Aurinia Pharma Shares Could Be A 2-Bagger From Here

Having demonstrated efficacy in its Phase 2b AURA-LV study for patients with active lupus nephritis, Aurinia Pharmaceuticals Inc AUPH's voclosporin appears “well-positioned in late-stage development to succeed,” Cantor Fitzgerald’s Elemer Piros said in a report.

Piros initiates coverage of the company with an Overweight rating and a price target of $14. Shares of Aurinia Pharma were up 5 percent in Tuesday's pre-market trading at $7.35.

Voclosporin Prospects

Aurinia Pharma’s leadership comprises members who have significant expertise in the execution of clinical trials for LN.

Piros further wrote, “Voclosporin has generated potent efficacy, as measured by durable complete remission rates, without unwanted liabilities such as nephrotoxicity, increased risk of drug-induced diabetes, and/or unacceptable risk of infection.” He expects voclosporin’s Phase 3 AURORA study to commence in Q2 2017.

The Phase 3 AURORA study could replicate the positive AURA-LV readout, and “the enhancement to the primary endpoint to assess 52-week data (previously 24-week data) further improves the powering of the study,” the analyst added.

Given the lack of any meaningful treatment options for LN and other treatments delivering underwhelming results in development, the commercial opportunity for voclosporin seems significant, Piros commented, estimating the peak US sales at $1.6 billion.

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