PATIENT SAFETY is #1
Optimal treatment algorithms for erythropoiesis-stimulating agent (ESA) and iron therapy in anemic CKD patients are lacking. Kuragano et al. evaluated hemodialysis patients over two years and report increased mortality risk and/or adverse events in those with high serum ferritin levels and high ferritin fluctuations, and an increase in adverse events in iron users. Clinical practice should avoid disproportionately high ESA or iron doses to achieve hemoglobin targets, particularly in those with significant comorbidity or ESA resistance
Correct. And Baxter has a history of getting their foot in the door with firms they eventually want to purchase. The most signicant piece of the Baxter announcement was that they were willing to make a $15 Million investment in Rockwell PRIOR to a binary event.
A Baxter Buyout of $35 cash plus Baxter Stock would put an end to the shanigans. At what price are shareholder willing to listen to a buyout? Because of the legality (or lack thereof) of the JC's and AF's of the world, a buyout may be the only option. What price would you accept?
with the current short float and 2 of the top 15 holiday "hot list" toys, and raised guidance both in the US and Internationally, expect a double to triple from current levels
Tuesday, August 12, 2014 at 02:35PM
Short interest figures for the end of July were released after the close yesterday, and we just sent our regular update of trends in short interest to clients. One table from the report is shown below and it lists the 25 stocks in the S&P 1500 that have more than one-quarter of their free floating shares sold short. Of the 25 stocks listed, GameStop (GME) is the only member of the S&P 500. Of the remaining 24 stocks, seven are mid caps and 17 are small caps. In terms of sector distribution, Consumer Discretionary and Technology are the most heavily represented with seven stocks each. Meanwhile, Consumer Staples and Utilities are the only two sectors that are not represented.
For each stock listed, we have also included its performance since the start of August. Of the 25 names listed, 16 are up so far this month, while just nine are down. Overall, the average return of the stocks listed is a gain of 0.44% compared to a gain of 0.17% for the S&P 1500. Additionally, were it not for the 20% declines in ITT Educational (ESI) and Rubicon Technology (RBCN), the average performance would have been more than 3%! In prior posts on short interest, you may recall that the most heavily shorted stocks were underperforming the overall market by a wide margin, which was the perfect environment for short-sellers. So far this month, the short-sellers are facing a little bit of give back, but they have still had a great spring and up until now, a good summer.
One of his recent favorites is DaVita HealthCare Partners Inc (NYSE:DVA), which operates a network of dialysis treatment centers in the United States catering to patients that have diabetes-induced kidney failure. Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.B) has been a steady buyer for several years and now owns nearly 30 million shares, equating to a $1.8 billion stake
Thankfully, one of the biggest providers of the drugs and chemicals used in dialysis has a solution to the problem. Little-known Rockwell Medical Inc (NASDAQ:RMTI) has been testing an iron supplement that goes right into bone marrow.
Moreover, SFP is far simpler to administer, and as a result, costs less money for firms such as DaVita to administer them. The more targeted action of SFP allows for smaller dosing of costly ESA drugs as well. Rockwell believes that DaVita and others will cut their total spending on ESAs from $2 billion annually to around $1.4 billion annually, a $600 million savings. And that’s just in the U.S.
Stifel Nicolaus analyst Annabel Samimy figures Rockwell will be able to benefit from those savings by charging firm pricing: “If SFP shows 10% ESA-sparing, SFP can theoretically save about $700 per patient per year in costs of ESA, assuming an annual EPO cost of $7,000. Of that $700, Rockwell (could) share the savings with dialysis centers, resulting in improved SFP margins well above 90%.” That works out to sales of more than $200 million annually, with solid profit margins.
CDER plans to provide a free of charge, live webcast of the November 6, 2014 meeting of the Oncologic Drugs Advisory Committee. While CDER is working to make webcasts available to the public for all advisory committee meetings held at the White Oak campus, there are instances where the webcast transmission is not successful; staff will work to re-establish the transmission as soon as possible. Further information regarding the webcast, including the web address for the webcast, will be made available at least 2 days in advance of the meeting at the following website: 2014 Meeting Materials, Oncologic Drugs Advisory Committee.
Is that the thought ductt?
$22 price target placed on RMTI today following the 10Year plus BAXTER deal per analyst Ling Wang with significant process in both Triferic and Calcitriol. Triferic provides significant upside and will de disruptive in the industry. Calcitriol manufacturing facility was approved by FDA with market launch by YE14. Pricing power and flexibility is evident through Triferic's unique vaule proposition and safety.
To your last point ... "Part of me wonders if this is the beginning of a take-over courtship by Baxter" ... this is how it often works. Perhaps a further stake, or complete buyout upon Triferic approval. This would end up being a cash cow for Baxter and RMTI shareholders would be handsomely rewarded.
Good for Baxter. But with the cash infusion, RMTI is now likely to hit bullish target of $58 per share in 12 months or so. RMTI currently trading at $10.60 and Baxter is injecting $35 million into RMTI with additional milestone payments. Baxter is the steady Eddy of the portfolio, but RMTI is the new Rocket ship. With the cash infusion from BAX and pre-purchase agreement, RMTI is now a 4-bagger. Plus, RMTI only has 30 mil plus shares outstanding and 7 million shares short. A squeeze that could double RMTI before year-end. I;ve always like BAX, but RMTI is nice investment as it is now de-risked. What do you think?