5 Best Biotech Penny Stocks To Buy Now

2. Ardelyx, Inc. (NASDAQ:ARDX)

Number of Hedge Fund Holders: 8

Share Price (as of June 17): $0.57

Ardelyx, Inc. (NASDAQ:ARDX) is one of the best biotech penny stocks to buy now. The Massachusetts-based firm already has an FDA approved drug available for sale in the United States and Canada, called Ibsrela (tenapanor) which is used for the treatment of adults with irritable bowel syndrome with constipation. It also has a drug candidate for the treatment of patients with chronic kidney disease (CKD) undergoing dialysis, called Xphoza. This product has completed three phase 3 studies that prove its efficacy in helping patients, and stands a decent chance of getting FDA approval as well after a spate of setbacks and reviews currently in progress.

Jefferies analyst Chris Howerton in March called Ardelyx, Inc. (NASDAQ:ARDX) a “stand out” name in the biotech sector, and upgraded it to ‘Buy’ from ‘Hold’ with a price target of $5, up from $1. He noted that the firm’s Ibsrela drug has a commercial opportunity which is validated by competitors Linzess and Trulance, which made $1 billion and $100 million in 2021 sales respectively. He estimates peak sales for Ibsrela to be near the $300 million mark.

On April 25, Piper Sandler analyst Christopher Raymond maintained a ‘Neutral’ rating on Ardelyx, Inc. (NASDAQ:ARDX) shares with a $4 price target. He notes that the convening of an advisory committee to review the Xphoza drug in response to the company’s appeal of FDA’s CRL (complete response letter) is “a clear positive” for Ardelyx, Inc. (NASDAQ:ARDX), and the chances of a reversal of the CRL now stand much higher.