Ardelyx downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded Ardelyx to Neutral from Overweight with a price target of $7, down from $15, after the “surprise revelation” that management has decided not to apply for the TDAPA payment adjustment for Xphozah beginning next year. The decision itself is “reason enough for concern,” but the rationale behind it – that CMS is now signaling its intent to severely restrict access to Xphozah and that Ardelyx is gearing up for a major fight in this regard – makes the Xphozah outlook “uncertain enough such that we can no longer recommend the stock,” the analyst tells investors.