In a report released yesterday, Julian Harrison from BTIG maintained a Buy rating on Ardelyx, with a price target of $17.00.
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Julian Harrison has given his Buy rating due to a combination of factors that underscore both Ardelyx’s current commercial momentum and its long-term growth prospects. He highlights the initiation of the Phase 3 ACCEL trial for Ibsrela in chronic idiopathic constipation, noting that success in this large, underpenetrated indication could significantly expand Ibsrela’s addressable market beyond IBS-C, where many patients remain dissatisfied with existing secretagogue therapies. The differentiated mechanism of action of Ibsrela versus current GCC agonists and the sizable CIC and IBS-C patient pools together support a robust, sustainable revenue opportunity as the product lifecycle progresses.
Harrison also points to Ardelyx’s strong recent financial performance and guidance, including substantial year-over-year revenue growth for Ibsrela, rising Xphozah sales, and management’s outlook for Ibsrela to exceed $1 billion in peak sales with continued growth through loss of exclusivity. The newly extended intellectual property protection to 2041 further strengthens the long-term value of both Ibsrela and Xphozah, while advancement of the next-generation NHE3 inhibitor RDX10531 adds additional pipeline optionality. Combined with a solid cash position to fund ongoing development and commercialization efforts, these factors support his view that the current valuation does not fully reflect Ardelyx’s earnings power and pipeline potential, justifying a Buy recommendation.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $13.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARDX in relation to earlier this year.