Rockwell Medical (RMTI) H.C. Wainwright 3rd Annual Kidney Virtual Conference summary

Business overview and market position

• Over 20 years of expertise in manufacturing, commercializing, and distributing dialysis concentrates, serving over 12,000 in-center dialysis facilities in the US.

• Second-largest provider in the US, holding about 20% market share in a $450 million market, expected to surpass $500 million by 2028 with 4%-6% annual growth.

• Only two major players dominate the US market, with key customers including DaVita and Fresenius.

• Strategic focus on core business and operational efficiency to drive profitability and margin expansion.

Financial performance and guidance

• Gross margins improved from a loss to 13%-15% in 2024, with targets of 20% in 2025 and above 25% in 2026; long-term goal is over 30%.

• Revenue guidance for 2024 increased to $90-$94 million, with a clear path to exceed $100 million annualized revenue soon.

• Achieved first quarter of positive Adjusted EBITDA in Q4 last year; expects to generate positive cash flow in 2024.

• Eight consecutive quarters of revenue growth, expense reduction, and gross margin improvement.

Growth strategies and customer relationships

• Acquired Evoqua concentrates business, adding 700 new customers and eliminating the third-largest competitor.

• Actively pursuing further acquisitions of varying sizes to expand market reach, with potential announcements in the next 6-12 months.

• Strong, long-standing partnership with DaVita, which is also a shareholder, supporting ongoing business and new opportunities.

• DaVita’s ownership is below 10%, with preferred shares convertible at $11, reflecting confidence in future value.