TD Cowen reiterates Buy rating on Aurinia Pharmaceuticals stock at $11

Investing.com - TD Cowen has reiterated a Buy rating and $11.00 price target on Aurinia Pharmaceuticals (NASDAQ:AUPH), a $1.16 billion market cap biotech company with a perfect Piotroski Score of 9 according to InvestingPro, citing encouraging Phase I data for its aritinercept/AUR200 BAFF/April inhibitor program.

The firm reports that aritinercept demonstrated maximum reduction from baseline of 20% for IgG, 48% for IgA, and 55% IgM at the 225mg dose, with effects appearing saturated at higher doses. The PK/PD profile supports monthly subcutaneous dosing with a half-life of 6-8 days and good safety/tolerability, according to TD Cowen’s analysis.

Aurinia plans to initiate two proof-of-concept trials in the second half of the year, though the firm acknowledges the "very crowded, dynamic space" and awaits these trial results to better understand aritinercept’s market positioning.

For Lupkynis, TD Cowen expects usage to steadily grow with 2025 guidance of $240-250 million representing approximately 13% year-over-year growth. The company has demonstrated strong execution with 29.2% revenue growth and impressive 79.76% gross margins in the last twelve months. The firm models $245 million in sales, reflecting steady new patient adds, patient restarts, high conversion rates of about 85%, and stable long-term patient persistence.

TD Cowen’s $11 price target assumes gradual and steady growth for Lupkynis, with the firm noting that clinician feedback has been "universally positive" for the drug’s long-term potential in lupus nephritis, where consultants believe it could achieve 30-40% peak penetration despite current prescribing rates of only 5-10%. InvestingPro analysis indicates the stock is currently undervalued, with multiple positive indicators including strong financial health scores and growth metrics. Subscribers can access the comprehensive Pro Research Report for deeper insights into Aurinia’s valuation and growth potential.

In other recent news, Aurinia Pharmaceuticals reported promising results from its Phase 1 study of aritinercept, a dual inhibitor targeting B cell-activating factor and proliferation-inducing ligand. The trial demonstrated that aritinercept was well-tolerated across all dose levels with no serious adverse events, showing significant reductions in immunoglobulins. Aurinia plans to initiate further clinical studies of aritinercept in two autoimmune diseases in the second half of 2025. Additionally, the company reported first-quarter net product sales of $60.0 million for Lupkynis, surpassing analyst expectations. The company maintained its 2025 sales guidance of $240-250 million, reflecting a 13% year-over-year increase at the midpoint. Leerink Partners reiterated its Outperform rating on Aurinia, maintaining a price target of $10.00. Leerink highlighted the recent update to the American College of Rheumatology guidelines, which could benefit Aurinia’s Lupkynis sales. Aurinia concluded the first quarter with a net income of $23.3 million and strong financial reserves, having repurchased 5.8 million shares for $47.4 million.

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