Ardelyx(US:ARDX)2025-08-04 20:41Revenue Performance - Total revenues for the three months ended June 30, 2025, were $97.662 million, a 33% increase from $73.222 million in the same period of 2024[84]. - Product sales, net for IBSRELA reached $65.045 million in Q2 2025, an 84% increase compared to $35.445 million in Q2 2024[84]. - XPHOZAH product sales, net decreased by 33% to $25.032 million in Q2 2025 from $37.146 million in Q2 2024, primarily due to lower demand and loss of Medicare Part D reimbursement[84][86]. - Gross product sales for the six months ended June 30, 2025, were $227.919 million, a 42% increase from $160.227 million in the same period of 2024[92]. Licensing and Royalty Revenue - Licensing revenue included a $5.0 million milestone from the Fosun Agreement upon NDA approval for tenapanor in China[90]. - The company recognized a total of $75.0 million royalty obligation under the AstraZeneca Termination Agreement as of June 30, 2025[80]. - Non-cash royalty revenue increased by 130% in Q2 2025, driven by royalties from Kyowa Kirin for sales of PHOZEVEL in Japan[91]. Expenses and Costs - Cost of product sales increased by 131% to $3,245,000 for the three months ended June 30, 2025, compared to $1,405,000 in 2024[95]. - Total cost of goods sold rose by 31% to $12,403,000 for the three months ended June 30, 2025, from $9,436,000 in 2024[95]. - Research and development expenses increased by 23% to $15,666,000 for the three months ended June 30, 2025, compared to $12,762,000 in 2024[99]. - Selling, general and administrative expenses grew by 30% to $83,988,000 for the three months ended June 30, 2025, from $64,654,000 in 2024[100]. - Interest expense increased by 31% to $(4,356,000) for the three months ended June 30, 2025, compared to $(3,326,000) in 2024[101]. Cash and Liquidity - Cash and cash equivalents rose by 39% to $90,045,000 as of June 30, 2025, from $64,932,000 at December 31, 2024[104]. - Total liquid funds decreased by 5% to $238,452,000 as of June 30, 2025, from $250,100,000 at December 31, 2024[104]. - Net cash used in operating activities increased by 16% to $(63,799,000) for the six months ended June 30, 2025, compared to $(55,120,000) in 2024[109]. - Net cash provided by investing activities increased by 80% to $37,774,000 for the six months ended June 30, 2025, from $20,961,000 in 2024[109]. - The company expects to increasingly rely on cash generated from operations to fund its operating plan while maintaining financial flexibility[104]. - As of June 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $238.5 million, including bank deposits and money market funds[114]. - The company maintains high-quality short-term investments, with credit ratings of A-1/P-1 or better for short-term investments and AAA/Aaa for asset-backed securities[114]. Debt and Interest Rate Exposure - The company entered into a Fifth Amendment to its 2022 Loan Agreement, allowing for an immediate draw of $50.0 million and an option for an additional $100.0 million in senior secured term loans[81]. - The company has an aggregate principal amount of $200.0 million outstanding under the 2022 Loan Agreement as of June 30, 2025[115]. - A hypothetical increase of 100 basis points in one-month CME Term SOFR would have raised the company's interest expense by approximately $0.4 million for the six months ended June 30, 2025[115]. Foreign Exchange Risk - The majority of the company's transactions are denominated in U.S. dollars, but it is exposed to foreign exchange risk due to transactions in Swiss francs, Japanese yen, and the Euro[116][117]. - The company does not use derivative financial instruments for speculative trading or to fully hedge foreign currency exchange rate exposure[118]. - As of June 30, 2025, the company had no open forward foreign currency exchange contracts[118]. Strategic Focus - The company aims to accelerate IBSRELA growth, execute XPHOZAH strategy, and build a pipeline focused on unmet patient needs[78]. - The GTN adjustment percentage increased to 31.3% for Q2 2025 from 25.7% in Q2 2024, reflecting unfavorable payor mix shifts[92].