Ardelyx Inc (NASDAQ: ARDX) was one of the big losers in Wednesday’s trading session. After rallying for the better part of the week, the stock dropped to close the day at a loss of 15.28%. This followed news that the company was pricing its public offering of 20 million of common stock at $6.52 per share. The company announced that gross profits from this move are $125 million. The company also announced that, it had given underwriters one month to buy an extra 3 million shares at the offer price, net of underwriting discounts and commissions. The public offering will come to a close on the 9th of December.
The company also announced that, it intends to use the proceeds from the public sale to support the development and sale of Tenapanor. This is the company’s treatment (still in development) for hyperphosphatemia in people suffering from chronic kidney disease.
Prior to Wednesday’s correction, the stock had rallied on news that its experimental drug for reducing increased blood phosphate levels in people suffering from chronic kidney disease was on track. Nonetheless, 52.5% of the patients who used the treatment had diarrhea and this led to discontinuation in 16% of the patients during the early phase of the study. However, even with this discontinuation rate, the results were positive, and it hit its main goal of lowering phosphate levels. The company also announced that it intends to seek approval for Tenapanor in mid-next year, and expects to get approval from U.S authorities in mid-2021.
From the charts, yesterday the stock was trading between a high of $8.13 and a low of $6.53, before closing at $6.82. Volumes in the day stood at 2.3 million.
About Ardelyx Inc
Ardelyx Inc is a biopharmaceutical company that develops and sells treatments for cardiorenal diseases. It has its headquarters in Fremont, California.