Ardelyx Inc (NASDAQ:ARDX) investors have a smile on their faces Wednesday afternoon, after the drug maker reported positive results from T3MPO-2, its second Phase 3 study of tenapanor for irritable bowel syndrome with constipation (IBS-C). The study hit statistical significance for the primary endpoint and all secondary endpoints evaluated for the topline results and demonstrated the ability to normalize bowel movements. The combined responder response at 6 of 12 weeks (primary endpoint) was 36.5% versus 23.7% for placebo, well-above the results generated in T3MPO-1.
Ardelyx shares reacted to the news, jumping over 30% to $7.20 in after-hours trading. ARDX has a 1-year high of $16.30 and a 1-year low of $4.05. The stock’s 50-day moving average is $5.44 and its 200-day moving average is $7.04.
Cantor analyst Mara Goldstein commented, “Because of a positive second Phase III trial for tenapanor in IBS-C, we think investors will begin to re-evaluate tenapanor as a viable commercial drug for IBSC. Although the results of the first trial weighed heavily on the shares, the second trial, a 26-week study, yielded results that point to reasonable efficacy and an acceptable tolerability profile. The IBS-C market, in spite of new drugs, is still underserved, in our view, and we believe tenapanor will be able to gain share. With confirmatory data now in hand, we see opportunities for the company to explore partnerships.”
In reaction, Goldstein reiterated a Buy rating on ARDX stock, with a price target of $12, which implies an upside of 122% from today’s closing price. (To watch Goldstein’s track record, click here)
All analysts on the street voice Goldstein’s bullish forecast for the biotech firm. With 6 back-to-back buy ratings in the last three months, TipRanks analytics showcase ARDX as a Buy. Meanwhile the average analyst price target of $15.60 suggests the stock still has upside potential of nearly 108% from the current share price for the next 12 months.
Ardelyx operates as a clinical-stage biopharmaceutical company. It engages in the discovery, development, and commercialization of minimally-systemic, small molecule therapeutics that work exclusively in the gastrointestinal, tract to treat gastrointestinal and cardio-renal diseases. The company’s products include Tenapanor, RDX002, RDX009 and RDX013.