Rockwell Medical’s shares experienced a sharp decline of 18% to $4.80 on Thursday following the announcement of its acquisition of Evoqua Water Technologies’ hemodialysis concentrates business. The deal was sealed for $11 million in cash, along with two milestone payments of $2.5 million each scheduled at the 12- and 24-month marks after the transaction’s close.
While the stock had recently reached its highest point in the past 52 weeks, hitting $6.24 on Tuesday, it has demonstrated an impressive 245% increase over the course of the past year.
The healthcare company, headquartered in Wixom, Michigan, made the purchase using its existing cash balance. As of the transaction’s completion, Rockwell Medical possessed approximately $15.3 million in cash and cash equivalents.
In line with the agreement, Rockwell Medical has acquired Evoqua’s concentrates business, encompassing all associated contracts, intellectual property, FDA 510(k) clearances, and assets related to the nationwide business. This includes liquid and powder bicarbonate and liquid acid products.
Additionally, Rockwell Medical has revised its revenue guidance for 2023 to a range of $82 million to $86 million, signifying an optimistic outlook. Analysts surveyed by FactSet previously estimated revenue of $81.5 million for the same year.