Patient Demand Drives Ardelyx's Constipation Drug Success Amid IBS-C Treatment Gap, Says Analyst

Raymond James initiated coverage of Ardelyx Inc ARDX, noting the company's two early-stage launches underway for the same molecule with differentiated pricing:

• Ibsrela in year two of its launch (FY23 guidance $77 million at midpoint) in irritable bowel syndrome with predominant constipation (IBS-C).
• Newly approved Xphozah was launched in hyperphosphatemia this quarter after a successful post-CRL appeal process.

The analysts Ryan Deschner and Steven Seedhouse initiate with a Strong Buy rating and a price target of $12.

Although Ardelyx faced prior authorization requirements for Ibsrela access, the company introduced Ibsrela into the well-established IBS-C market and implemented its strategy to attain consistent market penetration by ensuring high levels of patient access. 

The prolonged absence of effective treatment choices for IBS-C patients compelled physicians to contribute to the demand for Ibsrela. 

Considering Ardelyx's successful validation of its commercial strategy through the positive reception of Ibsrela, the forthcoming launch of Xphozah appears set for a significantly smoother trajectory compared to its challenging regulatory journey. Xphozah has obtained clean label without significant safety issues or boxed warnings. 

This achievement is expected to facilitate access for a considerable portion of patients (up to approximately 77%) with insufficient responses to phosphate binders, allowing them to acquire access through prior authorization.

Price Action: ARDX shares are up 5.57% at $6.239 on the last check Monday.