Rockwell Medical, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net sales reaching $101.5 million, a 21.4% increase from $83.6 million in 2023. The growth was primarily driven by a $6.2 million contribution from customers acquired through the Evoqua Asset Acquisition, a $6.4 million special order from DaVita, and $9.1 million from increased sales and price adjustments to existing customers. The company's gross profit also saw a substantial rise, reaching $17.5 million compared to $8.7 million in the previous year, reflecting improved gross margins and effective pricing strategies.
In terms of operational changes, Rockwell Medical underwent a strategic shift by pausing its research and development efforts related to its Triferic product, resulting in a drastic reduction in research expenses from $1.1 million in 2023 to just $19,000 in 2024. The company also made notable organizational changes, including the promotion of Tim Chole to Chief Commercial Officer and Jesse Neri to Chief Financial Officer. Additionally, Rockwell expanded its distribution capabilities by entering into agreements with major health systems and international distributors, including a significant partnership with Fresenius Medical Care NA.
Despite these advancements, Rockwell Medical faces challenges, particularly with its largest customer, DaVita, which accounted for 45% of total net product sales in 2024. DaVita has indicated plans to transition to another supplier by mid-2025, which could result in a loss of approximately $34 million in revenue. The company is actively seeking to mitigate this impact by expanding its customer base and product offerings. Furthermore, Rockwell's financial stability is supported by a recently amended loan agreement with Innovatus, extending the maturity date to January 2029 and allowing for interest-only payments for up to 36 months.
As of December 31, 2024, Rockwell Medical reported a working capital of $22.9 million and cash reserves of approximately $21.6 million. The company is focused on achieving sustained profitability and is exploring various avenues for growth, including potential acquisitions and partnerships. However, the outlook remains cautious due to the uncertainties surrounding its largest customer and the broader economic environment, which could impact its operational plans and financial performance in the future.
About ROCKWELL MEDICAL, INC.
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