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CorMedix (CRMD) Q3 Earnings call transcript Oct 30, 2024

AInvestFriday, Nov 1, 2024 2:11 am ET
2min read

The third quarter of 2024 marked a significant milestone for CorMedix Inc., as the company recorded its first full quarter of product shipments of DefenCath, its antimicrobial-coated central venous catheter, since its commercial launch earlier this year. In this earnings call, CorMedix's executives provided insights into the company's financial performance, strategic initiatives, and future outlook.

Financial Performance and Outlook

CorMedix reported a net revenue of $11.5 million for the third quarter, surpassing street consensus and largely driven by its initial anchor customer, U.S. Renal, which has effectively implemented DefenCath within its clinics. The company has secured new agreements with two midsized dialysis operators and one large-scale operator, expanding DefenCath's reach to roughly 60% of dialysis clinics in the U.S. CorMedix anticipates purchases from these new partners to commence before the end of the fourth quarter and is optimistic about being EBITDA positive for the fourth quarter.

Strategic Initiatives and Clinical Developments

CorMedix is actively working on expanding the label for DefenCath beyond hemodialysis and is scouting for commercial stage business development opportunities to broaden its product portfolio. The company is also focusing on clinical developments, particularly in the area of total parenteral nutrition (TPN) for adults, with plans to submit the clinical protocol to the FDA by mid-November. CorMedix aims to obtain FDA approval for an expanded use of its Taurolidine and Heparin catheter lock solution in the late 2020s, estimating annual peak sales potential in this indication to be between $150 million and $200 million.

Market and Competitive Landscape

The dialysis market is a significant focus for CorMedix, with the company targeting a share of the 90% volume opportunity in the outpatient sector. The company is also actively engaging with inpatient healthcare providers, recognizing the potential for better price durability and long-term growth in this segment. CorMedix is working on expanding its reach to the remaining 40% of dialysis operators that have yet to adopt DefenCath, with a strategy to engage and educate these providers on the benefits of the product.

Challenges and Future Outlook

CorMedix faces challenges in navigating the complexities of implementing DefenCath in the inpatient setting, where the process is more drawn out and requires a larger investment in resources and relationships. However, the company remains optimistic about its future prospects, with a focus on executing well on its outpatient strategy while also making progress in the inpatient market. CorMedix is committed to continuing its efforts to expand its product portfolio and capture a larger share of the dialysis market.

In conclusion, CorMedix Inc.'s third quarter earnings call highlighted the company's strong financial performance, strategic initiatives, and forward-looking outlook. With a focus on expanding its reach in the dialysis market and exploring new opportunities in clinical developments, CorMedix is well-positioned to continue its growth trajectory and capitalize on the significant potential in the antimicrobial-coated central venous catheter market.

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