Rockwell Medical Enters into Multi-Million Dollar Distribution Agreement with Nipro Medical Corporation

Rhea-AI Summary

Rockwell Medical (Nasdaq: RMTI) has entered into a multi-million dollar distribution agreement with Nipro Medical The agreement allows Nipro to distribute Rockwell's hemodialysis concentrates and mixer globally, excluding the United States. Key points:

- Two-year agreement with a one-year extension option
- Minimum product purchases of $5.0 million for the first year with incremental increases thereafter
- Covers liquid and dry acid concentrates, bicarbonate concentrates, and dry acid concentrates mixer
- Aims to meet increasing market demand for Rockwell's hemodialysis products
- Expands accessibility to Rockwell's products for dialysis patients worldwide

Positive

• Multi-million dollar distribution agreement with Nipro Medical
• Global distribution rights (excluding U.S.) for Rockwell's hemodialysis products
• Minimum product purchases of $5.0 million for the first year
• Incremental increases in purchase minimums for subsequent years
• Potential for expanded market reach and increased sales

Negative

• None.

Insights

Financial Analyst

This distribution agreement marks a significant business development for Rockwell Medical. The $5.0 million minimum purchase commitment for the first year, with incremental increases thereafter, provides a solid revenue foundation for the company. This deal could potentially boost Rockwell's international market presence and diversify its revenue streams. However, investors should note that the initial agreement is for only two years, with a one-year extension option, which introduces some uncertainty beyond that timeframe. The partnership with Nipro, a respected player in the healthcare industry, could enhance Rockwell's credibility and open doors for future collaborations. Overall, this agreement represents a positive step for Rockwell's global expansion strategy and financial outlook.

Medical Device Industry Expert

This partnership between Rockwell Medical and Nipro is strategically significant in the global hemodialysis market. Nipro's extensive distribution network, particularly strong in Asia and Latin America, could substantially expand Rockwell's international footprint. The agreement covers a comprehensive range of hemodialysis products, including both liquid and dry concentrates, which aligns well with the growing demand for dialysis treatments worldwide. The inclusion of Rockwell's dry acid concentrates mixer in the deal is noteworthy, as it could provide a competitive edge in markets where water quality or logistics are challenging. This collaboration has the potential to strengthen both companies' positions in the rapidly evolving renal care landscape.

Market Research Analyst

The global hemodialysis market is experiencing steady growth, driven by factors such as the rising prevalence of chronic kidney diseases and an aging population. This agreement positions Rockwell Medical to capitalize on this trend, particularly in emerging markets where Nipro has a strong presence. The exclusion of the United States from the distribution rights suggests Rockwell is maintaining control over its domestic market while leveraging Nipro's international reach. The incremental increase in purchase commitments beyond the first year indicates confidence in market growth. However, investors should monitor how this partnership affects Rockwell's profit margins and whether it leads to increased market share in key regions.

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 executed a distribution agreement with Nipro Medical Corporation ("Nipro"), as part of Nipro Corporation Japan, a leader in the global healthcare and medical device industry.

Under the terms of the agreement, Rockwell Medical will supply Nipro with the Company's liquid and dry acid and bicarbonate hemodialysis concentrates, as well as its dry acid concentrates mixer, for which Nipro has the right to distribute the Company's products globally, excluding the United States. The agreement will remain in effect for two years with the option to extend the agreement for an additional one-year period and includes product purchasing minimums of $5.0 million for the first year and incremental increases each subsequent year.

"Nipro is globally renowned for its high-quality medical devices and healthcare solutions specifically in the renal and cardiovascular therapeutic areas," said Mark Strobeck, Ph.D., President and CEO at Rockwell Medical. "There continues to be increasing market demand for our hemodialysis portfolio of products. We are excited by the opportunity this partnership continues to offer Rockwell Medical and the patients who will be positively impacted by our hemodialysis concentrates worldwide."

“Rockwell Medical has been a longtime partner, and we are pleased to be able to extend our relationship with them and in turn, expand accessibility to their products for dialysis patients around the world," said Manny Zapata, Renal Division Manager Latin America, Nipro Medical Corporation. "As we've stated previously, we continue to see continued growth in the number of patients undergoing hemodialysis treatments and are happy to partner with Rockwell Medical to support these patients with its high-quality life sustaining renal products."

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. Rockwell Medical is the second largest supplier of acid and bicarbonate concentrates for dialysis patients in the United States and has the vision of becoming the leading global supplier of hemodialysis concentrates. Certified as a Great Place to Work^® in 2023 and 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 become the leading global supplier of hemodialysis concentrates. 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/20240903263284/en/

Heather R. Hunter

SVP, Chief Corporate Affairs Officer

(248) 432-1362

IR@RockwellMed.com

Source: Rockwell Medical, Inc.

FAQ

What is the value of Rockwell Medical's distribution agreement with Nipro?

The agreement includes minimum product purchases of $5.0 million for the first year, with incremental increases in subsequent years.

Which products are included in Rockwell Medical's distribution agreement with Nipro?

The agreement covers Rockwell Medical's liquid and dry acid concentrates, bicarbonate concentrates, and dry acid concentrates mixer for hemodialysis.

What is the duration of Rockwell Medical's distribution agreement with Nipro?

The agreement is for two years with an option to extend for an additional one-year period.

In which markets can Nipro distribute Rockwell Medical's products under this agreement?

Nipro has the right to distribute Rockwell Medical's products globally, excluding the United States.