UPDATE: JMP Securities Initiates Coverage On Ardelyx Following Valuation Analyses

In a report published Monday, JMP Securities analyst Michael G. King initiated coverage on Ardelyx (NASDAQ: ARDX) with a Market Outperform rating and $26.00 price target.

In the report, JMP Securities noted, “Initiating coverage of Ardelyx, the industry leader in the development of non-absorbed drugs, with a Market Outperform rating and $26 price target based on the synthesis of our DCF and SOTP valuation analyses.

"The company completed its IPO transaction on June 19, 2014. Ardelyx is utilizing its first-in-class chemistry to discover and develop non-absorbed, small molecule compounds that block the absorption of a variety of ions (e.g., sodium, potassium, calcium) across the lumen of the gastrointestinal (GI) tract for the treatment of cardiorenal, GI, and metabolic diseases. The foundation of Ardelyx is built upon the discoveries of co-founder and Chief Scientific Officer, Dominique Charmot, PhD, a successful entrepreneur in the biotech space who founded Ilypsa, a company that developed a non-absorbed phosphate binder that was eventually sold to Amgen for $420MM in 2007.”

Ardelyx closed on Friday at $17.75.