Ardelyx (NASDAQ:ARDX) stock is soaring higher on Wednesday following an update about the company’s irritable bowel syndrome with constipation (ISB-C) treatment in adults.
The drug goes under the name IBSRELA and Ardelyx is planning to release it during the second quarter of 2022. Ardelyx says it will spend the next few months building up a commercial inventory of the treatment ahead of its release.
According to Ardelyx, there’s massive potential for IBSRELA thanks to the growing market for IBS-C treatments. If the company can capture a subset of these patients representing a mid to high single-digit share of the market, IBSRELA could generate at least $500 million in revenue per year.
Mike Raab, president and CEO of Ardelyx, says the following in the press release sending ARDX stock higher today.
“Over the last five years, the IBS-C market has grown to be sizeable and concentrated, with 9,000 high-writing physicians accounting for approximately 50% of the almost five million prescriptions written annually for drugs indicated for the treatment of IBS-C. This market is ripe for the entry of a novel therapeutic option like IBSRELA, as existing therapies do not adequately address all patient treatment needs.”
It’s worth pointing out that today’s news has ARDX stock experiencing heavy trading. As of this writing, more than 160 million shares of the stock have changed hands. That’s a massive increase over its daily average trading volume of about 4 million shares.
ARDX stock is up 35.5% as of Wednesday morning but is still down 76.2% since the start of the year.
Investors looking for more hot stock market news today are in luck!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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