Ardelyx(US:ARDX)2025-05-01 20:04Revenue Performance - Total revenues for Q1 2025 reached $74.1 million, a 61% increase from $46.0 million in Q1 2024[79] - Product sales, net for IBSRELA were $44.4 million, up 57% from $28.4 million in Q1 2024, while XPHOZAH sales were $23.4 million, a 55% increase from $15.2 million[79] - The gross product sales for Q1 2025 were $96.7 million, a 55% increase from $62.5 million in Q1 2024, with GTN adjustments totaling $28.9 million[85] - Licensing revenue increased significantly to $5.0 million in Q1 2025, compared to $17,000 in Q1 2024, primarily due to a $5.0 million milestone from the Fosun Agreement[83] - The company received a $5.0 million milestone payment in Q1 2025 following the NDA approval for tenapanor in China, recorded as licensing revenue[77] Operating Expenses - Total operating expenses rose to $98.2 million in Q1 2025, a 54% increase from $63.6 million in Q1 2024, driven by higher selling, general, and administrative costs[87] - Research and development expenses increased by 41% to $14.9 million in Q1 2025, up from $10.6 million in Q1 2024, largely due to increased employee-related expenses[90] - Cost of goods sold for Q1 2025 was $12.3 million, a 73% increase from $7.1 million in Q1 2024, reflecting higher product sales[87] - The increase in selling, general, and administrative expenses was attributed to commercialization efforts for IBSRELA and XPHOZAH, including a $2.8 million rise in stock-based compensation[91] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $30.8 million, down 53% from $64.9 million on December 31, 2024[95] - Total liquid funds decreased by 14% to $214.0 million from $250.1 million[95] - Net cash used in operating activities increased by 8% to $38.5 million in Q1 2025 compared to $35.7 million in Q1 2024[100] - Net cash provided by financing activities decreased by 97% to $1.5 million in Q1 2025 from $53.0 million in Q1 2024[100] - The company has drawn $150.0 million from a total of $200.0 million available under the 2022 Loan Agreement as of March 31, 2025[97] - The company reported a net decrease in cash and cash equivalents of $34.1 million in Q1 2025, compared to an increase of $14.7 million in Q1 2024[100] - The company expects its available cash and short-term investments will be sufficient to fund operations for at least one year from the issuance of the financial statements[98] Interest Expense - Interest expense increased to $4.2 million in Q1 2025, up 78% from $2.4 million in Q1 2024, due to a higher loan balance from the Term D Loan[92] - A hypothetical increase in one-month CME Term SOFR of 100 basis points would increase interest expense by approximately $0.4 million for Q1 2025[106] Share Issuance - The company completed sales resulting in the issuance of 16.8 million shares and gross proceeds of $70.0 million at an average price of approximately $4.17[96] Investment Strategy - The company maintains its excess cash in high-quality, short-term investments, minimizing exposure to interest rate risk[105]