Rockwell Medical Tech.: Baxter (BAX) deal adds value to core business, offset by increased Triferic costs; maintain Underperform
FBR Capital notes, RMTI announced that it had entered into a deal with BAX regarding co's core business in hemodialysis concentrates and dialysates. This deal increases the value of the base business, which had been operating at a loss for a number of years given the low margins. Firm thinks it also decreases the immediate need for financing ahead of a potential Triferic launch. The deal does not change firm's long-term outlook for RMTI shares, which is predominantly driven by Triferic.