Rockwell Medical Provides Investor Update July 2, 2018
Files Suit in Federal Court Against Former CEO Chioini, Former CFO Klema, Board Member Boyd and Former Board Member Bagley
WIXOM, Mich., July 2, 2018 /PRNewswire/ -- Rockwell Medical, Inc.(NASDAQ:RMTI) today filed a lawsuit (the "Lawsuit") in the United States District Court for the Eastern District of Michigan against the Company's former CEO Rob Chioini, former CFO Thomas Klema, board member Ron Boyd and former board member Patrick Bagley.
The Lawsuit alleges that Chioini, Klema, Boyd and Bagley have for years mismanaged the Company, promoting self-enrichment and poor corporate governance at the expense of Rockwell Medical's shareholders, employees and patients in need of the Company's life-changing drug, Triferic. Their recent continued attempts to paralyze the Board's and the Company's ability to operate follows a long-line of wrongful acts that are outlined in the Lawsuit. In addition, the Lawsuit outlines the timing and rationale for the Board's decision to terminate Chioini and Klema.
Ben Wolin, Chairman of the Board, said, "Importantly, the five independent directors of the Board are continuing to make progress on the significant efforts underway to put the Company on stable footing, including identifying and hiring a new CEO and CFO, engaging a new audit firm and implementing our new Triferic commercialization strategy."
Mr. Wolin added, "We recognize how both upsetting and confusing these events resulting from the harmful actions taken by Chioini, Klema, Boyd and Bagley must be for our investors. We will continue to vigorously defend the Company and take actions that are in the best interest of the Company and all our stakeholders."
About Rockwell Medical, Inc.
Rockwell Medical is a fully-integrated biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with innovative products for the treatment of iron replacement, secondary hyperparathyroidism and hemodialysis.
Rockwell's anemia drug Triferic is the only FDA-approved product indicated for iron replacement and maintenance of hemoglobin in hemodialysis patients. Triferic delivers iron to patients during their regular dialysis treatment, using dialysate as the delivery mechanism. Triferic has demonstrated that it safely and effectively delivers sufficient iron to the bone marrow and maintains hemoglobin, without increasing iron stores (ferritin). Rockwell intends to market Triferic to hemodialysis patients in the U.S. dialysis market and other major markets globally.
Rockwell's FDA approved generic drug Calcitriol is for treating secondary hyperparathyroidism in dialysis patients. Calcitriol (active vitamin D) injection is indicated in the management of hypocalcemia in patients undergoing chronic renal dialysis. It has been shown to significantly reduce elevated parathyroid hormone levels. Reduction of PTH has been shown to result in an improvement in renal osteodystrophy. Rockwell intends to market Calcitriol to hemodialysis patients in the U.S. dialysis market.
Rockwell is also an established manufacturer and leader in delivering high-quality hemodialysis concentrates/dialysates to dialysis providers and distributors in the U.S. and abroad. As one of the two major suppliers in the U.S., Rockwell's products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Rockwell has three U.S. manufacturing/distribution facilities.
Rockwell's exclusive renal drug therapies support disease management initiatives to improve the quality of life and care of dialysis patients and are intended to deliver safe and effective therapy, while decreasing drug administration costs and improving patient convenience. Rockwell Medical is developing a pipeline of drug therapies, including extensions of Triferic for indications outside of hemodialysis. Please visit www.rockwellmed.com for more information.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, Rockwell's intention to hire a new Chief Executive Officer, Chief Financial Officer and audit firm. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "could," "plan," "potential," "predict," "forecast," "project," "plan", "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While Rockwell believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including without limitation those set forth in Rockwell's SEC filings), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include: the ongoing litigation with Rockwell's former Chief Executive Officer, Chief Financial Officer and certain current and former directors; the timing for the appointment of a successor Chief Executive Officer, Chief Financial Officer and independent auditor; Rockwell's ability to maintain compliance with SEC and NASDAQ rules and requirements; and whether Rockwell can successfully execute on its business strategy. Rockwell expressly disclaims any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.
Kelly Sullivan or Arielle Rothstein
Joele Frank, Wilkinson Brimmer Katcher
SOURCE Rockwell Medical, Inc.