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1. Company Snapshot

1.a. Company Description

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally.The company's lead product candidate is tenapanor, which has completed Phase III clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase III clinical trial to control serum phosphorus in adult patients with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia.It is also developing RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among certain patients with kidney and/or heart disease; and RDX020, an early-stage program in metabolic acidosis, a serious electrolyte disorder in patients with CKD.


The company has agreements with Kyowa Kirin in Japan, Fosun Pharmaceutical Industrial Development Co. Ltd.in China, and Knight Therapeutics, Inc.in Canada for the development and commercialization of tenapanor in their respective territories.


The company was formerly known as Nteryx, Inc.and changed its name to Ardelyx, Inc.in June 2008.


Ardelyx, Inc.was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

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1.b. Last Insights on ARDX

Ardelyx's recent performance was negatively impacted by rising costs, including increased SG&A expenses and looming debt obligations. The company's limited pipeline and uncertain growth prospects, particularly with Xphozah's reimbursement issues and modest growth from Ibsrela, also contributed to the challenges. Additionally, the loss of Medicare Part D coverage for Xphozah limits revenue potential, despite the company's $750 million annual sales guidance.

1.c. Company Highlights

2. Ardelyx's Q3 2025 Earnings: Strong Revenue Growth and Pipeline Advancements

Ardelyx reported a robust financial performance in Q3 2025, with product revenue reaching $105.5 million, a 15% year-over-year growth. IBSRELA generated $78.2 million in revenue, a 92% increase from the previous year, while XPHOZAH generated $27.4 million, a 9% increase from Q2. The company's net loss was approximately $1 million or less than $0.01 per share, with an actual EPS of -0.00401, beating estimates of -0.06. The strong revenue growth was driven by increased adoption among physicians and patients, with over 75% of patients on current therapies experiencing symptoms.

Publication Date: Nov -17

📋 Highlights
  • IBSRELA Revenue Surge:: Generated $78.2 million in Q3 2025, a 92% YoY increase, with annual guidance raised to $270–275 million.
  • Strong Overall Revenue Growth:: Total product revenue reached $105.5 million for Q3 2025, reflecting 15% YoY growth.
  • ARDS-10531 Launch:: New NHE3 inhibitor program announced, targeting hypertension, heart failure, and diabetes with preclinical data.
  • Strong Financial Position:: Cash and investments totaled $242.7 million, supporting pipeline development and growth initiatives.
  • Market Valuation Mismatch:: $1.2 billion market cap despite $400 million annualized sales and $7.5 billion long-term guidance, signaling potential undervaluation.

Revenue Growth Drivers

The growth in IBSRELA sales is attributed to the company's established sales force and marketing initiatives. IBSRELA is indicated for first-line therapy, but the company has positioned it as second and third line to maximize revenue. The company has raised its guidance for IBSRELA revenue to $270-275 million for the year, and remains confident in its $1 billion peak sales guidance. Analysts estimate next year's revenue growth at 27.5%.

Pipeline Advancements

Ardelyx announced a new development program, ARDX-10531, a next-generation NHE3 inhibitor, which could potentially treat various indications, including hypertension, heart failure, and diabetes. The program aims to leverage the unique characteristics of the molecule to improve treatment options. The company's strong balance sheet, with cash, cash equivalents, and short-term investments totaling $242.7 million, enables it to invest in new opportunities.

Valuation and Outlook

Ardelyx's current valuation metrics indicate a P/S Ratio of 3.52 and an EV/EBITDA of -48.24. With a market cap of $1.2 billion despite $400 million in annualized sales and a $7.5 billion long-term guidance, the market may be underestimating the company's long-term potential. The company expects tailwinds for both IBSRELA and XPHOZAH in 2026, driven by increased adoption and penetration.

