Raymond James has reiterated a Strong Buy rating on Ardelyx, Inc and maintained a $19.00 price target after the U.S. Patent and Trademark Office issued a formulation patent for the company's lead compound, tenapanor (Patent No. 12,539,299). Ardelyx shares are trading at $7.74 with an implied market capitalization of $1.88 billion, and InvestingPro Fair Value measures suggest the stock remains modestly undervalued.
The newly granted patent pertains to a specific formulation of tenapanor and could - according to the filing - push the drug's market exclusivity beyond the current 2033/34 horizon toward 2042. Tenapanor is sold under two brand names - Ibsrela and Xphozah - which serve different therapeutic indications. That branded portfolio has been a key driver behind Ardelyx's recent top-line performance, supporting a 58% increase in revenue over the last twelve months.
Raymond James acknowledged that some investors doubt the patent will extend exclusivity all the way to 2042. To assess the practical effect of the patent, the firm consulted a pharmaceutical intellectual property expert, who concluded the new patent would at minimum improve Ardelyx's negotiating leverage with potential generic challengers.
In its valuation work, Raymond James estimated that even a more conservative outcome - an incremental three years of exclusivity beyond the current timeline - could boost Ardelyx's discounted cash flow-derived share value by roughly $4. InvestingPro summaries of analyst targets for the company span from $10 up to $19, while the stock has posted strong gains over recent three- and six-month periods.
On the commercial front, Ardelyx reported solid financial results for 2025. Total product revenue was approximately $378 million, representing an 18% increase year-over-year. The company's principal product, IBSRELA, accounted for $274 million of that total, a 73% rise versus the prior year. IBSRELA generated $87 million in the fourth quarter, which the company said aligned with its guidance.
Separately, Ardelyx has started a Phase 3 clinical study for IBSRELA in adults with chronic idiopathic constipation, with a planned enrollment of about 700 patients. The company is also the subject of media reports that Zydus Life, an Indian pharmaceutical group, is weighing either acquiring a controlling stake in Ardelyx or buying selected molecules from its portfolio; those reports have not been confirmed by Ardelyx or Zydus.
Market analysts have responded to these developments with upward adjustments to their targets. BTIG raised its price objective from $14 to $17. Raymond James increased its target from $16 to $19 while preserving its Strong Buy recommendation. Collectively, these moves reflect market optimism about Ardelyx's commercial momentum, potential patent protections, and strategic options.
Contextual note: The company’s reported figures, the patent number, and analyst actions reported here are taken from the information provided and reflect the assessments and data contained in that material.