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  5. AUPH: Aurinia Pharmaceuticals will become self sustaining most likely next quarter, they have had two revenue upgrades in a row! [Aurinia Pharmaceuticals Inc]
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Q: Aurinia Pharmaceuticals will become self sustaining most likely next quarter, they have had two revenue upgrades in a row! But share price does not appear to reflect this. Shareholders are putting managements feet to the fire looking for alignment to creating value for investors.
What do you folks think is this one ever going to launch?
Asked by Mark on August 09, 2023
5i Research Answer:

Well, it is up 125% this year so that's a pretty good start!. It has $250M cash and the revenue ramp does look good. It is still losing money, with negative cash flow (-$39M last 12 months) but losses are decreasing. The 2Q results nicely beat sales estimates and the loss was less than expected. Guidance was raised. AUPH launced a strategic review in June, and one possibility is selling the company. On the call, management sort of side-stepped the issue but the review is continuing. While its size, sector and valuation (8X sales) add risks, we think the momentum in price and sales may continue for a period of time. If there is no sale the stock of course will dip, but these reviews take time, and meanwhile the fundamentals do look to be improving.