CorMedix Stock Tumbles After $85M Stock Sale; But Retail Sees Bargain In DefenCath Bet

Shares of CorMedix fell 10.7% during Thursday's after-hours trading following their announcement of a planned $85 million common stock offering.

RBC Capital Markets is acting as the sole bookrunner.

Underwriters have a 30-day option to acquire up to 15% more shares at the public offering price after deduction of underwriting discounts and commissions.

Proceeds from the offering will support general corporate operations, including working capital requirements, research and development expenditures, as well as potential acquisitions and partnerships.

The stock offering comes just days after CorMedix raised its revenue forecast for the second quarter, attributing the increase to a faster-than-planned expansion of DefenCath, its FDA-approved catheter lock therapy. 

The company now sees Q2 sales between $35 million and $40 million, up from a previous estimate of $31 million.

The guidance boost follows wider-than-expected adoption of DefenCath across a large dialysis partner’s network. 

Originally launched in hospitals in April 2024 and subsequently extended to outpatient settings in July, the therapy is now reaching significantly more patients, which is at least 50% more than earlier projections. 

CorMedix expects to see only a slight increase in revenue in June, with more growth later this year.

Funds from the offering will be used for general corporate purposes, including R&D, working capital, and other strategic opportunities such as acquisitions or partnerships.

DefenCath, which was approved by the FDA late in 2023, is designed to help prevent bloodstream infections in dialysis patients who use central venous catheters. 

CorMedix is also preparing to launch additional studies of the drug in pediatric and TPN (total parenteral nutrition) patients before the end of the year.

Following the commercial update, Needham raised its price target on CorMedix to $20 from $15 and maintained a ‘Buy’ rating, citing the larger-than-expected LDO rollout as a key driver. 

The firm noted that this growth is critical for qualifying under Medicare’s transitional payment model (TDAPA) in 2026.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid a 157% surge in 24-hour message volume.

One user said the stock might see early downside pressure but expected it to rebound above $12.50–$13 by the end of next week.

Another user viewed the pullback as a long-term buying opportunity, noting that the company already holds significant cash reserves and that the new funding further strengthens its position. 

They said the proceeds could help CorMedix scale inventory or broaden use cases for DefenCath.

The stock has risen 82% so far in 2025.

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