Why Ardelyx Stock Is Dropping

Ardelyx, Inc. ARDX shares are trading lower Tuesday after the company announced it has chosen not to apply to include XPHOZAH in the Centers for Medicare & Medicaid Services End-Stage Renal Disease (ESRD) Prospective Payment System (PPS) Transitional Drug Add-on Payment Adjustment.

The Details:

Ardelyx said its analysis of the CMS policy to include oral-only medicines in the PPS and the calendar year 2025 ESRD PPS Proposed Rule released on June 27, revealed that the policy and the manner in which CMS intends to implement it are likely to cause significant restrictions on the use of XPHOZAH for all patients because it interferes with the essential and appropriate shared decision-making between healthcare professionals and their patients.

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"We have carefully and thoughtfully considered the potential impact of CMS’s decision to add XPHOZAH into the Medicare PPS and have determined that even during the TDAPA period, the restrictions placed on XPHOZAH would be such that patient access to this novel therapy would be effectively eliminated for all patients. We believe that the proposed bipartisan legislation extending the exclusion of oral-only medications from the Medicare ESRD PPS is the best option to ensure continued patient access, and we call on Congress to pass the bill," commented Mike Raab, president and CEO of Ardelyx.

Last week, Ardelyx presented data detailing educational needs related to irritable bowel syndrome with constipation (IBS-C) across healthcare disciplines. The data revealed differences between nurse practitioners (NPs)/physician assistants (PAs) and physicians, in their choice of IBS-C diagnostic criteria and testing methodologies, tendency to refer patients to specialists and approach to assessing pain levels. 

Will ARDX Stock Go Up?

When trying to assess whether or not Ardelyx will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $14.50 on Ardelyx. The Street high target is currently at $15 and the Street low target is $14. Of all the analysts covering Ardelyx, 6 have positive ratings, no one has neutral ratings and no one has negative ratings.

In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Ardelyx have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Ardelyx is 82.97% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Ardelyx, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

ARDX Price Action: According to Benzinga Pro, Ardelyx shares are down 20.9% at $5.99 at the time of publication Tuesday.

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