Ardelyx(US:ARDX)2025-10-30 20:16Revenue and Sales Performance - Product sales for IBSRELA increased by 92% to $78.2 million in Q3 2025 compared to $40.6 million in Q3 2024, driven by higher demand and increased awareness [87]. - Total revenues for the nine months ended September 30, 2025, were $282.1 million, a 30% increase from $217.5 million in the same period of 2024 [87]. - XPHOZAH product sales decreased by 47% to $27.4 million in Q3 2025 due to lower demand and loss of Medicare Part D reimbursement [87]. - The gross product sales for Q3 2025 were $152.1 million, a 25% increase from $121.8 million in Q3 2024 [96]. - Non-cash royalty revenue increased by 492% to $4.8 million in Q3 2025, reflecting significant commercialization milestones [96]. Expenses and Financial Obligations - Cost of product sales increased by 55% to $2,662,000 in Q3 2025 compared to $1,715,000 in Q3 2024, and by 100% to $8,247,000 in the nine months ended September 30, 2025 compared to $4,133,000 in the same period of 2024 [98]. - Total operating expenses rose by 27% to $101,679,000 in Q3 2025 from $80,280,000 in Q3 2024, and increased by 35% to $299,493,000 in the nine months ended September 30, 2025 compared to $221,269,000 in the same period of 2024 [98]. - Research and development expenses increased by 18% to $18,067,000 in Q3 2025 from $15,310,000 in Q3 2024, and by 26% to $48,671,000 in the nine months ended September 30, 2025 compared to $38,651,000 in the same period of 2024 [102]. - Selling, general and administrative expenses grew by 29% to $83,612,000 in Q3 2025 from $64,970,000 in Q3 2024, and by 37% to $250,822,000 in the nine months ended September 30, 2025 compared to $182,618,000 in the same period of 2024 [104]. - The company had fully recognized a $75.0 million royalty obligation under the AstraZeneca Termination Agreement as of September 30, 2025 [81]. - The maximum royalty obligation of $75,000,000 under the AstraZeneca Termination Agreement was fully remitted as of September 30, 2025 [114]. Cash Flow and Financing Activities - Cash and cash equivalents decreased by 34% to $42,715,000 as of September 30, 2025 from $64,932,000 as of December 31, 2024 [108]. - Net cash used in operating activities increased by 16% to $63,434,000 in the nine months ended September 30, 2025 compared to $54,619,000 in the same period of 2024 [113]. - Net cash provided by financing activities decreased by 6% to $53,952,000 in the nine months ended September 30, 2025 compared to $57,276,000 in the same period of 2024 [113]. - The company has drawn $200,000,000 from a total of $300,000,000 available under the 2022 Loan Agreement as of September 30, 2025 [110]. - The principal outstanding under the 2022 Loan Agreement was $200.0 million, subject to a variable interest rate based on the one-month CME Term SOFR [119]. - A hypothetical increase of 100 basis points in the one-month CME Term SOFR would have increased the company's interest expense by approximately $1.3 million for the nine months ended September 30, 2025 [119]. - The company expects its available cash, cash equivalents, and short-term investments will be sufficient to fund operations for at least one year from the issuance of the financial statements [111]. - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $242.7 million, consisting of high-quality fixed income instruments [118]. Risk Management and Investments - The company is exposed to foreign currency risk due to transactions denominated in currencies other than the U.S. dollar, primarily Swiss francs, Japanese yen, and the Euro [120]. - As of September 30, 2025, the company had no open forward foreign currency exchange contracts, indicating no hedging against foreign currency exchange rate exposure [121]. - The company does not engage in speculative trading with derivative financial instruments [121]. - The company's investments are rated A-1/P-1 or better, and asset-backed securities must be rated AAA/Aaa, minimizing interest rate risk exposure [118]. - The company believes that a 10% movement in market interest rates would not significantly impact the total value of its investment portfolio [118]. - The company does not enter into investments for trading or speculative purposes, focusing instead on high-quality, short-term instruments [118]. - The fluctuation in the value of the U.S. dollar against other currencies affects reported amounts of expenses and assets related to manufacturing activities [120]. Future Plans - The company plans to submit an IND for RDX10531, a next-generation NHE3 inhibitor, in 2026 [84].