ARDX Should I Buy

Jefferies notes that an appellate court this morning reaffirmed a district court's decision and dismissed Ardelyx's appeal on Xphozah getting included in the Medicare ESRD bundle and no longer being reimbursed individually under Part D. The analyst notes that the firm has been flagging the appeals case as a free call option and didn't think investors were too interested in playing this catalyst, so it contends that "the loss shouldn't fundamentally change anything." However, the firm is also flagging that Q2 Ibsrela sales "likely will miss consensus" and wonders if shares could underperform in the near term now that the CMS appeal catalyst is out of the way. Jefferies has a Buy rating and $15 price target on Ardelyx shares.