ARDX · 10-Q

Filing note · 10-Q · filed 2026-08-06 · ARDELYX, INC.

Ardelyx [[ARDX]]: $50 Million Loan Draw Funds Growth as Product Sales Rise 31%

### Executive Summary
Ardelyx reported second-quarter net product sales of $118.1 million, up 31% year over year, and drew $50 million under its amended loan agreement, bringing term-loan principal to $250 million. The draw helped support $281.8 million in cash, cash equivalents and short-term investments at June 30, but rising gross-to-net deductions, continued operating cash use and XPHOZAH’s reimbursement headwind temper the commercial progress.

### What Happened
IBSRELA and XPHOZAH generated $86.2 million and $31.9 million in second-quarter net sales, respectively. First-half net product sales were $211.5 million; operating cash use was $38.6 million. Gross-to-net deductions increased to 34.0% of sales in the quarter, from 31.3% a year earlier, and the related reserve balance rose to $59.4 million from $45.4 million at year-end 2025. Ardelyx cited channel mix and Medicare and Medicaid inflation rebate charges as factors.

Under the April 28 Sixth Amendment to its SLR loan agreement, Ardelyx drew the $50 million Term F loan on June 29. At June 30, $250 million of the $300 million facility was outstanding; another $50 million Term G loan remained available at Ardelyx’s election through December 20, 2026. The amendment refinanced part of the prior Term A–C loans into a Term H loan and extended the applicable loans’ maturity and interest-only period to July 1, 2030. The stated rate is 4.55% plus the greater of one-month SOFR or 3.50%. Substantially all assets other than intellectual property and customary exclusions secure the debt.

The filing also reports that an appeals court affirmed dismissal of Ardelyx’s XPHOZAH CMS lawsuit on June 26; the company will not pursue further litigation. May amendments to supply agreements with Catalent and Patheon address product timelines, packaging and order processes, but pricing and other terms are redacted, so their financial effects are not disclosed in filing materials.

### Why It Matters
The commercial trajectory is positive, particularly for IBSRELA, but higher gross-to-net deductions mean net sales—not gross demand—remain the key measure of progress. Spending also increased: first-half R&D was $46.3 million and SG&A was $203.7 million. Although first-half operating cash use was below the prior-year $63.8 million, the filing attributes much of the improvement to payment and inventory timing. The cash balance therefore reflects both commercial activity and borrowing, rather than operating cash generation alone.

The loan extends financing flexibility but adds secured debt and variable-rate exposure. Its covenant requires trailing-six-month net product revenue plus certain unrestricted cash to equal at least 100% of outstanding principal; the agreement also includes default provisions, including subjective acceleration language tied to a material adverse change. XPHOZAH faces a separate commercial constraint: the company says Medicare’s ESRD bundled-payment treatment materially affected 2025 revenue and expects slower growth than previously anticipated; the appellate ruling closes the disclosed litigation route to challenge that treatment.

### Context & Prior Filing Comparison
The April 30, 2026 10-Q had already disclosed the April 28 Sixth Amendment as reducing rates across term loans and extending maturity for outstanding loans. This filing adds the completed $50 million Term F draw, loan balances and specific pricing and maturity terms. Compared with December 31, 2025, cash and short-term investments increased from $264.7 million to $281.8 million, while loan principal increased from $200 million to $250 million.

### What to Watch Next
- Whether Ardelyx draws the remaining $50 million Term G loan by December 20, 2026, and how liquidity and debt change.
- Whether product-sales growth holds as gross-to-net deductions, customer concentration and operating costs remain significant.
- Compliance with the loan’s revenue-and-cash covenant and management of variable-rate secured debt.
- ACCEL Phase 3 enrollment, expected to finish by year-end 2026, and topline data expected in the second half of 2027.
- Any further disclosure of the redacted Catalent and Patheon supply terms or their cost and delivery effects.

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