Rockwell Medical RMTI Stock News

Rockwell Medical Inc (NASDAQ: RMTI) is running for the top in the market this morning, trading on gains of more than 17% in the premarket. The excitement stems from an after-hours press release that was issued yesterday. The release outlined the details of a new license and supply agreement. Here’s what’s happening.

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RMTI Stock Soars On License And Supply Agreement

In a recent press release, Rockwell Medical said that it has entered into license and supply agreements with a subsidiary of Sun Pharmaceutical Industries. The agreements surround the rights to commercialize Triferic in India.

According to the agreements, Sun Pharma will work to bring Triferic to the region with exclusive rights to do so. As Sun Pharma develops and commercializes the drug in the region, RMTI will be responsible for supplying the product.

In exchange for the exclusivity, Sun Pharma has agreed to make an upfront payment. The company has also agreed to make milestone payments and pay royalties on net sales. However, the amounts of the upfront payment, milestone payments, and royalties were undisclosed.

In a statement, Stuart Paul, President and CEO at RMTI, had the following to offer:

We are pleased to establish this important relationship with Sun Pharma, which has a strong presence in the nephrology segment in India. With a dedicated business unit, market leading sales force and medical support personnel, together with its experience with license and distribution partnerships with large global pharmaceutical companies, Sun Pharma is well positioned to ensure that hemodialysis patients have access to our innovative therapeutic. This is a meaningful advancement for Triferic as we expand our global footprint and drive the long-term value of Triferic.

A Move In The Right Direction

A move like the one that we’re seeing in Rockwell Medical stock is to be expected when news like this is released. After all, Sun Pharma is no small company.

Currently, Sun Pharma generates more than $4 billion in annual sales around the world. Considering the company’s success in the commercialization of medicine, it only makes sense that the Sun Pharma is a perfect partner for this venture.

While RMTI did not release amounts of payments, licensing fees and milestones in the biotechnology space tend to be millions and potentially tens to hundreds of millions of dollars respectively. As such, I expect that the agreement will also lead to a meaningful infusion of funding. All in all, this is great news for the company and its investors.

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