Ardelyx (ARDX) Jefferies Global Healthcare Conference summary

Business performance and product updates

• IBSRELA showed strong performance, with first quarter results supporting a $140M-$150M 2024 revenue guidance and a long-term billion-dollar peak opportunity at 10% market share.

• XPHOZAH launch is progressing well, with $15M in Q1 revenue, strong physician and patient response, and a unique mechanism that complements existing phosphate binders.

• Expansion of the IBSRELA sales force from 64 to 124 reps is underway, aiming to increase both breadth and depth of prescriber engagement.

• Commercial team changes were addressed, with leadership expressing confidence in ongoing commercial execution and minimal disruption.

Financial trends and guidance

• IBSRELA gross-to-net deduction was 33.5% in Q1, expected to improve to around 30% in Q2 and further decrease by year-end, mirroring 2023 trends.

• XPHOZAH gross-to-net discount was about 22% in Q1, lower than anticipated due to a favorable patient mix, and may tick up slightly as the year progresses.

• No formal revenue guidance for XPHOZAH yet, as the company monitors adoption and patient mix.

Market and regulatory environment

• XPHOZAH addresses a significant unmet need for dialysis patients with hyperphosphatemia, offering a new mechanism and easier administration compared to binders.

• The Kidney PATIENT Act (H.R. 5074) aims to delay inclusion of oral-only drugs like XPHOZAH in the Medicare bundled payment system, with strong bipartisan support and ongoing legislative progress.

• The company is preparing for potential regulatory changes, including applying for TDAPA and monitoring CMS draft PPS updates.