Revisiting Ardelyx – Insider Weekends

Ardelyx Inc (ARDX): $6.55

Market Cap: $1.61B

Enterprise Value: $1.58B

Introduction

About a year ago, we wrote our February 2025 newsletter on two biotech companies: Avadel and Ardelyx (ARDX). A year later, it’s fascinating to see how both situations played out. The initial catalyst for both investments was seeing elevated insider activity, especially at Avadel, which had seen months of stock price decline, despite receiving approval from the FDA for its drug to treat narcolepsy. Avadel’s competitor, Jazz Pharmaceuticals, was already generating nearly $2 billion in sales from their own narcolepsy drugs and after a tumultuous lawsuit against the FDA, a judge ended up ruling that Avadel’s drug was clinically superior. Despite this, the company’s stock price kept falling amidst inventory issues and other minor problems, which is when we saw six different insiders step in to purchase shares.

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