Piper Sandler reiterated an Overweight rating and a $16.00 price target for Ardelyx, Inc. (NASDAQ: ARDX), citing the commercial trajectory of Ibsrela as an important driver for the stock's outlook. The shares are trading at $5.62, down from $6.74 in the prior session, leaving a substantial gap between the market price and both Piper Sandler's target and the broader analyst consensus range of $13 to $19.
Last month Ardelyx pre-released fourth-quarter 2025 revenues for its two marketed products, Ibsrela and Xphozah, and issued product revenue guidance for fiscal 2026. The company reiterated its fiscal 2026 guidance for Ibsrela at $410 million to $430 million and for Xphozah at $110 million to $120 million. Over the last twelve months the company generated $407.32 million in revenue, representing 22% year-over-year growth, and reported a current ratio of 4.31, signaling robust near-term liquidity.
Management updated its multi-year growth expectations for Ibsrela, now projecting $1 billion in revenue in 2029 - a timing that the company says is approximately four years earlier than prior expectations. Street consensus for fiscal 2026 Ibsrela revenue stands at $411.3 million, while Piper Sandler models $418.5 million for the same period.
Alongside revenue guidance, Ardelyx provided operating expense guidance that anticipates a 25% year-over-year increase in combined research and development and selling, general and administrative expenses. Piper Sandler adjusted its financial model to reflect the higher expense trajectory.
The company also disclosed details about the Phase 3 trial design for Ibsrela in chronic idiopathic constipation and outlined aspects of its intellectual property strategy. Separately, Ardelyx reported a significant patent development: the U.S. Patent and Trademark Office granted a new formulation patent for tenapanor that extends its exclusivity through 2042.
Financial results for fiscal 2025 showed meaningful momentum for Ibsrela, which produced $274 million in revenue for the year, a 73% increase compared with the prior year. In the fourth quarter alone Ibsrela contributed $87 million, a 10% rise versus the prior quarter, consistent with the company's guidance.
In the analyst community other firms reacted to the company's updates as well. H.C. Wainwright raised its price target on Ardelyx to $18 while maintaining a Buy rating, and Raymond James reiterated a Strong Buy rating with a $19 price target.
Ardelyx has initiated a Phase 3 clinical trial for Ibsrela in patients with chronic idiopathic constipation, aiming to enroll approximately 700 patients with a 26-week treatment period to evaluate safety and efficacy of tenapanor.
There have also been reports of potential strategic interest from Zydus Life, which may be considering an acquisition of a controlling stake in Ardelyx or the purchase of key molecules from the company's portfolio; neither Ardelyx nor Zydus Life has commented on these reports.
Note on coverage - Ardelyx is included within a broad universe of U.S. equities covered by comprehensive professional research reports that offer visual analysis and expert commentary for investors seeking deeper context.