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Aurinia (AUPH) Adds Two Candidates, Boosts Immunology Pipeline

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Aurinia (AUPH - Free Report) announced that it has acquired two new pipeline candidates, which will target rare autoimmune and kidney-related diseases. Both the candidates, renamed as AUR200 and AUR300 following the acquisition, will help expand the company’s immunology portfolio. Please note that both the candidates are currently in pre-clinical development.

AUR200 is a recombinant Fc fusion protein targeting B-cell. The candidate is designed to specifically block B-cell Activating Factor (“BAFF”) and A Proliferation-Inducing Ligand (“APRIL”). Both BAFF and APRIL promote B cell survival and differentiation.

AUR300 is a novel peptide therapeutic to modulate M2 macrophage — a type of white blood cell — via the macrophage mannose receptor CD206. Since M2 macrophage dysregulation drives fibrosis, AUR300 is designed to reduce M2 dysregulation and decrease inflammatory cytokines.

Shares of the company declined 9.8% on Aug 17, following the above-mentioned news. The decline was most likely attributable to the early-stage nature of the acquired candidates. In fact, the stock has declined 5.7% so far this year in comparison with the industry’s 13.5% decline.

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Per the press release, Aurinia anticipates an investigational new drug (“IND”) filing for AUR200 by 2022-end, while initiating clinical studies for AUR300 in first-half 2023.

AUR200 was acquired by the company from privately-held Thunderbolt Pharma on purchase of the latter’s entire common stock. Aurinia made an upfront payment of $750,000 to Thunderbolt’s shareholders and will also make milestone payments upon acceptance of IND by the FDA, which will allow clinical studies to begin. Thunderbolt’s shareholders are also eligible to receive a low single-digit royalty on any future sale of the candidate.

The company acquired AUR300 from privately-held Riptide Bioscience through a licensing and research agreement. Riptide received an upfront payment of $6 million, and is also eligible to receive future milestone payments as well as royalties on sales.

Please note that Aurinia received FDA approval in January 2021 for Lupkynis to treat active lupus nephritis (“LN”), a disease that causes irreversible kidney damage. It is also the first drug in the company’s commercial portfolio. In June 2021, it filed a marketing authorization application seeking approval for the drug to treat LN patients in Europe.

Zacks Rank & Stocks to Consider

Aurinia currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Moderna (MRNA - Free Report) , Repligen Corporation (RGEN - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Moderna’s earnings per share estimates for 2021 have increased from $25.19 to $29.04 in the past 30 days. The same for 2022 has risen from $17.71 to $22.26 over the same period. The stock has rallied 284.7% in the year so far.

Repligen’s earnings per share estimates for 2021 have increased from $2.26 to $2.76 in the past 30 days. The same for 2022 has risen from $2.56 to $3.02 over the same period. The stock has rallied 34.1% in the year so far.

Vertex’s earnings per share estimates for 2021 have increased from $11.22 to $12.37 in the past 30 days. The same for 2022 has risen from $12.24 to $13.13 over the same period.

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