-Rockwell’s Acid Concentrate Dialysate Products Appear to Have a Safety Advantage Over GranuFlo®-
Report is Available for Download at: www.lifesciadvisors.com/clients/rockwell
On May 25th, RenalWEB, a dialysis information resource on the internet for dialysis products, posted several articles stating that Fresenius Medical Care (NYSE: FMS), failed to disclose to non-Fresenius owned dialysis service providers, an elevated risk of patient mortality associated with cardiac arrest during hemodialysis from use with one of their dialysis products called GranuFlo®. This story was then picked up on June 14th by the New York Times.
GranuFlo® Woes Good for Rockwell. As a result of the RenalWEB and New York Times revelations, we believe that sales of GranuFlo® may decline as safety concerns emerge for this product. Rockwell Medical (NASDAQ: RMTI) should be poised to benefit from this opportunity as they sell a competitive product that doesn’t have the same safety risk.
Background on Dialysates. Patients who are undergoing dialysis are in the later stages of chronic kidney disease (CKD) and have kidneys that function much below normal levels. Due to this, they are unable to remove acidic waste products from their blood. Therefore, dialysis is implemented in these scenarios to help remove the additional waste products from the blood. Today, dialysate that is utilized in an artificial kidney during dialysis to help filter the patient’s blood delivers bicarbonate from two sources; from sodium bicarbonate and from citric acid, acetic acid or sodium diacetate, all three of which are metabolized through the liver.