Ardelyx Inc. (NASDAQ:ARDX)
Shares of Ardelyx Inc. (NASDAQ:ARDX) gained 36.11% in after-hours of trading, after the late-stage company said its experimental drug for irritable bowel syndrome met its primary endpoint. According to the drug developer, Tenapanor met the main goal of reducing abdominal pain and increasing bowel improvements.
IBS-C Treatment Opportunity
The positive clinical trial results could have a significant impact on the stock, especially after the Chief Executive Officer, Mike Raab claimed the results are a game changer for patients with IBS-C. Shares of Ardelyx are in dire need of a catalyst after its price edge lower after coming under pressure in May. The stock is already down by more than 50% as it continues to trade at multi-year lows.
Investors’ confidence on the stock has taken a hit this year. However, the positive Tenapanor clinical trial results could be the catalyst to renew interest, given that the condition affects more than 11 million people across the United States.
“Based on tenapanor unique mechanism of action, which relies upon the inhibition of sodium absorption, and the exciting data reported today, tenapanor has the potential to be an important advancement and a new treatment option for patients suffering from IBS-C,” said William Chey, M.D., University of Michigan.
The clinical trial results indicate that Tenapanor has significant potential which increases the chances of Ardelyx Inc. (NASDAQ:ARDX) finding the ideal partner to bring it to market. Buoyed by the positive results, Ardelyx plans to submit, in the second half of next year, a New Drug Application (NDA) with the U.S Food and Drug Administration (FDA) for the treatment of IBS-C.
Separately, Ardelyx Inc. (NASDAQ:ARDX) completed a strategic review of its operations in the second quarter as it sought to position itself for multiple opportunities with its late-stage portfolio. The review process has resulted in the prioritization of resources to focus on upcoming milestones for late stage programs. The company has also reduced its workforce by 28%.
Thanks to cost-saving initiatives, Ardelyx Inc. (NASDAQ:ARDX) remains on track to extend its operating runaway to the end of 2018. During the quarter, the company reported a net loss of (-$25.7) million or (-$0.54) cents a share, compared to a net loss of (-$28.6) million reported a year earlier.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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