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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on Ardelyx, Inc (NASDAQ:ARDX), according to a research note published Monday. The company, currently valued at $1.02 billion, has shown strong momentum with an 8.93% return over the past week. InvestingPro data reveals that 2 analysts have recently revised their earnings expectations upward for the upcoming period.
The firm projects Ardelyx’s key growth product Ibsrela will exceed consensus expectations in the second quarter, forecasting $64 million in sales compared to the FactSet consensus of $57 million, representing a potential beat of more than 10%.
Cantor Fitzgerald also views Ardelyx’s 2025 Ibsrela guidance of $240-$250 million as conservative based on strong prescription trends observed in the second quarter, which the firm expects to continue through the second half of 2025. The research firm’s own 2025 projection for Ibsrela stands at $260 million.
The note indicates that while Ardelyx’s Xphozah product is beginning to show growth in non-Medicare prescriptions, consensus estimates for the product may need downward revision for the second quarter and beyond. However, Cantor suggests that investor expectations for Xphozah are already lower than consensus.
Cantor Fitzgerald believes any potential miss for Xphozah in the second quarter should have limited impact on the stock at current valuation levels, particularly if consensus estimates aren’t adjusted downward.
In other recent news, Ardelyx, Inc. has been active with several notable developments. The company amended its loan agreement with SLR Investment Corp., allowing for an immediate $50 million draw and options for an additional $100 million in loans. Meanwhile, H.C. Wainwright assumed coverage on Ardelyx with a buy rating, highlighting the company’s successful product sales, including $44.4 million from IBSRELA in the first quarter of 2025. However, Raymond (NSE:RYMD) James downgraded Ardelyx’s stock from "Strong Buy" to "Outperform," citing weaker-than-expected sales for Ibsrela and Xphozah and increased SG&A expenses. Despite this, Ardelyx maintains its 2025 sales guidance, with expectations for Ibsrela between $240 million and $250 million and peak sales for Xphozah at $750 million. In leadership news, Ardelyx appointed Mike Kelliher as Chief Business Officer and James P. Brady as Chief Human Resources Officer. Additionally, Ardelyx presented new data on IBSRELA at the Digestive Disease Week Conference, emphasizing the drug’s benefits for IBS-C patients. The company continues to explore pipeline opportunities, including pediatric trials for tenapanor.
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