Ardelyx Inc. (ARDX) shares took a significant hit on Friday, plummeting 5.16% in the pre-market session. The stock's decline can be attributed to the company's disclosure of a new risk related to potential trade secret breaches, as reported in its latest filing.

According to the filing, Ardelyx faces significant business risk due to potential breaches of confidential information and trade secrets. This revelation has raised concerns among investors about the financial stability of the company and its ability to safeguard its intellectual property.

While Ardelyx's earnings call for the fourth quarter of 2024 highlighted strong performance and growth prospects, the looming threat of trade secret risks has overshadowed the positive news. Analysts have maintained their price targets, with HC Wainwright & Co. reiterating a $5.50 per share target, but the market's reaction reflects the heightened uncertainty surrounding the company's future.