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Investing.com -- Shares of CorMedix Inc . (NASDAQ:CRMD) fell sharply by 30% following an announcement that a significant customer order for its DefenCath product has been delayed. The pharmaceutical company, which specializes in life-threatening diseases and conditions, had anticipated beginning shipment to the customer in the fourth quarter of 2024, but operational resource constraints have pushed the timeline to 2025.
Despite the setback, CorMedix reported a profitable fourth quarter for the first time in its history, with net income of $13.5 million and adjusted EBITDA of $15.3 million. The company’s Q4 earnings per share (EPS) of $0.22 exceeded analyst expectations by $0.05, and revenue for the quarter reached $31.2 million, slightly above the consensus estimate of $31 million. This represents a significant improvement from the fourth quarter of 2023, when the company reported a net loss of $14.8 million.
The recent financial results highlight the successful outpatient launch of DefenCath in July 2024, which contributed to the company’s full-year revenue of $43.5 million. CorMedix attributes this performance to the successful implementation of the product by its outpatient dialysis customers. Looking ahead, the company has set a preliminary net revenue guidance for the first half of 2025 between $50 million and $60 million, buoyed by the current purchasing customer run rate.
Operating expenses for Q4 2024 rose by approximately 9% to $17.1 million, driven mainly by increases in general and administrative expenses, which grew by about 36%, and a modest rise in selling and marketing expenses. Research and development costs, however, decreased by roughly 26%.
Despite the positive financials, the delay in DefenCath orders has clearly impacted investor confidence, as reflected in the stock’s significant drop. CorMedix remains hopeful that the customer will commence ordering and utilizing the product before mid-2025. The company also reported an increase in cash and short-term investments, excluding restricted cash, totaling $51.7 million as of December 31, 2024, and expects to end the first quarter of 2025 with over $75 million in cash and short-term investments.
The company’s CEO, Joe Todisco, expressed pride in the progress CorMedix has made and remains focused on growing the patient base and increasing access to DefenCath across care settings in 2025.
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