Wedbush Has A New Best Idea For 2017: Ardelyx

Wedbush has found a new top pick for 2017: biopharmaceutical company Ardelyx Inc ARDX.

With three programs in Phase 3 of clinical trials, Wedbush sees Ardelyx shares as “dramatically undervalued,” the firm said on Wednesday. With key catalysts ahead of its Q4 release, Wedbush reiterated its Outperform rating and Best Idea for 2017 status on the stock.

“We believe success in any of these programs would attract interest from larger Pharma companies," the analysts wrote, "given key differentiating characteristics that provide competitive advantages over available therapies.”

Upcoming Catalysts

• 1H17 Data from Ph 2b time-of-onset study of RDX7675 in hyperkalemia
• Mid-17 Start of second Ph 3 trial of tenapanor in ESRD
• Mid-17 Data from first Ph 3 IBS-C trial of tenapanor (T3MPO-1)
• YE17 Data from second Ph 3 IBS-C trial of tenapanor (T3MPO-2)

A muted stock response from hyperphosphatemia data, is providing a buying opportunity according to the company, after data was released last week from the first phase three study of its drug tenapanor, used to inhibit sodium uptake in the intestines, showed a significant serum phosphate reduction risk.

Wedbush has a $24 price target on Ardelyx and sees the company as a likely takeout candidate.