• Total Revenue: $74.1 million, a 61% increase from the previous year.
• IBSRELA Net Sales Revenue: $44.4 million, a 57% increase year-over-year.
• XPHOZAH Net Sales Revenue: $23.4 million, a 55% increase year-over-year, excluding a one-time $3.8 million returns reserve release, the growth was 30%.
• Gross Net Deduction for IBSRELA: 34.8% for the quarter.
• Gross Net Deduction for XPHOZAH: Approximately 18%, excluding the returns reserve release, it was approximately 32%.
• Research and Development Expenses: $14.9 million, up from $10.6 million the previous year.
• Selling, General and Administrative Expenses: $83.2 million, compared to $53 million the previous year.
• Net Loss: Approximately $41.1 million or $0.17 per share, compared to a net loss of $26.5 million or $0.11 per share the previous year.
• Cash, Cash Equivalents, and Short-term Investments: $214 million as of March 31, 2025.
• Milestone Payment: $5 million from Fosun Pharma for the approval of tenapanor in China.

• Warning! GuruFocus has detected 4 Warning Signs with ARDX.

Release Date: May 01, 2025

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

Positive Points

• Ardelyx Inc (NASDAQ:ARDX) reported a significant revenue growth of 61% year-over-year, reaching $74 million in the first quarter of 2025.
• IBSRELA showed a 57% increase in net sales revenue compared to the previous year, indicating strong demand and market penetration.
• XPHOZAH achieved a 30% revenue growth year-over-year, excluding one-time adjustments, demonstrating its importance in managing phosphorus levels for patients.
• The company reaffirmed its 2025 guidance of $240 million to $250 million in net sales for IBSRELA, with a clear path to achieving over $1 billion in peak annual net sales.
• Ardelyx Inc (NASDAQ:ARDX) maintained a strong cash position with $214 million in cash, cash equivalents, and short-term investments as of March 31, 2025, supporting its ongoing operations and strategic initiatives.

Negative Points

• The loss of Medicare Part D coverage for phosphate-lowering therapies has caused significant disruption in the dialysis market, affecting XPHOZAH's market dynamics.
• The company experienced a net loss of approximately $41.1 million in the first quarter, compared to a net loss of $26.5 million in the same period last year.
• Research and development expenses increased to $14.9 million, reflecting higher engagement with scientific and medical communities.
• Selling, general, and administrative expenses rose to $83.2 million, up from $53 million in the prior year, due to expanded commercial activities and corporate infrastructure growth.
• Ardelyx Inc (NASDAQ:ARDX) has not yet provided formal revenue guidance for XPHOZAH due to the fluid market environment and ongoing access complexities.

Q & A Highlights

Q: For the IBSC market, do you expect this to improve as you go through the second quarter and beyond versus the contraction that you historically see in the first quarter? A: Michael Raab, President, CEO: Yes, the IBSC market typically contracts in the first quarter, but we remain optimistic. We had our highest prescription demand quarter in Q4, and we maintained strong momentum in Q1, which gives us confidence for improvement in Q2 and beyond.

Q: Could you explain the return reserve and how that impacts sales and what that could look like going forward? A: Justin Renz, CFO: Our returns reserve was initially set up at launch. Given zero returns and limited downstream distribution, it was no longer appropriate to carry this reserve. This change will modestly improve our gross net prospectively.

Q: What are you targeting for your long-term gross to net for XPHOZAH at steady state? A: Justin Renz, CFO: It's still early, but we had a 32% gross to net in Q1. Generally, our guidance of 30%, plus or minus 5%, is likely to hold true going forward.

Q: How do you reconcile the $44 million in revenue for IBSRELA with expectations based on scripts? A: Eric Foster, Chief Commercial Officer: Net sales can be impacted by market dynamics such as market contraction, prior authorization renewals, and wholesaler buying patterns. Despite these factors, we ended Q1 with strong momentum and remain confident moving into Q2.

Q: What metrics are you monitoring to assess the impact of the newly expanded IBSRELA field force? A: Eric Foster, Chief Commercial Officer: We monitor increases in activity, new and total riders, and new and refill prescriptions. Q1 was our second highest demand quarter, showing significant increases in these metrics, which supports our confidence in meeting peak revenue expectations.

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