Ardelyx, Inc. (ARDX), a biopharmaceutical company, saw a decreasing trend in its share price on Thursday. ARDX stock was trading at $1.71, a decrease of 1.16% when compared with the previous day. At the moment, ARDX stock is gaining its momentum back in the pre-market, with an increase of 5.26 % in share price. The share price is currently standing at $1.78.
US FDA response to Ardelyx, Inc.
On Thursday, Ardelyx, Inc. received a Complete Response Letter (CRL) from US Food and Drug Administration (FDA) regarding Tenapanor, a drug used to treat patients with chronic kidney disease (CKD). According to CRL, although FDA acknowledged that Tenapnor could aid in the treatment of CKD, on the other hand, it also pointed out that the magnitude of the drug’s effect was not substantial enough. Hence, Tenapnor was not granted approval to be used upon patients with CKD. Earlier, on July 19th, the company announced that FDA had pointed out the deficiencies within Tenapnor. That news caused a plunge of about 70% within ARDX stock. It fell from $7.70 to $2.01.
Accusations of securities fraud
As soon as the news of that plunge within share price came out, a number of law firms announced to investigate the matter. Block and Leviton LLP announced to investigate the securities fraud, which the company was accused of. Holzer and Holzer LLC also announced to investigate that whether the practices adopted by Ardelyx Inc. breached federal securities law or not. LabatonSucharow, a prominent stockholders rights firm, has also announced to investigate the matter. Besides, other law firms have also announced to investigate the accusations upon investors’ request.
Past developments of ARDX stock
Before that plunge, ARDX stock was thriving up until mid of April. In early April, the share price jumped up 6.8%. It was mainly because of the fact that investors were anticipating a potential approval of Tenapnor. In mid of April, the share price soared again, owing to the fact that the Japanese partner of the company, Kwoya Kirin, began the clinical studies to evaluate Tenapnor, imparting an influence on ARDX stock. In late April, the bullish trend started setting in, with the news that US FDA has pushed back the review period by three months. In May, the company reported the Q1 loss, a loss quarterly loss of $0.34 per share. That news had a negative effect on ARDX stock.
Future prospects for ADRX stock
Based on recent trends, it is hoped that during the next year, the company could gain back its lost momentum. It is because biotech stocks just need a minor event to gain the lost foothold in the market. So, potential investors should closely keep monitoring ARDX stock.