Ardelyx shares fell about 6% on Friday after the company lost an appeal against the Health and Human Services Department regarding a Medicare decision that eliminated Part D coverage for its kidney disease therapy, Xphozah. The U.S. Court of Appeals for the District of Columbia Circuit reaffirmed a lower court ruling that had dismissed Ardelyx's lawsuit challenging Medicare's proposal to include oral-only phosphate-lowering therapies such as Xphozah in the End-Stage Renal Disease Prospective Payment System, a bundled payment system for dialysis services. Jefferies analyst Dennis Ding noted the setback removes an opportunity for Xphozah to be reimbursed as a standalone option for Medicare patients with chronic kidney disease, though he reiterated a Buy rating and $15 target on Ardelyx.
Ardelyx IncLost appeal against Medicare decision eliminating Part D coverage for Xphozah, removing reimbursement opportunity.