Shares of Ardelyx (NASDAQ: ARDX) were up 9.5% as of 3:47 p.m. after the biotech company announced better-than-expected third-quarter 2023 results.
Ardelyx's quarterly revenue skyrocketed to $56.4 million from just under $5 million in the same year-ago period. That translated to generally accepted accounting principles (GAAP) net income of $6.6 million, or $0.03 per share, swinging from a loss of $0.14 per share in last year's Q3. Analysts, on average, were expecting a loss of $0.10 per share.
Ibsrela leads the way
Licensing revenue comprised just over $32 million of Ardelyx's top line, while product sales arrived at $22.3 million, with the latter comprised entirely of sales from Ardelyx's first commercialized product, Ibsrela, a novel treatment for irritable bowel syndrome with constipation (IBS-C). Ibsrela sales were also up 22% sequentially from last quarter, reflecting what management described as "a persistent growth pattern" for the drug. Product-supply revenue comprised the remainder of Adelyx's total at $2.1 million.
In addition, Ardelyx has commenced the commercial launch of chronic kidney disease drug Xphozah, which only just received FDA approval on Oct. 17, 2023.
What's next for Ardelyx stock?
Assuming all goes as planned, Ardelyx expects to have product in channel for the launch of Xphozah in early November.
In the meantime, given its ongoing steady-growth trajectory and strong demand from new and repeat prescription writers, Ardelyx raised its full-year 2023 U.S. net-product revenue guidance for Ibsrela to between $76 million and $78 million -- up from previous guidance for between $72 million and $77 million.
In the end, this was a solid beat-and-raise performance from Ardelyx, with strong demand for its first FDA-approved product supplemented with excitement for the fresh launch of another. If the market reception for Xphozah is as positive as it's been for Ibsrela so far, today's gains could be just the beginning for this leading biopharma stock.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