Business Development Opportunities

Ardelyx is looking for business development opportunities in the GI space, and considers early-stage Phase I preclinical and Phase III plug-and-play assets that are complementary to its commercial portfolio. The company prioritizes unique and special opportunities that align with its commercialization approach, and remains focused on driving sustainable growth and creating long-term value for shareholders.

3. NewsRoom

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Ardelyx, Inc. (NASDAQ:ARDX) Receives Average Recommendation of “Moderate Buy” from Brokerages

Nov -27

Source: defenseworld.net

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Real-World Evidence Studies of XPHOZAH® (tenapanor) Demonstrate Patient Satisfaction and Reduction in Serum Phosphate with XPHOZAH in Data Presented at ASN Kidney Week

Nov -07

Source: globenewswire.com

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Ardelyx to Participate at the Jefferies Global Healthcare Conference in London

Nov -05

Source: globenewswire.com

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Ardelyx: Impressive Q3 Record Growth - Why I Buy

Nov -05

Source: seekingalpha.com

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Ardelyx: A Long Overdue Rally

Nov -04

Source: seekingalpha.com

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Ardelyx President and Chief Executive Officer Mike Raab to Participate in the Wedbush Rewind American Society of Nephrology 2025 Investor Conference

Nov -04

Source: globenewswire.com

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Ardelyx Target of Unusually Large Options Trading (NASDAQ:ARDX)

Nov -02

Source: defenseworld.net

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10,151 Shares in Ardelyx, Inc. $ARDX Acquired by Brighton Jones LLC

Nov -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.97%)

6. Segments

Biopharmaceutical Products

Expected Growth: 8.97%

Ardelyx's biopharmaceutical products are driven by increasing demand for novel treatments, growing prevalence of chronic kidney disease and cardiorenal diseases, and the company's strong pipeline of innovative products, including tenapanor and RDX013. Additionally, strategic partnerships and collaborations are fueling growth, with a focus on expanding into new markets and indications.

7. Detailed Products

Tenapanor

Tenapanor is a minimally absorbed, oral, gut-restricted inhibitor of the sodium/hydrogen exchanger 3 (NHE3), in development for the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic kidney disease (CKD).

RDX7675

RDX7675 is a novel, oral, non-absorbed phosphate binder in development for the treatment of hyperphosphatemia in patients with CKD on dialysis.

8. Ardelyx, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ardelyx, Inc. has a moderate threat of substitutes due to the availability of alternative treatments for kidney disease and cardiovascular disease.

Bargaining Power Of Customers

Ardelyx, Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of alternative options for patients.

Bargaining Power Of Suppliers

Ardelyx, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for raw materials and manufacturing services.

Threat Of New Entrants

Ardelyx, Inc. has a high threat of new entrants due to the growing demand for kidney disease and cardiovascular disease treatments and the availability of funding for biotech startups.

Intensity Of Rivalry

Ardelyx, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.13%
Debt Cost 8.26%
Equity Weight 74.87%
Equity Cost 8.26%
WACC 8.26%
Leverage 33.56%

11. Quality Control: Ardelyx, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Puma Biotechnology

A-Score: 5.6/10

Value: 7.4

Growth: 6.1

Quality: 8.7

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Ligand Pharmaceuticals

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Growth: 4.4

Quality: 3.9

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iTeos Therapeutics

A-Score: 4.6/10

Value: 7.8

Growth: 3.6

Quality: 6.2

Yield: 0.0

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Amylyx Pharmaceuticals

A-Score: 4.3/10

Value: 8.2

Growth: 3.6

Quality: 7.2

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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Ardelyx

A-Score: 3.8/10

Value: 6.8

Growth: 6.2

Quality: 4.7

Yield: 0.0

Momentum: 3.0

Volatility: 2.0

1-Year Total Return ->

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Applied Therapeutics

A-Score: 2.8/10

Value: 6.2

Growth: 6.9

Quality: 3.3

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.98$

Current Price

5.98$

Potential

-0.00%

Expected Cash-Flows