Rockwell Medical Technologies (RMTI, RMTIW) Message Board

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Biotech / Medical : Rockwell Medical Technologies (RMTI, RMTIW)

RMTI 1.090

-2.2%

3:59 PM EDT

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From: scott_jiminez	11/9/2004 8:34:33 AM
	of 34

Tremendous strength in the stock and warrants recently. Some solid reasons: 1. Medicare announced recently (3 Nov.) that physicians and hospitals that provide outpatient care will receive higher payments next year. More specifically, Medicare also raised reimbursement levels for drugs given to kidney dialysis patients. 2. Regarding DaVita Corp (NYSE:DVA), one of the country's largest providers of outpatient dialysis treatment (and one of Rockwell's largest clients).... [paraphrased and condensed from various reports] Piper Jaffrey ups DaVita. Piper Jaffray analyst Darren Lehrich upgraded shares of DaVita to outperform (from market perform) citing final rules for 2005 reimbursement as well as the company's valuation compared with Renal Care Group. Also, Justin Lake, a UBS analyst who covers health care providers, said in a research note that Medicare's new physician fee schedule and higher drug reimbursement will help dialysis providers. Both Jaffray and Thomas Weisel believed that DVA would see a higher Medicare reimbursement than previously expected. [DaVita reported better than expected earnings yesterday: 3rd qtr. net income was up 59% (0.59/share vs. 0.52/share expected), revenue rose 16%. Jaffrey noted 'same-store' treatment growth as one element in DVA's stellar performance.] 3. Rockwell has just reported that its Ferric pyrophosphate dialysis product has begun safety/clinical trials protocol review at the FDA (it's been a long wait). If this is suggestive that clinical trials will begin soon thereafter (most believe these trial are quite straightforward and involve little risk), then the prospect of this 'iron-product' entering the market within the next ~12 months offers quite a prospect for this little company.

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