BIIB - Patent challenge on Aurinia's Lupkynis could impact takeover interest near-term - Cantor

• Potential M&A interest in Aurinia Pharmaceuticals ( NASDAQ: AUPH ) could be hampered -- at least in the short-term -- by a board's review of a patent related to the company's lupus drug Lupkynis (voclosporin), according to Cantor Fitzgerald.
• Shares are down 7% in late Tuesday morning trading.
• In a Tuesday decision, the Patent Trial and Appeal Board said it will conduct an inter partes review of Patent No. 10,286,036.
• Analyst Olivia Brayer said the decision "adds more meaningful risk to Lupkynis' intellectual property position," adding "the risk it adds to Lupkynis revenues looking to 2027+, and in our view the bigger readthrough is that an ongoing IPR could take potential M&A off the table for the next 12 months."
• Cantor is overweight on Aurinia ( AUPH ) with a $25 price target (138% upside based on Monday's close).
• Aurinia ( AUPH ) has been speculated as a takeover target from Bristol-Myers Squibb ( BMY ), Biogen ( BIIB ), and Otsuka ( OTCPK:OTSKF ). However, the company recently hired a new R&D chief, easing speculation .

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