Back to top

Image: Bigstock

Aurinia (AUPH) Up on Paving the Way for a Potential Buyout

Read MoreHide Full Article

Aurinia Pharmaceuticals (AUPH - Free Report) rose almost 5.8% on Jun 30, as management announced that it is exploring strategic alternatives for the company’s future.

AUPH will consider a range of options, including a sale, merger, or other strategic transactions.

The company focuses on developing therapies for patients with autoimmune, kidney and rare diseases. Its only marketed product is Lupkynis, an oral therapy approved to treat adult patients with active lupus nephritis.

Lupkynis, approved by the FDA in 2021, was the first drug to receive the federal agency’s approval for lupus nephritis. It generated a net product revenue of $34.4 million in the first quarter of 2023.

In May 2023, the company revised its net product revenue guidance for fiscal 2023. It raised its projection to a range of $135-$155 million from the previously anticipated $120-$140 million. This increase reflects the expected growth in sales of Lupkynis.

Aurinia’s pre-clinical development candidates include AUR200 and AUR300. AUR200 is a recombinant Fc fusion protein. The company plans to submit an investigational new drug application to the FDA for the candidate in 2023.

If successful, AUR200 could become a valuable treatment option for certain autoimmune and kidney conditions.

Shares of Aurinia have rallied 124% year to date against the industry’s 2.7% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

While the company has not divulged a specific timeline for the completion of the strategic process yet, it aims to conduct a thorough evaluation of all available options. AUPH acknowledges that there is no guarantee for any specific outcome from this trial.

The decision to pursue various business growth alternatives comes from a commitment to ensure the best interests of the company, its shareholders and other key stakeholders.

In addition to the announcement regarding strategic alternatives, the company has accepted the resignations of two directors, George Milne and Joseph Hagan. They received less than majority support during Aurinia's annual general meeting on May 17, 2023, which prompted their departure.

Zacks Rank & Stocks to Consider

Aurinia currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the overall healthcare sector are Novartis (NVS - Free Report) , Akero Therapeutics (AKRO - Free Report) and Omega Therapeutics (OMGA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Novartis’ 2023 earnings has gone up from $6.56 per share to $6.74 in the past 90 days. Shares of Novartis have risen 11.2% year to date.

NVS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.15%.

The consensus estimate for Akero Therapeutics has narrowed from a loss of $2.96 per share to a loss of $2.80 for 2023 in the past 90 days. Shares of Akero Therapeutics have nosedived 14.8% year to date.

AKRO’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.13%. 

The consensus mark for Omega Therapeutics has narrowed from a loss of $2.49 per share to a loss of $2.05 for 2023 in the past 90 days. Shares of the company have rallied 0.2% year to date.

OMGA’s earnings beat estimates in two of the trailing four quarters, met the mark in one and missed in another, delivering an average surprise of 8.24%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in