Ardelyx (NASDAQ:ARDX) stock is climbing today after the U.S. Food and Drug Administration (FDA) approved the firm’s treatment for excessive phosphate levels in kidney disease patients. Shares of ARDX are up more than 14% as of this writing.
Called Xphozah, Ardelyx’s drug treats chronic kidney disease (CKD) patients with excessive amounts of phosphorus in their blood. Abnormally high phosphorous levels may trigger “brittle bones, joint pain, muscle cramps and itchy skin,” Reuters reports.
Xphozah will be prescribed to patients on dialysis who either have not responded to or have had a negative reaction to phosphate binder therapies. The latter drugs are currently provided to many CKD patients with elevated phosphorous levels. In fact, according to Seeking Alpha, more than 80% of dialysis patients have been prescribed phosphate binders, yet 43% still have elevated phosphate levels.
Ardelyx expects to make Xphozah, which is taken orally, available to patients next month. The company also previously marketed the drug under a different name as an irritable bowel syndrome with constipation (IBS-C) treatment.
In a Phase 3 trial, when combined with phosphate binders, Xphozah showed the ability to meaningfully reduce phosphate levels in patients more than phosphate binders alone.
What to Watch for Moving Forward
Back in August, Cantor Fitzgerald upgraded ARDX stock to an “overweight” rating, asserting that Wall Street was underestimating Xphozah’s potential peak sales. The investment bank set a $10 price target on shares.
Looking forward, investors should watch for the extent to which doctors are prescribing Xphozah and try to determine whether Ardelyx is likely to become profitable in the coming quarters and years.
On the date of publication, Larry Ramer did not hold (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.
