My Stock of the Week is CorMedix (CRMD). After years of development, CRMD received FDA approval for its DefenCath product in November 2023 and launched it in April 2024. DeFenCath is a solution of tarolidine and heparin that is injected into a catheter after each use. This injection blocks infection caused by catheters used in kidney dialysis. Treating infection in kidney dialysis is very costly, at an estimated cost of around $63,000. There are roughly 19 million outpatient dialysis treatments per year, so this is a very big market.
The company is currently in Phase 3 trials seeking FDA approval for an additional use for feeding tubes that are inserted into the GI tract. This market is estimated to be about $200 million. There are several other catheter applications that are suitable for the DefenCath product.
Sales of DefenCath have exploded, going from $700k in the first quarter of 2024 and hitting $38 million in the June 2025 quarter. This growth is driven primarily by agreements with Large Dialysis Organizations (LDOs) such as Fresenius (FMS) and DaVita (DVA), which control 91% of the US dialysis market. CRMD is now estimating DefenCath sales of $200 million to $215 million in 2025.
Shortly after announcing its supply deal with an LDO, CRMD surprised the market with a spot secondary of 6.6 million shares at an average price of $12.87 on June 27. The stock dropped sharply on the news and quickly broke pricing due to concerns about dilution.
However, on August 7, it became clear that this offering was done in preparation for the acquisition of Melinta Therapeutics for $300 million. This deal was done to broaden CRMD’s offerings beyond DefenCath. Melinta has six infectious disease products and an important phase III study for Rezzayo expected in the first half of 2026. There are also several overlaps in marketing and sales that will make the deal accretive to earnings.
On September 2, CRMD announced that it now sees pro forma revenues of $325 million to $350 million in 2025 and pro forma EBITDA of $165 million to $185 million.
CRMD has had revenues in the first half of 2025 of $79 million. The new guidance will produce revenues of $246 million to $271 million in the second half of the year, which is a jump of over 300%. This implies eps in the range of $0.38 to $0.45 or more in the next two quarters, but there is a high level of uncertainty due to the costs of merging the enterprises. Analysts have yet to fully update guidance, but the currently published eps is $1.69 for 2025 and 42% growth to $2.33 in 2026. That is a forward PE of just over five, which is exceptionally low given the high level of eps growth.
CRMD management will need to execute, but the potential here is tremendous. The company will probably need additional cash during the next year, and there are competitors working on a product similar to DefenCath, but currently, CRMD owns the market and has a first-mover advantage.
The stock has been very volatile and has pulled back sharply over the last week. I suspect this may be due to moves made by Deerfield Management Company, which controlled Melinta. Deerfield and other institutional investors are holding $150 million in convertible debt that was used to finance the deal. There is likely some hedging of those positions, putting pressure on the stock.
Technically, the chart is a bit of a mess, but there is support around the 50-day simple moving average at $12.17. The market needs some time to understand the finances here and to digest the financing, but I’m looking for support at $12 as a good entry level.
As always, we will aggressively trade the stock as it develops, but the fundamentals here look compelling.
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