Ardelyx Stock Jumps 40% After Launching IBSRELA® Second Quarter of 2022
Dec 1, 2021 By MarketDepth
Ardelyx, Inc. (NASDAQ: ARDX) stock jumped more than 40% after the biotechnology company announced plans to launch IBSRELA, the company’s approved treatment for irritable bowel syndrome with constipation (IBS-C) in adults, in the second quarter of 2022.
“Over the last five years, the IBS-C market has grown to be sizeable and concentrated, with 9,000 high-writing physicians accounting for approximately 50% of the almost five million prescriptions written annually for drugs indicated for the treatment of IBS-C. This market is ripe for the entry of a novel therapeutic option like IBSRELA, as existing therapies do not adequately address all patient treatment needs. Our market research has clearly shown that treating physicians recognize the need for new therapeutic alternatives to address the unmet medical needs of patients currently managed for IBS-C. That same research demonstrates high interest in, and intent to prescribe, IBSRELA for a subset of patients. By capturing even a modest share, in the mid to high single-digit of this large market, IBSRELA has the potential to generate at least $500 million in peak annual net revenue. We will use the next few months to build commercial inventory and prepare the market for a second-quarter 2022 launch. We believe we have a clear line of sight to breakeven and ultimate profitability for the product, which we expect will create significant shareholder value.”Mike Raab, president and chief executive officer of Ardelyx
William Chey, M.D., Nostrant Professor of Medicine at the University of Michigan School of Medicine, added, “It is now widely recognized that while people with IBS-C present with similar symptoms, it is a disorder of heterogeneous pathogenesis. Therefore, while there has been much improvement in our treatment of patients with IBS-C over the last two decades with the introduction and broad adoption of GC-C agonists, it should be no surprise that many patients continue to suffer. There is a need for innovation. The launch of IBSRELA, as a first-in-class NHE3 inhibitor, is exciting, as it offers a unique mechanism of action with compelling clinical data, providing physicians with an important new tool to advance the care of patients with IBS-C.”
“IBSRELA, with its first-in-class mechanism and strong clinical data package, is an important new addition to the IBS-C treatment armamentarium. The approval of IBSRELA was based on two successful Phase 3 trials involving over 1,200 patients with IBS-C. Both trials met their primary and most secondary endpoints. Additionally, in both trials, improvements from baseline in average weekly bowel movements and abdominal pain were observed by Week 1, with improvement sustained through the end of treatment. IBSRELA can play a meaningful role in the treatment of patients suffering from IBS-C.”Laura A. Williams, M.D., M.P.H., chief medical officer of Ardelyx