FREMONT, Calif., March 6, 2019 /PRNewswire/ -- Ardelyx, Inc.
(Nasdaq: ARDX), a biopharmaceutical company focused on developing
first-in-class medicines to improve treatment choices for people
with cardiorenal diseases, today reported business highlights and
financial results for the fourth quarter and full year ended
December 31, 2018.
"Over the last year, we made significant progress towards
developing our lead product candidate, tenapanor, and executing on
our plan to provide patients with this first-ever, non-binder
treatment option for the treatment of hyperphosphatemia for
patients on dialysis," said Mike
Raab, president and chief executive officer of Ardelyx. "We
enter 2019 well-positioned with two years of cash on hand to
deliver on our strategic goals to report results from two Phase 3
clinical trials during the second half of the year and to prepare
for commercialization of our novel therapy."
Key Accomplishments in 2018
- Initiated the PHREEDOM clinical trial, the company's second
Phase 3 clinical trial of tenapanor for hyperphosphatemia in
patients with end-stage renal disease who are on dialysis. Topline
results from this trial are expected in the fourth quarter of
2019.
- Initiated the Phase 3 AMPLIFY clinical trial, designed to
evaluate expanded use of tenapanor as an adjunctive therapy to
phosphate binders. Results from the AMPLIFY clinical trial are
currently expected in the second half of 2019.
- Reported the unique mechanism of action for tenapanor to
inhibit paracellular phosphate absorption in Science and
Translational Medicine.
- Submitted and received acceptance of the filing of a New Drug
Application for U.S. marketing authorization of tenapanor for
patients with IBS-C. The target action date under the Prescription
Drug User Fee Act (PDUFA) is September 12,
2019.
- Raised approximately $100 million
through equity and debt financing to support further development
and commercial launch preparation for tenapanor for the treatment
of hyperphosphatemia.
- Received a $5 million milestone
payment in February 2019 from the
company's collaboration partner, Kyowa Hakko Kirin, for the
initiation of a Phase 2 clinical study of tenapanor for
hyperphosphatemia patients on dialysis in Japan.
Full Year 2018 Financial Results
- Cash Position: As of December 31,
2018, Ardelyx had total capital resources including cash,
cash equivalents and short-term investments of $168.1 million compared to total capital
resources including cash, cash equivalents and short-term
investments of $134.0 million as of
December 31, 2017.
- Revenue and Cost of Revenue: Total revenues were
$2.6 million in the year ended
December 31, 2018 related to the
company's ex-U.S. collaboration partnerships, and cost of revenues
was $0.5 million related to payments
due to AstraZeneca in accordance with the company's termination
agreement entered into with AstraZeneca in June 2015.
- R&D Expenses: Research and development expenses were
$69.4 million for the year ended
December 31, 2018, a decrease of
$6.1 million, or 8%, compared to
$75.5 million for the year ended
December 31, 2017. The decrease
consisted of a $1.1 million decrease
in external program costs primarily due to discontinuation of the
RDX7675 program and the reduction of activities associated with the
RDX8940 program that was partially offset by an increase in expense
related to the company's tenapanor programs. There was a
$5.0 million decrease in internal
program costs primarily due to a decrease in personnel costs,
including stock-based compensation costs as a result of a reduction
in force during the third quarter of 2017, and a related decrease
in research and development activities.
- G&A Expenses: General and administrative expenses
were $23.7 million for the year ended
December 31, 2018, an increase of
$0.5 million, or 2%, compared to
$23.2 million for the year ended
December 31, 2017. The increase was
primarily due to an increase in professional services and
stock-based compensation expense, partially offset by a reduction
in personnel costs due to reduction in force during the third
quarter of 2017.
- Net Loss: Net loss for the year ended December 31, 2018, was $91.3 million compared to a net loss of
$64.3 million for the year ended
December 31, 2017.
Financial Guidance
Ardelyx maintains its expectation that its cash, cash
equivalents and short-term investments will be sufficient to fund
the company's operations until at least early 2021 based on its
current operating plans.
About Ardelyx, Inc.
Ardelyx is focused on enhancing
the way people with cardiorenal diseases are treated by developing
first-in-class medicines. Ardelyx's cardiorenal pipeline includes
the Phase 3 development of tenapanor for the treatment of
hyperphosphatemia in people with end-stage renal disease (ESRD) who
are on dialysis, and RDX013, a potassium secretagogue program for
the potential treatment of high potassium, or hyperkalemia, a
problem among certain patients with kidney and/or heart disease. In
addition, Ardelyx has completed Phase 3 development of tenapanor
for the treatment of irritable bowel syndrome with constipation
(IBS-C) and submitted a new drug application, or NDA, to the U.S.
Food and Drug Administration, or FDA, for the treatment of patients
with IBS-C which has been granted a target action date under the
Prescription Drug User Fee Act (PDUFA) of September 12, 2019. To efficiently bring its
treatments to market, Ardelyx is pursuing strategic collaborations
for tenapanor for IBS-C and hyperphosphatemia in certain
territories. Ardelyx has established agreements with Kyowa Hakko
Kirin in Japan, Fosun Pharma in
China and Knight Therapeutics in
Canada. For more information,
please visit http://www.ardelyx.com/ and connect with us on Twitter
@Ardelyx.
