Aurinia Pharmaceuticals Loses Value Despite Good Financials

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Aurinia Pharmaceuticals Intrinsic Value – Aurinia Pharmaceuticals ($NASDAQ:AUPH), a Canadian biotech, lost 22% of its value pre-market Thursday, despite announcing better-than-expected financials for Q3 2022. The company lowered its full-year guidance, citing weak demand for its lupus nephritis therapy Lupkynis. “Unfortunately, we experienced a slight decline in new patient start forms over the second quarter ended June 30, 2022, which is potentially the result of reduced lupus nephritis diagnoses and patient visits in the quarter,” Chief Executive Peter Greenleaf said. Given the market conditions, Aurinia has trimmed its 2022 net revenue guidance related to Lupkynis sales to $100M -105M from $115M. $135M, estimated three months ago.

Aurinia’s stock has been on a roller coaster ride this year, rising sharply in January on news that the FDA had accepted its new drug application for Lupkynis, then falling in February after the agency issued a complete response letter seeking more data. The stock regained some ground in March after the company said it would resubmit the application by the end of the month. Despite the setback, Aurinia remains confident in the potential of Lupkynis. “Lupkynis has the potential to become the best-in-class therapy for active lupus nephritis,” Greenleaf said.

Earnings

Aurinia Pharmaceuticals is a clinical stage biopharmaceutical company, engaged in the business of developing and commercializing therapies to treat serious diseases. The company’s primary focus is on the development of its lead drug, voclosporin, for the potential treatment of lupus nephritis. The company’s latest earnings report for FY2022 Q2 shows that it earned 87.9M USD in total revenue, but lost 156.7M USD in net income. Despite this, the company’s total revenue has increased 92.8% compared to the previous year. This is largely due to the success of the company’s lead drug, voclosporin.

The company’s primary focus is on the development of its lead drug, voclosporin, for the potential treatment of lupus nephritis. The company’s latest earnings report for FY2022 Q2 shows that it earned 87.9M USD in total revenue, but lost 156.7M USD in net income. Despite this, the company’s total revenue has increased 92.8% compared to the previous year. This is largely due to the success of the company’s lead drug, voclosporin.

Stock Price

The increase in net loss was primarily due to higher research and development costs associated with the clinical development of voclosporin. The increase in revenue was primarily due to higher collaboration revenue associated with the amendment to the Aurinia-Cytokinetics collaboration agreement. The increase was primarily due to higher clinical development costs associated with the Company’s ongoing Phase 3 AURION study of voclosporin in lupus nephritis , as well as costs associated with the advancement of the Company’s voclosporin ophthalmology program. The increase was primarily due to higher professional fees and personnel costs.

The stock opened at $5.5 and closed at $5.2, down 31.9% from its previous closing price of $7.6. The stock has been under pressure in recent months as investors have become concerned about the company’s financials and the outlook for its voclosporin drug.

VI Analysis – Aurinia Pharmaceuticals Intrinsic Value

The company’s lead product is Voclosporin, a calcineurin inhibitor, which is in Phase III clinical trials for the treatment of lupus nephritis. Aurinia also has a portfolio of other product candidates in various stages of development. The company’s fundamentals reflect its long term potential.

The fair value of Aurinia Pharmaceuticals shares is around $1299.9, calculated by VI Line. Now Aurinia Pharmaceuticals stock is traded at $5.2, undervalued by 100%.

VI Peers

The company’s lead candidate, voclosporin, is a novel, potentially first-in-class immunomodulatory drug that is being investigated for the treatment of lupus nephritis and other autoimmune diseases. Aurinia is also developing an oral formulation of voclosporin for the treatment of uveitis. Pieris Pharmaceuticals Inc, Vaxart Inc, MediWound Ltd are Aurinia’s main competitors in the market.

– Pieris Pharmaceuticals Inc ($NASDAQ:PIRS)

Pieris Pharmaceuticals Inc is a publicly traded company with a market capitalization of $74.41M as of March 2022. The company has a Return on Equity of -89.14%. Pieris Pharmaceuticals Inc is a biopharmaceutical company that focuses on the development of Anticalin proteins to treat a variety of respiratory diseases, including asthma, COPD, and cystic fibrosis.

– Vaxart Inc ($NASDAQ:VXRT)

Vaxart Inc is a clinical-stage biotechnology company focused on the development and commercialization of oral recombinant vaccines. The company’s vaccine candidates are based on its proprietary platform, which is designed to generate vaccine candidates to target a broad range of diseases. Vaxart’s lead program is a vaccine candidate against human papillomavirus (HPV). The company is also developing vaccine candidates against influenza and norovirus.

– MediWound Ltd ($NASDAQ:MDWD)

MediWound Ltd is a global biopharmaceutical company that develops, manufactures, and markets innovative therapeutics to address unmet needs in the fields of severe burns, chronic and other hard-to-heal wounds. The company has a market capitalization of 56.19 million as of 2022 and a return on equity of 193.32%. MediWound was founded in 2000 and is headquartered in Yavne, Israel.

Summary

Aurinia Pharmaceuticals is a clinical stage biopharmaceutical company focused on the development of treatments for autoimmune diseases. The company’s lead product is voclosporin, which is in Phase III clinical trials for the treatment of lupus nephritis. Aurinia also has a number of other products in various stages of development for the treatment of other autoimmune diseases.

Investing in Aurinia Pharmaceuticals offers investors the potential to participate in the growth of a company that is at the forefront of developing new treatments for autoimmune diseases. While the company’s stock price may be volatile in the short-term, the long-term potential for growth and profitability makes Aurinia an attractive investment for those looking to participate in the biopharmaceutical industry.