Biotech Values

[Whalatane]

$ARDX - ***UPDATE***
A large Wall Street bank hosted an investor call with DC legal experts re: ARDELYX, INC. et al v. BECERRA et al

Conclusion - Ardelyx is highly likely to be granted a Preliminary Injunction by Judge Beryl Howell as early as late October '24. This temporary court order prevents the Centers for Medicare & Medicaid Services (CMS) from acting on the challenged policy until the court makes a final decision. A trial would not likely take place until late 2025 and could last months based on the court's calendar and reliance on interpreting the Chevron Doctrine ruling which was recently overturned at the US Supreme Court on June 28, 2024. This case is also highly likely to face appeal and that could push the final ruling well into 2027.

My opinion- This favorable ruling enables both sell-side and buy-side analysts to project Ardelyx's revenues and cash flow through 2026 and likely into the first half of 2027, providing investors with greater confidence in the stock's valuation. Therefore, the stock should grind higher into earnings and beyond

From Frank on X

Kiwi