Forward Looking Statements
To the extent that
statements contained in this press release are not descriptions of
historical facts regarding Ardelyx, they are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor of the Private
Securities Reform Act of 1995, including the potential for
Ardelyx's product candidates in treating the diseases and
conditions for which they are being developed, the potential for
the use of tenapanor as monotherapy and in combination with
phosphate binders as adjunctive therapy for the treatment of
hyperphosphatemia, Ardelyx's expected timing for receipt of data
from its ongoing Phase 3 clinical trials of tenapanor for the
treatment of hyperphosphatemia in ESRD patients, and Ardelyx's
expectations regarding the exhaustion of its current capital
resources. Such forward-looking statements involve substantial
risks and uncertainties that could cause the development of
Ardelyx's product candidates or Ardelyx's future results,
performance or achievements to differ significantly from those
expressed or implied by the forward-looking statements. Such risks
and uncertainties include, among others, the uncertainties inherent
in the clinical development process, the uncertainties associated
with the regulatory approval process, and the uncertainties in the
drug commercialization process. Ardelyx undertakes no
obligation to update or revise any forward-looking statements. For
a further description of the risks and uncertainties that could
cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to Ardelyx's
business in general, please refer to Ardelyx's Annual Report on
Form 10-K filed with the Securities and Exchange Commission on
March 6, 2019, and its future current
and periodic reports to be filed with the Securities and Exchange
Commission.
Ardelyx,
Inc.
|
Consolidated
Condensed Balance Sheets
|
(In
thousands)
|
|
|
|
December
31,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
(1)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
78,768
|
|
$
75,383
|
Short-term
investments
|
|
89,321
|
|
58,593
|
Accounts
receivable
|
|
85
|
|
10,796
|
Unbilled license
revenue
|
|
5,000
|
|
—
|
Property and
equipment, net
|
|
5,611
|
|
8,032
|
Prepaid and other
assets
|
|
4,547
|
|
5,099
|
Total
Assets
|
|
$
183,332
|
|
$
157,903
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Accounts payable and
other current liabilities
|
|
$
16,728
|
|
$
17,871
|
Uncharged license
fees
|
|
1,000
|
|
—
|
Loan payable, long
term
|
|
49,209
|
|
—
|
Other long-term
liabilities
|
|
582
|
|
720
|
Stockholders'
equity
|
|
115,813
|
|
139,312
|
Total liabilities and
stockholders' equity
|
|
$
183,332
|
|
$
157,903
|
|
|
|
|
|
(1) Derived from the
audited financial statements included on Form 10-K for the year
ended December 31, 2017.
|
Ardelyx,
Inc.
|
Consolidated
Statements of Operations
|
(In thousands, except
share and per share amounts)
|
|
|
Three Months
Ended
December 31,
|
Twelve Months
Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(1)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Licensing
revenue
|
$
—
|
|
$
42,000
|
|
$
2,320
|
|
$
42,000
|
|
Other
revenue
|
85
|
|
—
|
|
287
|
|
—
|
|
Total revenues
|
85
|
|
42,000
|
|
2,607
|
|
42,000
|
|
Cost of
revenue
|
—
|
|
8,400
|
|
466
|
|
8,400
|
|
Gross Profit
|
85
|
|
33,600
|
|
2,141
|
|
33,600
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
$
22,036
|
|
$
17,159
|
|
$
69,373
|
|
$
75,484
|
|
General and
administrative
|
5,425
|
|
5,479
|
|
23,715
|
|
23,231
|
|
Total operating
expenses
|
27,461
|
|
22,638
|
|
93,088
|
|
98,715
|
|
(Loss) income from
operations
|
(27,376)
|
|
10,962
|
|
(90,947)
|
|
(65,115)
|
|
Interest
expense
|
(1,438)
|
|
—
|
|
(3,534)
|
|
—
|
|
Other
income
|
950
|
|
331
|
|
3,187
|
|
1,955
|
|
Benefit from
(provision for) income taxes
|
2
|
|
(1,179)
|
|
(4)
|
|
(1,179)
|
|
Net (loss)
income
|
$
(27,862)
|
|
$
10,114
|
|
$
(91,298)
|
|
$
(64,339)
|
|
Net (loss) income
per common share, basic
|
$
(0.45)
|
|
$
0.21
|
|
$
(1.62)
|
|
$
(1.36)
|
|
Shares used in
computing net (loss) income per share, basic
|
62,108,906
|
|
47,528,183
|
|
56,219,919
|
|
47,435,331
|
|
Net (loss) income
per common share, diluted
|
$
(0.45)
|
|
$
0.21
|
|
$
(1.62)
|
|
$
(1.36)
|
|
Shares used in
computing net (loss) income per share, diluted
|
62,108,906
|
|
48,724,123
|
|
56,219,919
|
|
47,435,331
|
|
|
|
|
|
|
|
|
|
|
(1) Derived from the audited
financial statements included on Form 10-K for the year ended
December 31, 2017.
|
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SOURCE Ardelyx