ARDX Stock Is Down Pre-Market After Q4 Earnings Miss, So Why Did This Firm Just Hike Price Target By 80%?

• H.C. Wainwright analysts noted that they are “encouraged” by Ardelyx's new patent, which expires in November 2042.
• Ardelyx announced that the U.S. Patent and Trademark Office had issued a patent for oral formulations of Tenapor, including its commercial formulations Ibsrela and Xpozah.
• The company said during its earnings announcement that the FDA has now listed both Ibsrela and Xpozah in its Orange Book.

Ardelyx Inc. (ARDX) shares are down nearly 8% in Friday’s pre-market session after the company’s fourth-quarter (Q4) earnings fell short of Wall Street expectations.

However, analysts at H.C. Wainwright have hiked their price target for Ardelyx shares by 80%, increasing it to $18 from $10. The firm maintained its ‘Buy’ rating on the stock.

H.C. Wainwright analysts noted that they are “encouraged” by Ardelyx being granted a new patent with expiration in November 2042.

What Is The Ardelyx Patent For?

Ardelyx announced that the U.S. Patent and Trademark Office had issued a patent for oral formulations of Tenapor, including its commercial formulations Ibsrela and Xpozah.

During an update earlier this month, Ardelyx stated that it will submit the patent to the U.S. Food and Drug Administration (FDA) for listing in its Approved Drug Products list, known as the Orange Book.

The company said during its earnings announcement that the FDA has now listed both Ibsrela and Xpozah in the Orange Book.

Ibsrela is a commercial formulation of Tenapor that is used in the treatment of irritable bowel syndrome with constipation. Xpozah is used to lower phosphate levels in the blood, mainly in people with chronic kidney disease on dialysis.

“This is an important step in extending protections for our portfolio of first-in-class medicines in therapeutic areas where there continues to be significant unmet patient need,” said Ardelyx CEO Mike Raab.

Ardelyx’s Q4 Miss

Ardelyx reported its Q4 results on Thursday, with earnings per share (EPS) at $0.0 on revenue of $125.2 million. Wall Street analysts expected an EPS of $0.01 on revenue of $118.05 million, according to Stocktwits data.

The company said it expects full-year 2026 revenue from Ibsrela to be in the $410 million to $430 million range, while Xpozah revenue is estimated at $110 million to $120 million.

How Did Stocktwits Users React?

Retail sentiment around Ardelyx trended in the ‘extremely bullish’ territory at the time of writing, with message volumes at ‘high’ levels.

One user said that, historically, Ardelyx’s management has tended to underpromise and overdeliver. “Long-term thesis remains intact,” they said.

ARDX stock is up 16% year-to-date and 6% over the past 12 months.

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