Final Trade Detail


Investors who followed this trade Generated a

8.2% Return

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Original Recommendation


Ardelyx (ARDX)

our opinion


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  • Ardelyx's primary drug is in Phase III trial and expected to receive approval in early 2019.
  • New Enterprise Associates (NEA) owns over 25% of outstanding shares. This activist investor will likely continue to accumulate shares at these low prices.
  • The company has 3 additional drugs in Phase I and Phase II trials. This is not a one-trick pony!

trade details

Ardelyx is a biotech company developing treatments for a common medical condition known as (IBS-C), or irritable bowel syndrome with constipation. They have a robust portfolio of therapeutics in development to treat underserved patients with gastrointestinal (GI) diseases. Ardelyx is a prime candidate for explosive growth and, in our eyes, is a screaming buy! So why did the stock recently hit a 52-week low on June 29, 2018? Let me explain.

Ardelyx sold an additional 12.5 million shares of stock in a secondary offering. This means dilution for existing shareholders, so the stock subsequently dropped to where the secondary offering was priced – $4/share. We may not have been buyers at $8, but when you’re offered a 50% discount on a company with this much growth potential – YOU TAKE IT!

Ardelyx has multiple drugs in a Phase I, II and III trials. The drug with the most promise is Tenapanor, and is scheduled to receive approval in late 2018, early 2019. If approved, you can expect Tenapanor to begin generating sales in 2019. If all goes to plan, you can expect shares will more than double from the current price of $3.90 (as of July 28, 2018).

We recommend taking a small position in this promising company. Buy up to $4.25/share.