$7.5M initial
equity investment in Rockwell
Amended and expanded supply agreement
Strengthens Rockwell's financial position,
laying groundwork for improved concentrate business
WIXOM, Mich., April 11, 2022 /PRNewswire/ -- Rockwell Medical,
Inc. (Nasdaq: RMTI), a biopharmaceutical company dedicated to
transforming the treatment of iron deficiency and anemia
management, today announced an expanded partnership with DaVita
Inc. (NYSE: DVA), a leading kidney care provider.
Rockwell Medical has been working to revise certain terms of its
supply contracts with customers in an effort to stabilize its
concentrates business. These two agreements with DaVita are
designed to help ensure that Rockwell Medical is on a more stable
financial footing to supply its partners so they can serve patients
undergoing dialysis in their centers.
The amended supply agreement is designed to enable Rockwell
Medical's concentrates business the potential to operate profitably
in the future.
Additionally, DaVita entered into a stock purchase agreement
under which it will invest up to $15
million in convertible preferred stock in two
tranches. The first tranche of $7.5
million has been funded and is initially convertible into
7,500,000 shares of common stock at a conversion price of
$1.00 per share. DaVita has
also committed to investing another $7.5
million, if Rockwell satisfies certain conditions.
"As the second largest supplier in the
United States of life-saving hemodialysis concentrate
products, Rockwell Medical is important to the dialysis industry
and the patients we serve," commented Russell Ellison, M.D., M.Sc., President and CEO
of Rockwell Medical. "Through this strategic arrangement, the
company achieved a major milestone by strengthening the
concentrates business. We continue discussions with other major
customers in an effort to create the foundation on which we intend
to grow our broader business."
Rockwell Medical has filed its Annual Report on Form 10-K for
the year ended December 31, 2021 and
a Current Report on Form 8-K describing the amended supply
agreement and the equity investment by DaVita.
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 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 seeking to advance 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.
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" 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 be able to achieve planned
cost savings to operate its concentrates business profitability, or
that Rockwell Medical will be able to satisfy the funding
conditions for the second tranche of the DaVita investment.
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,
2021, 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.
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SOURCE Rockwell Medical Technologies, Inc.