CorMedix Inc.: De-Risked, Undervalued, and Firing on All Cylinders

More catheters please

This will be a “best ideas only” bio substack providing actionable, highly digestible and high conviction value to investors focused on quality not quantity. Disclaimer: Nothing in this article (or substack) is considered investment advice and is solely the opinion of the author.

I’ll keep this one short and sweet since I just discovered it, went down a rabbit hole and had to write about it. I think there is a really interesting IRR here and is more ‘medtech’ than biotech which I find compelling for position sizing reasons.

CorMedix Inc. (CRMD) is a biopharmaceutical (bio-med tech?) company centered on addressing life-threatening infectious and inflammatory diseases. The company’s cornerstone asset is DefenCath, a first-in-class antimicrobial catheter lock solution. DefenCath’s formulation combines taurolidine, its primary antimicrobial compound, with heparin, a familiar anticoagulant. The scientific rationale is potent: taurolidine, a derivative of the amino sulfonic acid taurine, induces microbial cell death by compromising cell wall integrity. It also provides added utility by reducing bacterial adhesion and neutralizing bacterial toxins. Initially approved to prevent catheter-related bloodstream infections (CRBSIs) in hemodialysis patients with end-stage renal disease (ESRD), the company has recently executed a strategic pivot. Through the acquisition of Melinta, CorMedix has broadened its commercial footprint, adding a diversified portfolio of marketed anti-infectives, anti-fungals, and cardiovascular assets to its revenue base.