Canadian company, Aurinia Pharmaceuticals Inc. (AUPH) operates as a leading commercial-stage biopharmaceutical company. The company reported impressive financial results for the third quarter of fiscal 2024. Its revenue of $67.77 million surpassed the analysts’ expectations of $57.69 million. Also, AUPH’s EPS of $0.10 was above the estimate of $0.01.

Aurinia emphasizes the development and commercialization of therapies that target various diseases with insufficient medical reach. The company’s LUPKYNIS is used to treat adult patients with active lupus nephritis.

During the third quarter, the company announced that the first participant received a dose in a Phase 1 study of AUR200, a differentiated, potential best-in-class therapy for autoimmune diseases that targets both BAFF and APRIL. Also, in September, the Japanese Ministry of Health, Labour, and Welfare approved LUPKYNIS, triggering an additional $10 million payment from Otsuka Pharmaceutical Co., Ltd.

Moreover, the biotech segment itself is continuously widening its scope beyond labs and industries. The segment’s advancements and innovative solutions are transforming operations and processes across sectors like farming, food, healthcare, and so on. The global biotechnology industry market is projected to grow from $483 billion in 2024 to $546 billion in 2025, reflecting a CAGR of 13%.

Amid this robust background, AUPH’s operations will flourish due to its strong financial standing and continued innovations. The company recently implemented a strategic restructuring to sharpen its focus on continued LUPKYNIS® growth and the rapid development of AUR200. The restructuring will also enhance its operational efficiency and lower operating expense.

President and Chief Executive Officer of Aurinia, Peter Greenleaf, commented, “We are pleased to report continued strong momentum through the first nine months of the year. Going forward, our streamlined organization will enable us to lean further into key areas of the commercial LUPKYNIS business that have historically delivered optimal returns while at the same time accelerating the development of our important pipeline product, AUR200.”

Shares of AUPH have surged 37% over the past six months and 52.4% over the past nine months to close its last trading session at $7.77.

Let’s look at factors that could influence AUPH’s performance in the upcoming months.

Robust Financials

AUPH’s total net revenues increased 24.3% year-over-year to $67.77 million during the third quarter that ended September 30, 2024. Its income from operations stood at $11.75 million for the quarter.

In addition, the company’s net income amounted to $14.35 million and $0.10 per share, compared to a net loss of $13.45 million and $0.09 per share during the prior year’s quarter.

Also, as of September 30, 2024, the company’s cash, cash equivalents, and restricted cash and total assets stood at $37.14 million and $549.36 million.

Solid Historical Growth

AUPH’s revenue has grown at a CAGR of 45% over the past three years. The company’s tangible book value and total assets have increased 9.9% and 15.1% over the same timeframe.

Further, over the past five years, the company’s revenue and total assets have improved at CAGRs of 270% and 29.5%, respectively.

Favorable Analyst Estimates

Analysts expect AUPH’s revenue for the second quarter (ending June 2025) to increase 20.6% year-over-year to $68.99 million. The consensus EPS estimate of $0.13 for the same quarter reflects an 1166.7% year-over-year improvement. Also, the company has maintained an impressive consensus history, having topped the consensus revenue and EPS estimates in three of the trailing quarters.

Additionally, Street expects the company’s revenue and EPS for the fiscal year 2025 to increase 18.5% and 1715.6% year-over-year to $279 million and $0.58, respectively.

POWR Ratings Reflect Promise

AUPH’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. AUPH has an A grade for Growth, which is in sync with its impressive historical growth and solid financial performance in the last reported quarter.

In addition, the stock has a B grade for Sentiment, consistent with its favorable analysts’ expectations.

AUPH is ranked #12 in the 150-stock Medical – Pharmaceuticals industry.

Beyond what I have stated above, we have also given AUPH grades for Value, Quality, Momentum, and Stability. Get access to all the AUPH Ratings here.

Bottom Line

AUPH reported solid financial results for the third quarter of fiscal 2024. Analysts appear bullish about the company’s growth prospects, driven by robust demand for its innovative product offerings, evolving consumer demands, and advanced developments in the biotech space.

Given AUPH’s solid financials, optimistic analysts’ estimates, and promising growth outlook, this software stock could be an ideal buy now.

How Does Aurinia Pharmaceuticals Inc. (AUPH) Stack Up Against Its Peers?

While AUPH has an overall POWR Rating of A, investors could also check out these other stocks within the Medical – Pharmaceuticals industry with A (Strong Buy) or B (Buy) ratings: Supernus Pharmaceuticals, Inc. (SUPN), Taro Pharmaceutical Industries Ltd. (TARO), and Bristol-Myers Squibb Co. (BMY).

For exploring more A and B-rated medical stocks, click here.

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AUPH shares were trading at $7.56 per share on Tuesday afternoon, down $0.21 (-2.70%). Year-to-date, AUPH has declined -15.81%, versus a -0.79% rise in the benchmark S&P 500 index during the same period.

About the Author: Rjkumari Saxena

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...

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