H.C. Wainwright assumes coverage on Aurinia Pharmaceuticals stock with Buy rating

Investing.com - H.C. Wainwright has assumed coverage on Aurinia Pharmaceuticals (NASDAQ:AUPH) with a Buy rating and a price target of $17.00, according to a research note released Wednesday. Currently trading at $8.95, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $8.00 to $12.00.

The research firm cited three key factors supporting its bullish outlook: a solid foundation from the lupus nephritis franchise, potential positive impact from the 2024 American College of Rheumatology guideline on lupus nephritis, and the promising therapeutic potential of aritinercept in autoimmune diseases.

Aurinia’s lead product, Lupkynis (voclosporin), is the first FDA-approved oral drug for treating adult patients with active lupus nephritis and has been commercially available since January 2021.

The company expects Lupkynis to generate net sales of $240-$250 million in 2025, representing sequential growth of 11-16% compared to 2024 net sales of $216.2 million.

Aurinia is also developing aritinercept (AUR200), a dual inhibitor of B cell-activating factor and a proliferation-inducing ligand for the treatment of autoimmune diseases.

In other recent news, Aurinia Pharmaceuticals reported positive results from its Phase 1 study of aritinercept, a dual inhibitor of B cell-activating factor and a proliferation-inducing ligand. The study, which involved 61 healthy subjects, showed that aritinercept was well tolerated across all dose levels without any serious adverse events or treatment-related discontinuations. Additionally, Aurinia’s drug Lupkynis achieved first-quarter net product sales of $60 million, slightly surpassing both Leerink Partners’ and consensus estimates. The company maintained its yearly guidance for 2025, projecting total net product sales between $240-250 million, indicating a 13% increase year-over-year at the midpoint.

Analyst firms have responded positively to these developments. TD Cowen reiterated a Buy rating on Aurinia, citing encouraging Phase I data for the aritinercept program, while maintaining a price target of $11. Leerink Partners also maintained an Outperform rating with a $10 price target, noting that Lupkynis sales showed a 4% quarterly growth, which they find promising. The firm expects Aurinia’s full-year guidance to be attainable despite potential seasonal declines in the third quarter. These recent developments highlight the ongoing interest and confidence in Aurinia’s pharmaceutical advancements.

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