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  5. AUPH: Hi 5i Aurinia pharma seems to have turned the corner with earnings and is also getting the drug into hospitals They are again reducing staff this time by 45%. [Aurinia Pharmaceuticals Inc]
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Investment Q&A

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Q: Hi 5i Aurinia pharma seems to have turned the corner with earnings and is also getting the drug into hospitals They are again reducing staff this time by 45%. They also have a new drug in trails. Please put on your speculative hat for the questions.

-would drug (Lupkynis) be of interest at this stage in development for another company to buy them and what would the buyout price be for the right company.
-going forward they will make about $220,000,000 a year this took about 3 1/2 years with a covid launch, what do you see max sale's being with the current set up and how many years to get there.
-Do you think Aurinia is a good speculative buy.

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Asked by Mark on November 13, 2024
5i Research Answer:

Lupkynis is the first-ever FDA-approved oral therapy for lupus nephritis. Lupkynis was approved for lupus nephritis (LN) in 2021. LN is an inflammation of the kidney caused by chronic autoimmune disease, systemic lupus erythematosus {SLE}. With a single drug, good results and significant cost cutting efforts, and a restructured board, one might even speculate that the company is actually prepping for a possible sale. Sector takeovers tend to be mulitples of sales, and can range widely. We might see 7 or 8 times' sales in a takeout, which would 'imply' about a 50% gain or more ($12 approx.). But we would note the company completed a strategic review in February, with no sale at that time. We have seen a revenue forecast of $3B by 2030. We would consider the stock risky, but there is potential here and we think the company is taking the right steps. We would consider it a decent speculative buy but only for investors that fully understand the sector and its associated risks.