• Total Revenue: $98.2 million in Q3 2024, up from $56.4 million in Q3 2023.

• IBSRELA Net Product Sales: $40.6 million in Q3 2024, nearly double from Q3 2023, with 15% growth from Q2 2024.

• XPHOZAH Net Product Sales: $51.5 million in Q3 2024, up from $37.1 million in Q2 2024.

• Gross to Net Deduction for IBSRELA: 30.0% in Q3 2024, consistent with prior quarter.

• Gross to Net Deduction for XPHOZAH: Improved to 19.3% in Q3 2024 from 21.4% in Q2 2024.

• Research and Development Expenses: $15.3 million in Q3 2024, up from $8.6 million in Q3 2023.

• Selling, General, and Administrative Expenses: $65.0 million in Q3 2024, up from $32.7 million in Q3 2023.

• Net Loss: Approximately $800,000 or less than $0.01 per share in Q3 2024.

• Cash Position: $190.4 million as of September 30, 2024, with a pro forma cash balance of over $240 million after drawing $50 million from amended debt agreement.

• Warning! GuruFocus has detected 5 Warning Signs with ARDX.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• IBSRELA recorded a 15% increase in net sales over the second quarter, indicating strong demand and growth.

• XPHOZAH achieved a 39% increase in net sales revenue quarter over quarter, showcasing its successful launch and market acceptance.

• Ardelyx Inc (NASDAQ:ARDX) reported $98.2 million in total revenue during the third quarter, a significant increase from $56.4 million in the same period in 2023.

• The company has a strong cash position with over $240 million, providing financial flexibility for future opportunities.

• The expansion of the IBSRELA sales team was completed, which is expected to drive further growth and adoption.

Negative Points

• There is uncertainty around Medicare coverage for XPHOZAH, which could impact future sales and patient access.

• The company is engaged in a lawsuit against CMS regarding the inclusion of oral-only therapies in the dialysis bundle, which adds legal and regulatory risk.

• Research and development expenses increased to $15.3 million in the third quarter, reflecting higher costs associated with medical engagement and clinical trials.

• Selling, general, and administrative expenses rose to $65.0 million, driven by commercial activities and sales team expansion, impacting profitability.

• Despite strong revenue growth, the company reported a net loss of approximately $800,000 for the third quarter.

Q & A Highlights

Q: What percent of XPHOZAH sales are not part of the Medicare bundle, and how do you plan to expand your product portfolio? Also, when do you expect IBSRELA to reach $1 billion in sales? A: Approximately 40% of XPHOZAH sales are non-Medicare. We are exploring expansion opportunities, led by Mike Kelleher, leveraging our strong balance sheet. As for IBSRELA, it's too early to specify a timeline for reaching $1 billion in sales, especially since we just completed our sales team expansion.