Education
About Us
Working with TipRanks
Follow Us
Ardelyx (ARDX)
NASDAQ:ARDX
Top Page
Ardelyx
(NASDAQ:ARDX)
60Neutral
Positive Factors
Financial Performance
4Q24 was ARDX's first product-driven profitable quarter, and minimal cash impact from operations is expected through FY25.
Market Opportunities
Ibsrela and Xphozah continue to build momentum in large market opportunities with no second-line competition, supporting a clear path to returned profitability.
Negative Factors
Regulatory Challenges
The District Court's dismissal of Ardelyx's lawsuit allows the CMS to include XPHOZAH in the ESRD PPS bundle, which negatively impacts the company's stock.
Ardelyx (ARDX) vs. S&P 500 (SPY)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)3.44M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth168.06%
EPS Growth44.66%
CountryUS
Employees395
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.17
Shares Outstanding238,356,220
10 Day Avg. Volume3,075,243
30 Day Avg. Volume3,438,926
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.74
Price to Cash Flow (P/CF)31.80
P/FCF Ratio31.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.94Price Target Upside101.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Ardelyx Business Overview & Revenue Model
Company DescriptionArdelyx, Inc. is a biopharmaceutical company, which engages in the research, development and commercialization of medicine for the treatment of renal diseases. It focuses on the formulation of programs directed toward treating gastrointestinal and irritable bowel syndrome with constipations. Its product portfolio includes tenapanor, which is an experimental medication that works exclusively in the gut and is in late-stage clinical development. The company was founded by Dominique Charmot, Peter G. Schultz, and Jean M. Frechet on October 17, 2007 and is headquartered in Fremont, CA.
How the Company Makes MoneyArdelyx generates revenue primarily through the commercialization of its proprietary product, tenapanor. The company earns money by selling this medication to healthcare providers and pharmacies, which distribute it to patients. Additionally, Ardelyx may engage in licensing agreements and strategic partnerships to expand its product's reach and enhance its market penetration. Such collaborations can include upfront payments, milestone payments, and royalties based on sales, contributing to the company's revenue streams. Ardelyx's revenue model is heavily reliant on the successful adoption and market acceptance of tenapanor, as well as its ability to establish and maintain strong partnerships within the healthcare and pharmaceutical sectors.
Ardelyx Financial Statement Overview
Summary
Ardelyx demonstrates strong revenue growth, reflecting successful product or service uptake in the biotechnology sector. However, the company faces profitability challenges, with ongoing net losses and negative margins. While the balance sheet is stable, increasing leverage could pose future risks. Cash flow management remains a concern, with reliance on external financing to support business operations. Overall, while growth prospects are promising, financial sustainability needs careful attention.Income Statement
Ardelyx has shown significant revenue growth, increasing from $52.16M in 2022 to $124.46M in 2023, and reaching $333.62M in 2024. However, the company remains unprofitable with a negative net profit margin, as net losses continue, albeit reducing from previous years. The negative EBIT and EBITDA margins indicate ongoing challenges in covering operating costs, impacting profitability.60
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, with total debt increasing but equity also rising. The company's equity ratio is weakening, indicating a potential shift towards more leveraged operations. Despite this, the return on equity remains negative due to consistent net losses. The company's financial position is stable but dependent on managing leverage carefully.55
Neutral
Cash Flow
Despite improvements in operating cash flow, Ardelyx continues to experience negative free cash flow, reflecting ongoing challenges in generating sufficient cash from operations. The operating cash flow to net income ratio indicates some improvement in cash generation relative to net losses, but the need for financing activities to support operations persists.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 333.62M | 124.46M | 52.16M | 10.10M | 7.57M | Gross Profit |
| 283.06M | 106.66M | 48.04M | 9.10M | 7.43M | EBIT |
| -27.95M | -63.28M | -63.76M | -154.35M | -90.78M | EBITDA |
| -16.71M | -55.35M | -60.98M | -150.85M | -85.24M | Net Income Common Stockholders |
| -39.14M | -66.07M | -67.21M | -158.16M | -94.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 250.10M | 184.30M | 123.91M | 116.69M | 186.48M | Total Assets |
| 435.75M | 297.58M | 190.07M | 149.91M | 201.56M | Total Debt |
| 153.44M | 55.98M | 36.46M | 45.50M | 53.32M | Net Debt |
| 88.51M | 34.51M | -59.68M | -26.92M | -37.71M | Total Liabilities |
| 262.46M | 130.76M | 91.74M | 67.30M | 75.45M | Stockholders Equity |
| 173.29M | 166.82M | 98.33M | 82.62M | 126.11M |
| Cash Flow | Free Cash Flow | |||
| -45.82M | -90.06M | -70.10M | -154.42M | -81.76M | Operating Cash Flow |
| -44.81M | -89.72M | -70.04M | -152.55M | -81.44M | Investing Cash Flow |
| -18.32M | -131.25M | 18.41M | 50.95M | -31.44M | Financing Cash Flow |
| 106.59M | 146.29M | 75.34M | 83.00M | 22.78M |
Ardelyx Technical Analysis
Positive
5.44
Price Trends
5.39
Positive
5.38
Positive
5.75
Negative
Market Momentum
-0.02
Negative
50.68
Neutral
64.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDX, the sentiment is Positive. The current price of 5.44 is below the 20-day moving average (MA) of 5.46, above the 50-day MA of 5.39, and below the 200-day MA of 5.75, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARDX.
