These 3 Biopharma Names Get Earnings Boost
Investing in these small- and mid-cap names is starting to pay off.
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A flurry of third-quarter results has hit around numerous small- and mid-cap biotech and biopharma stocks within my portfolio over the past week. Many of these names I have highlighted here in 2025. In today’s column, I will focus on three stocks that delivered standout Q3 numbers and whose investment cases have grown more positive as a result.
We will start with Amicus Therapeutics (FOLD) , a small biotech name I have built up a decent position in via covered call holdings this spring as the stock inexplicably slid down into bargain basement territory. That patience has started to pay off, and the shares have staged a nice little rebound since the start of August. The rally could further have legs based on the third-quarter results the company posted on Tuesday. Amicus delivered earnings per share of 18 cents, 50% above the consensus. Revenues rose over 19% on a year-on-year basis to $169 million, slightly north of expectations.
Management confirmed it sees combined sales of $1 billion from its two products on the market by fiscal 2028. Amicus should be solidly profitable starting in fiscal 2026 and going forward. Both Needham ($14 price target) and TD Cowen ($20 price target) reissued Buy ratings following quarterly results.
Ardelyx, Inc. (ARDX) posted better-than-expected third-quarter numbers last Friday. This small cap biopharma has one main asset in tenapanor. It is approved to treat irritable bowel syndrome with constipation or IBS-C under the brand name Ibsrela. Tenapanor is also approved by the Food and Drug Administration to control serum phosphorus levels in adult patients with chronic kidney disease (CKD) on dialysis under the brand name Xphozah. Since late last year Xphozah has been cut out of standalone reimbursement by the Centers for Medicare and Medicaid Services for part D of Medicare. This was a big hit for revenue growth, and the company is still fighting this decision.
That said, Ibsrela is doing a commendable job carrying the franchise. Ibsrela revenues rose just over 90% from the same period a year ago to just over $78 million. Xphozah sales were down from the third quarter of 2024 due to the reimbursement issue, but up 9% sequentially from the previous quarter. Overall sales grew just over 12% year-over-year to just over $110 million. This was some $10 million above the analyst consensus.
The growth allowed Ardelyx to cut its net loss dramatically from the same period in 2024 as the company neared breakeven status. This was significantly above expectations. Management also bumped up its fiscal 2025 sales guidance solidly for the second-straight quarter. Like Amicus, Ardelyx should become permanently profitable in fiscal 2026, and the company's impressive analyst estimates for both profit and revenue growth in the years ahead.
Finally, just a quick update on Rigel Pharmaceuticals (RIGL) , which I provided a deeper dive and recommendation around late in October. The company posted Q3 results after the bell yesterday. The company crushed both profit and revenue expectations and leadership boosted guidance. The shares should head significantly higher in trading today.
At the time of publication, Jensen was long ARDX, FOLD, RIGL
