Why CorMedix Stock Popped Wednesday

CorMedix Inc. CRMD shares traded higher Wednesday after the company reported better-than-expected third-quarter earnings results. Also, the company received Food and Drug Administration approval for DefenCath under NDA: 214520.

What To Know: CorMedix reported its third-quarter earnings results on Nov. 14 after the close of the market. The company posted quarterly losses of 17 cents per share, which topped analyst expectations of losses of 21 cents per share, unchanged from the same period last year.

On Wednesday, CorMedix announced FDA approval of DefenCath, used to lower the incidence of catheter-related bloodstream infections (CRBSIs) for the limited population of adult patients with kidney failure receiving chronic hemodialysis through a central venous catheter.

The approval is significant in that DefenCath is the first and only FDA-approved antimicrobial CLS in the U.S.

"The approval of DefenCath marks a major advancement in reducing life-threatening infections for patients receiving hemodialysis via central venous catheters and an important milestone for CorMedix," said CEO Joseph Todisco.

"As the first FDA-approved antimicrobial catheter lock solution designed to prevent CRBSIs, DefenCath offers healthcare providers an option to reduce the risk of infections in a patient population already vulnerable due to underlying kidney failure.

The company looks forward to working with health care providers and facilities to open access for hemodialysis patients to DefenCath in early 2024, the CEO said. 

Additionally, two analysts modified their price targets for the stock on Wednesday:

• RBC Capital analyst Gregory Renza maintained Cormedix with a Outperform and raised the price target from $6 to $10.
• Needham analyst Serge Belanger maintained Cormedix with a Buy and lowered the price target from $12 to $10.
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• CRMD Price Action: Shares of CRMD were up 0.6% at $3.35 in the after-hours session at the time of publication, according to Benzinga Pro. The stock gained 6.39% in the regular session.
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