what happened
Shares of Aurinia Pharmaceutical Products (NASDAQ: AUPH), a biotechnology company in the middle capitalization, rose 26% on Monday. The share rose higher in response to the FDA’s approval of the oral lupus nephritis, Lupkynis (also known as voclosporin).
Lupkynis has been indicated for patients with active lupus nephritis who are already receiving immunosuppressive therapy. Lupus nephritis is an advanced form of systemic lupus erythematosus, an autoimmune disease that can lead to irreversible kidney damage, dialysis and even death. Lupkynis is the first oral treatment approved for this condition.
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Approximately
About 100,000 adults in the U.S. are currently affected by lupus nephritis, according to Aurinia’s own estimates. It is believed that a similar number suffer from the condition in Europe. Although relatively uncommon, Aurinia said it would earn about $ 65,000 per patient annually after calculating rebates, channel discounts and patients who discontinue treatment early. Wall Street analysts again think that this important new lupus nephritis therapy could sell for more than $ 1 billion a year early in the new decade.
Now what
Is Aurinia’s share still a buy after the significant shift northwards? Although it may take a few years before Lupkynis’ sales increase, it appears that the company is a strong buyout candidate following this approval. After all, Aurinia’s market capitalization is still less than $ 2.5 billion. Even at a price of $ 5 billion, it is a direct bargain for any of the major pharmacies interested in lupus. In short, it may be worthwhile to add this biopharma stock to your portfolio soon.