AUPH - Aurinia Pharma could see high $20s to low $30s a share in takeover - analyst

2023-06-30 14:47:04 ET

Aurinia Pharmaceuticals ( NASDAQ: AUPH ) could see prices in the high $20s to low $30s per share in a takeout at premium multiples, according to RBC, after the company announced Thursday it was exploring alternatives. Aurinia ( AUPH ) rose 9.1%.

Based on recent acquisitions, Aurinia ( AUPH ) would be more likely to see $18–$20 per share in a takeover, RBC analyst Douglas Miehm, who has an outperform rating with a $13 price target on AUPH, wrote in a note on Thursday.

The company has been under pressure from some shareholders in recent months, d emanding the company put itself up for sale. Last month, two board members said they planned to leave the board a fter receiving less than majority support in a shareholder vote.

Aurinia ( AUPH ) has been the subject of takeover speculation for months since Bloomberg reported in October 2021 about a potential bid from Bristol-Myers Squibb ( BMY ).

TD Cowen analyst Stacy Ku wrote in a note that Aurinia ( AUPH ) could see "high teens" per share in a takeover given synergies from the acquiring company, though $15 is more plausible.

"Given the likely long runway to further leverage the Lupkynis launch and our consultants' ongoing encouraging views, we believe that $15 is indeed possible," Ku, who has an outperform and $15 price target, wrote on Thursday.

The stock was also seen as a takeover target in January after a patent settlement with Sun Pharmaceuticals. The shares surged 38% on Jan. 3 on news of the settlement as the patent overhang was lifted.

More on Aurinia

• Aurinia Pharmaceuticals: Still In The Game With Lupkynis Sales

• Aurinia: Despite Milder Shareholder Vote, A Bid To Sell Is Still Not Over

• Aurinia Pharmaceuticals: Some Improvement In Topline, But A Buyout Alone Will Unlock Value

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