Citi, Ladenburg React Positively On Ardelyx's IBS-C Treatment Launch Plans

Citigroup raised the price target on Ardelyx Inc ARDX to $13 from $7, with a Buy rating unchanged.
The update follows the Company's plans to launch Ibsrela (tenapanor) for irritable bowel syndrome with constipation (IBS-C) independently in Q2 2022.
Analyst Yigal Nochomovitz added IBS-C revenues in the U.S. back to his model and noted that his estimates are in line with management's guidance for $500M at peak, which Nochomovitz sees coming in 2029.
He also argues that the Ibsrela launch partially shifts the focus off the formal dispute resolution process with the FDA for hyperphosphatemia and gives Ardelyx another near-term catalyst.
Ladenburg upgraded Ardelyx to Buy from Neutral with a $6 price target.
Analyst Matthew Kaplan believes the product for IBS-C could generate greater than $400 million in revenues by 2026.
Kaplan also notes that Ardelyx announced plans to file a Formal Dispute Resolution Request during Q4 to appeal the CRL for tenapanor for hyperphosphatemia. He looks forward to the filing of the FDRR and more detail on the path forward for this indication.
Related Link: Ardelyx's Tenapanor Application For Chronic Kidney Disease Receives FDA Response Letter.
Price Action: ARDX shares are up 22.8% at $1.40 during the premarket session on the last check Wednesday.

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