Ardelyx’s Strong Commercial Execution and Growth Prospects Support Buy Rating Despite Challenges

Leerink Partners analyst Roanna Ruiz reiterated a Buy rating on Ardelyx (ARDX – Research Report) on May 2 and set a price target of $10.00.

Roanna Ruiz’s rating is based on Ardelyx’s solid commercial execution despite facing challenges in the first quarter, such as the seasonal contraction in the IBS-C market and the loss of Medicare Part D coverage for Xphozah. The company has maintained its guidance for Ibsrela, showing strong momentum with expected revenues between $240-250M for 2025. Additionally, management has effectively navigated the Medicare Part D transition for Xphozah, with positive indicators in the non-Medicare segments.
Furthermore, Ardelyx’s management has reaffirmed their long-term peak sales targets, citing growth drivers such as increased clinical conviction among prescribers and an upsized sales force. The company also maintains a robust cash position, providing flexibility for continued commercial investment and business development opportunities. These factors, despite a slight reduction in the price target, support the Buy rating given by Roanna Ruiz.

In another report released on May 2, BTIG also reiterated a Buy rating on the stock with a $14.00 price target.