Aurinia Pharmaceuticals Finds No Buyer After Strategic Business Review, Launches Stock Buyback

Aurinia Pharmaceuticals Inc AUPH reported a fourth-quarter 2023 EPS loss of $(0.19), missing the consensus of $(0.16) and a bit higher than $(0.18) a year ago.

The company reported sales of $45.1 million, beating the consensus of $44.33 million.

Aurinia said it will immediately discontinue its future development of AUR200 and AUR300 research and development programs and prioritize resource allocation.

In January, Aurinia submitted its FDA Investigational New Drug application for AUR200, a potential therapy for B-cell mediated autoimmune diseases. Aurinia planned to initiate a Phase 1 study in the first half of 2024.

The move will result in a one-time charge in the first quarter of 2024 of approximately $11 – $15 million and expected operational cost savings of approximately $50 million – $55 million annually, with approximately 75% of the savings being recognized in 2024, excluding the one-time restructuring charge in the first quarter of 2024.

The company’s board initiated a strategic review at the end of June 2023. Together with management, JP Morgan, the review process engaged with more than 60 parties, receiving only one non-binding expression of interest, which included a due diligence process but did not result in a formal offer.

Additionally, in 2018, the company, under previous management and at the board’s discretion, engaged an investment bank to conduct a confidential strategic review process. 

During the 2018 process, the company received only one non-binding expression of interest to acquire the company, which included a due diligence process but did not result in a formal offer.

Outside of these two expressions of interest, the company has never received an offer to acquire the company. The board and management remain open to exploring opportunities.

Stock Buyback: Aurinia Pharmaceuticals has also initiated a share repurchase program of up to $150 million.

Guidance: Aurinia Pharmaceuticals reaffirms fiscal year 2024 revenue guidance of $200 million-$220 million compared to the consensus of $217.87 million.

Price Action: AUPH shares are down 28.70% at $5.68 on the last check Thursday.