CRMD

CorMedix has transformed from a serial cash-burner into a genuinely profitable, cash-generating pharma in a single year: FY2025 revenue of $312M (+617%), operating income of $150M (48.2% operating margin), $175M of operating cash flow, and 88.5% gross margins on its lead product DefenCath — the first and only FDA-approved antimicrobial catheter-lock solution, shown to cut CRBSI risk by up to 71%. On trailing figures the stock looks conspicuously cheap: 4.3x earnings, 2.2x sales, 40.2% ROE, and a balance sheet carrying $145M cash against a modest 1.04x liabilities/equity. That is a rare combination of growth, margin, and cheapness.

The catch is that the trailing numbers overstate the run-rate. Two things inflate FY2025: DefenCath launched under Medicare's TDAPA add-on, which reimbursed at ~100% of ASP, and net income of $163M exceeds operating income of $150M — implying a non-operating/tax benefit (consistent with the accumulated deficit of -$176.6M being drawn down), so the $2.04 EPS is not a clean recurring number. Critically, MD&A states TDAPA transitions on July 1, 2026 (i.e., yesterday) into a post-TDAPA Add-On phase paying just $2.37 in Q3/Q4 2026, and management explicitly expects 'a corresponding reduction to net pricing for DefenCath in the third and fourth quarters of 2026.' So the very near term earns less than FY2025 implies.