Rockwell Medical Enters into a Multi-Year Product Purchase Agreement with the World's Leading Provider of Dialysis Products and Services

Rhea-AI Summary

Rockwell Medical (RMTI) has signed a significant product purchase agreement with the world's leading dialysis products and services provider. The agreement covers the supply of SteriLyte®, Rockwell's liquid bicarbonate hemodialysis concentrates product. The partnership is expected to generate over $10 million in net sales for Rockwell in 2025, with incremental price increases in subsequent years.

The agreement has an initial term of three years with the option to extend for two additional one-year periods. Rockwell Medical, as the leading supplier of liquid bicarbonate in the United States, is currently the only manufacturer capable of producing liquid bicarbonate at a scale supporting major U.S.-based dialysis providers.

Positive

• Secured multi-year agreement with world's leading dialysis provider
• Expected to generate over $10 million in net sales in 2025
• Agreement includes annual price increases
• Potential five-year term through renewal options
• Additional revenue beyond previously disclosed 2025 estimates

Negative

• None.

Insights

Financial Analyst

This strategic agreement marks a significant milestone for Rockwell Medical, securing a $10 million revenue stream in 2025 with built-in growth through annual price increases. The multi-year structure, with a potential 5-year duration, provides stable, predictable revenue that strengthens RMTI's market position. For a company with a $66 million market cap, this deal represents approximately 15% of their current valuation in annual revenue. Being the sole manufacturer of liquid bicarbonate at scale for major U.S. dialysis providers gives RMTI significant competitive advantage and pricing power. The agreement with a global leader in dialysis services not only validates their product quality but also provides a strong foundation for future growth and potential market expansion.

Market Research Analyst

The dialysis market dynamics strongly favor RMTI's position in this deal. As the leading U.S. supplier of liquid bicarbonate and the only manufacturer at scale, they've created a significant barrier to entry for competitors. The agreement's structure with automatic price increases helps hedge against inflation and rising costs. While the initial $10 million revenue target is impressive, the real value lies in the potential for relationship expansion and the stability this brings to RMTI's business model. The customer's global presence could open doors for international market penetration, particularly valuable given RMTI's current focus on U.S. operations.

Partnership is expected to generate upwards of $10 million in net sales for the Company in 2025, with incremental price increases each subsequent year and an effective term of up to five years

WIXOM, Mich.--(BUSINESS WIRE)--

Rockwell Medical, Inc. (the "Company") (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced that the Company entered into a product purchase agreement (the "Agreement") with the world's leading provider of dialysis products and services ("the Customer").

Rockwell Medical is the leading supplier of liquid bicarbonate in the United States and the only organization that currently manufactures liquid bicarbonate at the scale that can support leading U.S.-based dialysis providers. Under the terms of the Agreement, Rockwell Medical will supply the Customer with the Company's liquid bicarbonate hemodialysis concentrates product, SteriLyte^®. The Agreement will remain in effect for three years with the option to renew for two additional one-year periods and is expected to generate upwards of $10 million in net sales for the Company in the first year, a portion of which was not included in Rockwell Medical's previously disclosed revenue estimates for 2025, with incremental price increases each subsequent year.

"We have had a long-standing relationship with the Customer and are excited to further solidify our partnership together through this long-term agreement," said Mark Strobeck, Ph.D., President and CEO of Rockwell Medical. "The Customer is a leading global healthcare company that continuously works to improve patients’ quality of life by offering them high-quality products, as well as innovative technologies and treatment concepts. We are pleased to be among the esteemed group of suppliers that supports the Customer and the patients they serve each and every day around the globe."

About Rockwell Medical

Rockwell Medical, Inc. (Nasdaq: RMTI) is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide. Rockwell Medical's mission is to provide dialysis clinics and the patients they serve with the highest quality products supported by the best customer service in the industry. Rockwell is focused on innovative, long-term growth strategies that enhance its products, its processes, and its people, enabling the Company to deliver exceptional value to the healthcare system and provide a positive impact on the lives of hemodialysis patients. Hemodialysis is the most common form of end-stage kidney disease treatment and is typically performed at freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities, or in a patient’s home. Rockwell Medical's products are vital to vulnerable patients with end-stage kidney disease, and the Company is relentless in providing unmatched reliability and customer service. Certified as a Great Place to Work^® in 2023 and 2024 and named Fortune Best Workplaces in Manufacturing & Production^TM in 2024, Rockwell Medical is Driven to Deliver Life-Sustaining Dialysis Solutions^TM. For more information, visit www.rockwellmed.com.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as, "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "could," "can," "would," "develop," "plan," "potential," "predict," "forecast," "project," "intend," "look forward to," "remain confident," “are determined,” “are on track,” “are resolute in our vision,” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. There can be no assurance that Rockwell Medical will generate the expected revenue from the Agreement or that the Agreement will be renewed. 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 those risks more fully discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2023, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217070795/en/

Heather R. Hunter

SVP, Chief Corporate Affairs Officer

(248) 432-1362

IR@RockwellMed.com

Source: Rockwell Medical

FAQ

How much revenue will RMTI generate from the new dialysis supply agreement in 2025?

The agreement is expected to generate upwards of $10 million in net sales for Rockwell Medical (RMTI) in 2025.

What is the duration of RMTI's new product purchase agreement?

The agreement has an initial term of three years with the option to extend for two additional one-year periods, potentially lasting up to five years total.

What product will RMTI supply under the new dialysis agreement?

Rockwell Medical will supply SteriLyte®, their liquid bicarbonate hemodialysis concentrates product.

Will RMTI receive price increases under the new supply agreement?

Yes, the agreement includes incremental price increases each year after 2025.

What is RMTI's market position in liquid bicarbonate supply?

Rockwell Medical is the leading supplier of liquid bicarbonate in the United States and the only manufacturer producing at scale to support major U.S.-based dialysis providers.