How do you feel about Aurinia, hey will be cashflow positive soon. Recently they announced a 150 million buy back with a 25% staff reduction. They are also ending a strategic review. Sales are ramping up looks like a timely buy with share price at a low. Your thoughts are appreciated.
AUPH is a speculative play but the momentum has been very negative. Losses widened unexpectedly in Q4 earnings recently released and with the strategic reveiw concluding the company only received one non-binding expression of interest, which didn't result in a formal offer. The job cuts and announcement to discontinue its development of AUR200 and AUR300 research and development programs may not necessarily be positive developments, but rather fallout of not being able to find a buyer. Some analysts cut their price targets as well. The increase in sales is positive and AUPH is expected to become profitable next year. It is very speculative and trades at 3.7x forward sales which is OK. We would rather sit this one out until there is some more positive momentum.