CorMedix Stock Plunges 16% in a Month: Should Investors Buy the Dip?

Core Insights - CorMedix (CRMD) has shown significant growth in 2025, driven by the successful uptake of its lead drug, DefenCath, which is the first FDA-approved antimicrobial catheter lock solution in the U.S. [1][9] - Despite the growth, CorMedix shares have declined by 16.4% recently, underperforming the industry and broader market [2][27] - The company has raised its sales guidance for DefenCath to $200-$215 million for 2025, up from a previous estimate of $180-$200 million [8][30] Product Performance - DefenCath generated $78.8 million in net revenues in the first half of 2025, indicating a strong commercial start [7][8] - The drug's unique market position, being the only FDA-approved therapy for a specific condition, is supported by patent protection until 2033, providing a long-term revenue generation opportunity [9][10] Acquisition Impact - CorMedix completed a $300 million acquisition of Melinta Therapeutics, adding seven marketed drugs to its portfolio, which enhances its presence in the hospital acute care and infectious disease markets [12][30] - The acquisition is expected to contribute $125 million to $135 million in revenues in 2025 and is projected to be accretive to earnings per share starting in 2026 [14][15] Market Position and Competition - CorMedix currently faces competition risks from larger companies like Pfizer and Amphastar, which have established heparin products and could enter the CRBSI prevention market [16][17][27] - The company is exploring potential label expansion for DefenCath into total parenteral nutrition (TPN), which could yield peak annual sales of $150-$200 million if approved [11] Financial Outlook - CorMedix anticipates pro forma revenues of $325-$350 million for 2025, reflecting the immediate contribution from the Melinta acquisition [14][30] - Earnings estimates for 2025 have improved from $1.22 to $1.85 per share, indicating positive market sentiment despite recent stock performance [24]