Aurinia Pharmaceuticals (AUPH – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ed Arce from H.C. Wainwright maintained a Buy rating on the stock and has a $13.00 price target.
Ed Arce has given his Buy rating due to a combination of factors related to Aurinia Pharmaceuticals’ strategic financial moves and the underlying potential of its key product LUPKYNIS. The company’s announcement of a share repurchase program, which has been sanctioned for up to 15% of its issued and outstanding shares, signals strong confidence from the Board in the company’s growth prospects. This initiative is considered accretive to shareholders, with a projected positive impact on the earnings per share for the year 2024. Arce also notes that despite some challenges, key LUPKYNIS U.S. launch metrics are showing promising gains in the number of new patients.
Furthermore, Arce’s optimism is bolstered by a robust valuation model that incorporates a risk-adjusted net present value (rNPV) analysis, with positive expectations for LUPKYNIS’ approval and market penetration in the U.S. and Europe, and a potential launch in Japan. The projected peak U.S. sales of $1.2 billion by 2037, along with significant royalties from Europe, reflect the anticipated success of the drug. Despite acknowledging potential risks such as lower than expected revenue growth, safety concerns, and patent disputes, Arce maintains a positive outlook on Aurinia Pharmaceuticals, underpinning the Buy rating and a price target of $13.
In another report released on February 23, Cantor Fitzgerald also maintained a Buy rating on the stock with a $10.00 price target.
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Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AUPH in relation to earlier this year.
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Aurinia Pharmaceuticals (AUPH) Company Description:
Aurinia Pharmaceuticals, Inc. operates as a clinical stage biopharmaceutical company, which engages in the development of a therapeutic drug to treat autoimmune diseases particularly lupus nephritis. The company was founded by Robert Foster, Richard Glickman and Michael Martin on June 16, 1993 and is headquartered in Victoria, Canada.
Read More on AUPH:
- Aurinia Pharmaceuticals Announces Executive R&D Leadership Change
- Aurinia Pharmaceuticals Launches Share Buyback Plan
- Aurinia Pharmaceuticals Engages Investors at March Conferences
- H.C. Wainwright cuts Aurinia target, says 28% selloff overdone
- Aurinia Pharmaceuticals call volume above normal and directionally bullish
