Ardelyx Reports Mixed Q2 Results; Shares Decline 5.3%

Shares of biopharmaceutical company Ardelyx, Inc. (ARDX) declined 5.3% in Friday’s trading session to close at $1.41 as the company reported mixed results for the quarter ended June 30, 2021.

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Ardelyx reported quarterly revenues of $1.3 million, which denotes a 28.5% year-over-year fall. The decline can be attributed to the significant degrowth witnessed in Licensing revenue to $3 million from the prior year’s figure of $706 million. However, the figure surpassed the consensus estimate of $0.78 million.

The company reported a loss per share of $0.45, which is wider than the previous year’s figure of $0.28. Moreover, the figure was wider than the consensus estimate of a loss of $0.36 per share.

The company ended the June quarter with total cash, cash equivalents and short-term investments balance of $171.8 million. (See Ardelyx stock chart on TipRanks)

Recently, Wedbush analyst Laura Chico reiterated a Hold rating on the stock. The analyst, however, lowered the price target from $3 to $2, which implies upside potential of 38.9% from current levels.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 4 Buys and 3 Holds. The average Ardelyx price target of $3.63 implies that the stock has upside potential of 152.1% from current levels. Shares have declined about 75.6% over the past year.