Ardelyx Risk Analysis
Ardelyx disclosed 50 risk factors in its most recent earnings report. Ardelyx reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ardelyx Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $1.34B | ― | -23.01% | ― | 168.06% | 44.66% | |
53 Neutral | $421.09M | ― | 91.25% | ― | -12.26% | 32.86% | |
49 Neutral | $41.63M | ― | 60.38% | ― | 16.15% | 59.81% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
42 Neutral | $191.32M | ― | -7.31% | ― | -25.21% | 25.06% | |
42 Neutral | $206.96M | ― | -156.42% | ― | -74.04% | 48.16% | |
41 Neutral | $41.98M | ― | -54.72% | ― | -100.00% | -8.52% |
* Healthcare Sector Average
Performance Comparison
ARDX
Ardelyx
5.44
-3.20
-37.04%
AMRN
Amarin
0.40
-0.46
-53.49%
SGMO
Sangamo Biosciences
1.00
0.22
28.21%
AKBA
Akebia Therapeutics
1.93
0.52
36.88%
FGEN
FibroGen
0.46
-1.54
-77.00%
KZR
Kezar Life Sciences
5.86
-3.24
-35.60%
Ardelyx Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -14.47% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Ardelyx demonstrated strong financial growth and successful product launches, particularly with IBSRELA and XPHOZAH, which led to significant revenue increases and a positive financial position. However, challenges such as the loss of Medicare Part D coverage for XPHOZAH and increased operational expenses present potential hurdles. Overall, the positive achievements appear to outweigh the lowlights.Highlights
IBSRELA Growth
IBSRELA reported a more than 32% growth quarter-over-quarter from Q3 of the same fiscal year, demonstrating strong demand and successful sales-force expansion.
XPHOZAH Launch Success
XPHOZAH achieved $57.2 million in net product sales revenue for the fourth quarter, marking an 11% increase over Q3, highlighting its importance in treating hyperphosphatemia.
Strong Financial Position
Ardelyx ended the fiscal year with $250 million in cash, cash equivalents, and short-term investments, an increase from $184.3 million at the end of 2023.
Year-Over-Year Revenue Growth
The company reported total revenues of $333.6 million for 2024, compared to $124.5 million in the prior year, driven by IBSRELA and XPHOZAH sales.
Positive Net Income
Ardelyx reported a net income of approximately $4.6 million for the fourth quarter, compared to a net loss of $28.8 million in the same period of the prior year.
Lowlights
Medicare Part D Coverage Loss for XPHOZAH
XPHOZAH is no longer covered by Medicare Part D, which may affect access for some patients despite efforts to maintain availability through other programs.
Increased SG&A Expenses
Selling, general, and administrative expenses rose to $76.1 million for Q4 2024, up from $47.8 million in the prior year, reflecting increased commercial activities.
Uncertain First Quarter for XPHOZAH
The company could not provide a detailed outlook for XPHOZAH's performance in the first quarter of 2025 due to ongoing market adjustments.
Company Guidance
In the Ardelyx Fourth Quarter and Fiscal Year 2024 earnings call, the company provided guidance on its financial expectations and strategic priorities for 2025 and beyond. The company reported total revenues of $333.6 million for 2024, a significant increase from $124.5 million in the previous year, driven by the growth of IBSRELA and the launch of XPHOZAH. IBSRELA achieved a 32% quarter-over-quarter growth rate in Q4 and is projected to generate between $240 million and $250 million in net product sales revenue in 2025, with a long-term goal of exceeding $1 billion in annual sales prior to patent expiry. XPHOZAH, which achieved $160.9 million in annual sales in 2024, is projected to reach $750 million in annual net sales before patent expiry. The company ended the year with a strong cash position of $250.1 million, bolstered by $49.7 million in proceeds from a term loan agreement, and plans to strategically invest in expanding its commercial and patient services teams to drive continued growth.Ardelyx Corporate Events
Executive/Board Changes
Ardelyx Appoints Joseph Reilly as Principal Accounting Officer
Positive
Nov 18, 2024
The company has announced the appointment of Joseph Reilly as the new Principal Accounting Officer, effective November 15, 2024, succeeding Robert Felsch, who will transition to a senior financial advisor role. With a robust background in finance from Bristol Myers Squibb and Ernst & Young, Reilly is expected to bring extensive expertise to his new position. This leadership change signals the company’s commitment to maintaining financial stability and ensuring seamless transitions within its executive team.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.