Rockwell Medical Technologies of Wixom, MI, is situated to move from R&D to a “high-margin drugmaker,” according to Crain’s Detroit Business. Rockwell started as a home-based son-and-family operation devoted to assembling dialysis kits and has grown into a company with 130 employees working in the sectors of end stage renal disease, chronic kidney disease, and iron deficiency anemia.
According to the company, its lead investigational drug, Soluble Ferric Pyrophosphate (SFP), is an iron salt that delivers iron in a way true to its physiology. SFP provides continuous iron maintenance therapy for the treatment or prevention of iron deficiency anemia in dialysis patients. It works so that iron is transferred at a cellular level, as dietary iron is, rather than as an IV treatment. SFP may be much cheaper to use than EPO, a hormone that controls red blood cell production in dialysis patients, Crain’s reported.
Founder, President, and CEO Rob Chioni said in May, “Our gross profits and revenues increased substantially (in first quarter 2010), and our business operations generated positive cash flow, supporting our development efforts for SFP. Our major clinical development in the first quarter was the announcement of our Phase IIb study results, which demonstrated exceptional safety data and clear dosing data. We have submitted our request to the FDA for an end-of-phase-II meeting, which we expect will take place within 60 days.”
Chioni said he expects revenues in 2010 to climb by at least 10 percent. Last year, Rockwell’s annual revenue rose from $13.5 million to $14.8 million, and the company cut losses from more than $3 million to $549,781. In the first quarter of 2010:
Sales increased to $15 million, up 17.1 percent compared to the first quarter of 2009.
Gross profit increased to $2.3 million, up 94 percent or $1.1 million compared to the first quarter of 2009.
Gross profit margins increased to 15.4 percent, compared to 9.3 percent in the first quarter of 2009.
R&D expense was $0.5 million, compared to $1.3 million in the first quarter of 2009.