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On Friday, H.C. Wainwright maintained its Neutral rating on Ardelyx, Inc (NASDAQ:ARDX) with a steady price target of $5.50. Analyst Ed Arce provided an update following Ardelyx’s latest financial report, which included fourth-quarter 2024 net sales of its product XPHOZAH amounting to $57.2 million, marking an 11.1% increase from the third quarter of the same year. The full-year sales for XPHOZAH reached $160.9 million. According to InvestingPro data, the company has demonstrated impressive revenue growth of 168% over the last twelve months, with total revenue reaching $333.6 million. The company maintains strong liquidity with a current ratio of 4.06, indicating robust short-term financial health.
Despite the reported growth, Ardelyx faces challenges ahead. The company’s management has set a target for XPHOZAH to achieve annual U.S. net sales revenue of $750 million before its patent expires in April 2034. However, the drug’s outlook is clouded by uncertainty due to its unavailability under Medicare Part D starting from January 1, 2025. InvestingPro analysis suggests the company is currently undervalued, though investors should note that analysts do not expect profitability this year. Get access to 8 additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
Arce’s commentary focused on the immediate future, estimating the first-quarter 2025 net sales revenue for XPHOZAH based on the most recent prescription data. The reiteration of the Neutral rating and the $5.50 price target reflects a cautious outlook on the company’s near-term and long-term prospects.
Ardelyx’s fourth-quarter performance and the subsequent analyst assessment come at a time when the company is navigating through significant changes in the market landscape, particularly with the Medicare Part D exclusion. The firm’s analysis indicates a watchful approach as Ardelyx adapts to these changes and strives to meet its ambitious sales goals in the coming years.
In other recent news, Ardelyx Inc . reported its fourth-quarter 2024 earnings, exceeding market expectations with an earnings per share (EPS) of $0.02, surpassing the anticipated $0.01. The company also outperformed revenue forecasts, reporting $116.1 million compared to the expected $108.58 million. Despite these positive financial results, Ardelyx’s stock experienced a decline of 7.23% in premarket trading, as investors expressed concerns over future guidance and market conditions. Strong sales growth for its IBZRILLA and EXPOSA products contributed significantly to the revenue beat, with IBZRILLA showing a 32% quarter-over-quarter growth. Ardelyx’s strategic focus on expanding its sales force and enhancing communication channels appears to have been effective, as reflected in its robust quarterly performance. Additionally, Ardelyx has set ambitious sales targets for 2025, including a net sales guidance for IBZRILLA of $240 million to $250 million and peak sales of $750 million for EXPOSA before patent expiration. In related developments, the company plans to increase its selling, general, and administrative expenses by approximately $10 million per quarter in 2025 to support growth initiatives. Despite the positive earnings report, analysts and investors remain cautious about broader industry challenges and potential market volatility.
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