Momentum Stock Watch: Ardelyx, Inc. (ARDX)

Company Profile:

Ardelyx, Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of minimally systemic therapeutic drugs that work in the gastrointestinal (GI) tract to treat GI and cardio-renal diseases. The Company operates through research, development and commercialization of biopharmaceutical products segment. It has discovered and designed its lead product candidate, tenapanor, which is a minimally systemic small molecule that acts locally in the GI tract to inhibit the sodium transporter sodium-hydrogen exchanger 3 (NHE3) and reduce sodium and phosphorus uptake from the gut. It is evaluating tenapanor in over two pivotal Phase III clinical studies in patients with constipation-predominant irritable bowel syndrome (IBS-C). It is developing RDX022 for the treatment of hyperkalemia. RDX022 is its oral, non-absorbed potassium-binder. Its development programs also include RDX009 Program, RDX013 Program and RDX011 Program. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was founded in 2007 and is headquartered in Fremont, California.

Recent News:

The company recently announced positive End-of-Phase 2 (EoP2) meeting with the U.S. Food and Drug Administration (FDA) for tenapanor for the treatment of hyperphosphatemia in end-stage renal disease (ESRD) patients on dialysis.

Net loss for the second quarter of 2016 was $28.6 million, or $0.83 per basic and diluted share, compared to a net income of $9.0 million, or $0.43 per basic and $0.42 diluted share for the second quarter of 2015.

On July 15, 2016, the company has entered into an agreement to sell shares of its common stock for aggregate gross proceeds of approximately $110 million in a private placement.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ARDX’s strengths can be seen in its strong growth and better efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 55.68 with positive bias. We rate Ardelyx, Inc. (ARDX) a STRONG BUY.