Rockwell Medical Announces Extension of Multi-Year Distribution Agreement with Nipro Medical Corporation for Dialysis Concentrates

Rhea-AI Summary

Rockwell Medical, Inc. (RMTI) has extended its distribution agreement with Nipro Medical Corporation through May 2024, committing approximately $11.4 million in purchases over three years. This partnership, established in 2008, allows Nipro to distribute Rockwell's dialysis concentrates in Latin America and the Caribbean. Rockwell Medical, a leading supplier of hemodialysis concentrates in the U.S. with an annual revenue of $60 million, anticipates growth in the renal market as more patients undergo hemodialysis.

Positive

• Extended distribution agreement with Nipro Medical Corporation enhances market presence.
• Minimum purchase commitment of approximately $11.4 million solidifies revenue stream.
• Rockwell Medical is a leading supplier in the dialysis market with $60 million in annual revenue.

Negative

• None.

Provides for minimum of approximately $11.4M in purchases over 3-year Period

WIXOM, Mich., June 11, 2021 (GLOBE NEWSWIRE) -- Rockwell Medical, Inc. (Nasdaq: RMTI), a biopharmaceutical company dedicated to transforming the treatment of iron deficiency and anemia management and improving outcomes for patients around the world, today announced that it extended its distribution agreement with its long-term distribution partner, Nipro Medical Corporation (NMC), for a period of three years through May 2024. The agreement was originally initiated in 2008. With the extension of the agreement, NMC will continue to distribute dialysis concentrates manufactured by Rockwell Medical to numerous countries in Latin America and the Caribbean. NMC is a leading renal, medical, surgical and interventional radiology products manufacturer and a major distributor of renal products in these regions.

“We have a longstanding relationship with Nipro Medical Corporation, a partner of choice, and are pleased to extend our distribution agreement to continue to bring important dialysate concentrate products to patients,” said Russell Ellison, M.D., President and Chief Executive Officer of Rockwell Medical. “We look forward to working with Nipro to optimize sales of Triferic in numerous countries in Latin America and the Caribbean.”

“We welcome the opportunity to extend our relationship with Rockwell Medical and to distribute their important renal products to dialysis clinics in Latin America and the Caribbean,” said Manny Zapata, Renal Division Manager Latin America, Nipro Medical Corporation. “The region provides a significant market opportunity, and we expect to see continued growth in the number of patients undergoing hemodialysis in the coming years. We look forward to working with Rockwell Medical to grow our business in this region.”

About Rockwell Medical’s Hemodialysis Concentrates Business

Rockwell Medical is the second largest supplier of hemodialysis concentrates in the United States, with core capabilities in the manufacture of hemodialysis concentrates under cGMP conditions in three U.S. facilities, as well as in the logistics of delivering these products to dialysis clinics throughout most of the United States. The Company’s reputation is based on more than 25 years of service to U.S. kidney dialysis centers. This business segment generates about $60 million in annual revenue. Rockwell Medical also supplies dialysis concentrates to distributors serving a number of foreign countries, primarily in the Americas and the Pacific Rim.

About Rockwell Medical

Rockwell Medical is a commercial-stage biopharmaceutical company developing and commercializing its next-generation parenteral iron technology platform, Ferric Pyrophosphate Citrate (FPC), which has the potential to lead to transformative treatments for iron deficiency in multiple disease states, reduce healthcare costs and improve patients’ lives. The Company has two FDA-approved therapies indicated for patients undergoing hemodialysis, which are the first two products developed from the FPC platform. Rockwell Medical is also advancing its FPC platform by developing FPC for the treatment of iron deficiency anemia in patients outside of dialysis, who are receiving intravenous medications in the home infusion setting. In addition, Rockwell Medical is one of two major suppliers of life-saving hemodialysis concentrate products to kidney dialysis clinics in the United States. For more information, visit www.RockwellMed.com.

Rockwell Medical Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, the sales of Rockwell Concentrates in foreign jurisdictions, the ability of NMC to market and distribute Rockwell’s products, and the ability to reach certain minimums set forth within the contract. Words such as, “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “could,” “can,” “would,” “develop,” “plan,” “potential,” “predict,” “forecast,” “project,” “intend” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Rockwell Medical’s SEC filings), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include, but are not limited to: the impact of the COVID-19 pandemic (including, applicable international or domestic orders), the ability to operate Rockwell’s manufacturing facilities in a manner that avoids any disruptions, on the ability to of RMC to secure necessary government tenders in applicable jurisdictions; and those risks more fully discussed in the “Risk Factors” section of our Quarterly Report on Form 10-Q for the period ended March 31, 2021 and of our Annual Report on Form 10-K for the year ended December 31, 2020, as such description may be amended or updated in any future reports we file with the SEC. Rockwell Medical expressly disclaims any obligation to update our forward-looking statements, except as may be required by law.

CONTACTS

Investors:
Argot Partners
212.600.1902
Rockwell@argotpartners.com

Media:
David Rosen
Argot Partners
212.600.1902
david.rosen@argotpartners.com

FAQ

What is the significance of Rockwell Medical's new distribution agreement with Nipro Medical Corporation?

The extended agreement allows Nipro to distribute Rockwell's dialysis concentrates through May 2024, ensuring a minimum of $11.4 million in purchases over three years.

How will the distribution agreement impact RMTI's revenue?

The agreement is expected to contribute to Rockwell Medical's revenue, which currently stands at approximately $60 million annually, by expanding sales in Latin America and the Caribbean.

When was the original agreement between RMTI and Nipro Medical Corporation initiated?

The original distribution agreement was initiated in 2008 and has now been extended for an additional three years.

What products does Rockwell Medical provide under the distribution agreement?

Rockwell Medical supplies dialysis concentrates to Nipro Medical, which distributes them to dialysis clinics in Latin America and the Caribbean.

What is Rockwell Medical's position in the hemodialysis market?

Rockwell Medical is the second-largest supplier of hemodialysis concentrates in the United States.