Rockwell Medical Inc [NASDAQ:RMTI] has been gaining upside momentum over the last few days, despite weakness in the equity markets. Yesterday, it edged higher and volumes increased, indicating that investor interest was on the rise.
The stock seems to have found some support at the $1 to the $1.5 price level, creating a low-risk entry setup for speculators. Over and above the speculative aspect of it, there are several fundamental factors that support this stock’s upside momentum.
One of them is the potential for revenue growth in South Korea. The company recently stated it had entered into an exclusive agreement with Jeil Pharmaceutical Co Ltd for the commercialization of Triferic® in South Korea. Under this agreement Jeil will exclusively develop and commercialize Triferic in South Korea.
On its part, Rockwell Medical will supply the product. As part of the deal, Rockwell Medical will get an upfront fees and stand to receive an upfront fees and will also stands to get tor milestone payments and royalties on all net sales. This will be a huge boost to the company’s revenues and stands to significantly drive up its value, and the stock value in the long run.
This reflects in the sentiments of Rockwell Medical CEO who stated that due to its extensive expertise in product commercialization and its understanding of the local market, it was in the right positioned to ensure that Korean hemodialysis patients.
He added that the deal was a major step forward in the company’s efforts to gain a global footprint and increase Triferic’s long-term value. Jeil CEO also affirmed the same stating that there was a huge unmet market in the over 78k patients that are receiving hemodialysis every year. Therefore, as this deal starts to actualize, the company’s value will also rally to reflect in its stock price in the near-term.
This stock could also be pushed up by an improvement in overall market sentiment. While sentiment is relatively depressed, the discovery of a COVID-19 vaccine would see excitement in the market rise, and high potentials stocks rally.
So far, several companies are in late stage tests of a vaccine and a breakthrough could be near within the year. If this happen soon, high potential stocks like RMTI could see their value rocket in the short-term.
About Rockwell Medical Inc
Rockwell Medical Inc is a biopharma company that focuses on kidney disease treatments. It is headquartered in Wixom, Michigan.