While investors chase the usual market darlings, a few underappreciated businesses are quietly gaining traction by generating actual revenue growth, expanding margins, and setting themselves up for long-term success through promising pipelines. As the market seeks profitable innovation in healthcare and biotech, Ardelyx (ARDX) and TScan Therapeutics (TCRX) could be among 2025’s most underrated and possibly rewarding stocks.
Ardelyx may not yet be a household name on Wall Street, but this small-cap biotech business is quietly building momentum through disciplined execution and rapidly expanding commercial performance. Valued at $1.17 billion, Ardelyx focuses on identifying, developing, and commercializing drugs that predominantly work in the gastrointestinal (GI) tract, with little absorption into the rest of the body. Two of its commercial medications, IBSRELA and XPHOZAH, have begun to generate substantial revenue.
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Nonetheless, the stock has dipped 1% year-to-date (YTD), underperforming the broader market gain.
Ardelyx reported $97.7 million in total revenue in the second quarter, up 33% year-on-year (YoY) and 32% sequentially. That increase came from its two primary medications, IBSRELA and XPHOZAH, both based on its proprietary molecule, tenapanor. Notably,IBSRELA, which treats irritable bowel syndrome with constipation (IBS-C) in adults, generated $65million in net sales, reflecting an 84% YoY increase. The drug had its best quarter ever, thanks to record-high new and refill prescriptions, increased prescriber adoption, and consistent execution on commercial priorities.
With this rapid growth, Ardelyx increased its 2025 IBSRELA sales projection to $250 million to $260 million, demonstrating management’s growing confidence in the product’s long-term prospects.
XPHOZAH, its second important asset, is used to reduce serum phosphate (phosphorus) levels in individuals with chronic kidney disease (CKD) on dialysis who have hyperphosphatemia, a condition characterized by an excess of phosphate in the blood. XPHOZAH is gaining appeal among nephrologists, boasting net sales of $25 million in the second quarter.
