Rockwell Medical Secures $30 Million in New Financing to Advance Kidney Disease Therapies

On October 18, 2018, VCBeat (WeChat ID: VCbeat) learned from foreign media that biopharmaceutical company Rockwell Medical (NASDAQ: RMTI) announced a private placement of up to 7.55 million stock units to RBI Opportunities Fund, an affiliate of Richmond Brothers. Each stock unit consists of one share of common stock and a warrant to purchase 50% of a share of common stock. The price per stock unit is $3.97, equivalent to the closing price of Rockwell’s common stock on October 12, 2018 (the last trading day prior to the pricing of the transaction). The warrants are not exercisable for six months following the closing of the transaction, with an exercise price of $4.96 per share of common stock and a term of five years. Previously, Rockwell completed a total financing of $35 million, including $15 million in equity financing and $20 million in debt financing.

Rockwell initially issued approximately 5.54 million equity units and is expected to receive $22 million in proceeds on October 17, 2018, subject to customary conditions. In addition, by October 26, 2018, Richmond will have the right to purchase an additional $8 million worth of equity units at the same offering price per unit. To date, Rockwell has completed the offering of equity units totaling $30 million, without incurring any underwriting discounts or placement agent fees, and intends to use the net proceeds for working capital purposes.

Rockwell is primarily focused on the treatment of end-stage renal disease (ESRD) and chronic kidney disease (CKD). Its developed anemia drug, Triferic, is the only FDA-approved product for blood replacement and maintaining hemoglobin levels in patients undergoing hemodialysis. Another FDA-approved generic drug from the company, Calcitriol (active vitamin D), can be used to treat secondary hyperparathyroidism in patients with chronic renal dialysis. Currently, Rockwell’s best-selling product is a novel citric acid concentrate called CitraPure®, which is the only acid concentrate completely free of acetate. It is used during dialysis to reduce inflammation in hemodialysis patients while preserving albumin, hemoglobin, and erythropoiesis-stimulating agents (ESAs) in the blood. CitraPure® can also serve as an anticoagulant, reducing the amount of heparin required by patients during hemodialysis.

In the United States, kidney disease is a major health concern for the American population. Each year, more than 31 million Americans suffer from kidney disease, and over 100,000 die from kidney-related conditions. Impaired kidney function can occur suddenly or result from long-term health issues. Kidney disease may be temporary and reversible, or it may be permanent and life-threatening. In either case, without hemodialysis or kidney transplantation, the condition can be fatal.

Image from the official website

Rockwell Medical, founded in 1995 in Michigan, USA, is a biopharmaceutical company focused on end-stage renal disease (ESRD) and chronic kidney disease (CKD). Rockwell Medical’s vision is to improve patient outcomes through innovative pharmacological therapies. The company’s proprietary renal medications enable disease self-management, enhancing the quality of life and care for dialysis patients by providing safe and effective treatments while reducing medication management costs and offering greater convenience to patients. Rockwell is also a leading manufacturer and supplier of high-quality hemodialysis concentrates/dialysates—products that remove toxins from the body and replace key nutrients in the blood of dialysis patients to sustain life—with its products widely sold in global markets.