Rockwell Medical shares down 18% over hemodialysis concentrates deal

Rockwell Medical shares were down 18% to $4.80 on Thursday after the company said it bought the hemodialysis concentrates business from Evoqua Water Technologies for $11 million in cash, plus two milestone payments of $2.5 million each at 12- and 24-month markts after the closing of the transaction.

The stock hit its 52-week high of $6.24 on Tuesday, and is up 245% in the past 12 months.

The Wixom, Mich.-based healthcare company said it bought the business through its cash balance. At the closing of the transaction, Rockwell Medical had about $15.3 million in cash and cash equivalents.

Under the terms of the agreement, Rockwell Medical bought Evoqua’s concentrates business, which includes all contracts, intellectual property, Food and Drug Administration 510(k) clearances and assets primarily associated with, and related to, Evoqua’s concentrates business nationwide, including liquid and powder bicarbonate and liquid acid.

Rockwell Medical also raised its 2023 revenue guidance to $82 million to $86 million. Analysts polled by FactSet projected revenue of $81.5 million in 2023. MarketWatch