Is Aurinia’s Share Price Undervalued?
On August 16, 2016, Aurinia’s share price had dove in spite of its Phase 2B study meeting the essential endpoints in the treatment of Lupus Nephritis with Aurinia’s lead drug voclosporin.
Analysts was entirely shocked by the negative response to Aurinia’s stock price after the discharge on August 15 of the exceptionally positive Phase 2B top line information from the twofold visually impaired 265 patient AURA investigation of voclosporin in the treatment of Lupus Nephritis (“LN”). The essential endpoints in the study were met, and analysts anticipated that the stock price would physically increment (not plunge!).
However, it creates the impression that the business sector’s essential concern was AUPH’s declaration on August 15 that 13 deaths had happened amid the 265 patient twofold visually impaired Phase 2B study. The business sector essentially did not trust the organization when it expressed that the 13 deaths in the Phase 2B study were random to voclosporin.
AUPH put forth the expression in its underlying public statement on August 15 setting out the accomplishment of the Phase 2B study in meeting its essential endpoints, and in the video chat that took after on August 15; the Company was just charmed with the positive trial comes about which met the essential endpoints and voclosporin could be another leap forward treatment for Lupus Nephritis.
Upon the business sector learning of the 13 deaths (and overlooking Aurinia’s announcement that the death were inconsequential to voclosporin), AUPH’s offer cost dove from US $4.25 to roughly US $2.00. The offer value keeps on exchanging the $1.95 value range. In analyst’s perspective, the AUPH’s stock price is considerably mispriced and has been unjustifiably rebuffed.