Aurinia Pharmaceuticals gains on report investors pushing for sale

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Aurinia Pharmaceuticals (NASDAQ:AUPH) rose 2.8% on a report that a European-based investor group is campaigning for the biotech to begin a strategic review.

Aurinia holders, led by Switzerland-based MKT Tactical Fund, have written to the AUPH chairman, asking the board to hire a bank for a sale process, according to a Betaville "rare alert." The investors own just under a 5% stake in AUPH.

Aurinia (AUPH) has been the subject of rampant takeover speculation for months after Bloomberg reported in late October that Bristol-Myers (NYSE:BMY) indicated interest in acquiring AUPH. Biogen (NASDAQ:BIIB) has more recently been seen as a potential acquirer of AUPH after a Stat News report said that Biogen is working with Goldman Sachs to find potential targets for the company.

In early December Betaville reported that the AUPH was said to be close to deciding on a preferred bidder in its strategic review. There has also been speculation that GlaxoSmithKline (NYSE:GSK) may have interest, though GlaxoSmithKline (NYSE:GSK) denied the report.

Aurinia (AUPH) fell to seven-month low last week after several Wall Street analysts trimmed their price targets on the stock citing the company’s lackluster Q4 2021 results.

Comments

[tennis111]

There was an insider purchase by one of the directors last week of 5,000 shares at 10.82.

[Atari44]

The lower the price the better it is for potential buyers. It's much more attractive at $10 than $30.

[miragesfz]

I'm in Aurinia as I too believe in the drug and the potential for a takeover. Have been in for a while.

What I just struggle with here is how some people are coming up with the valuations that they are of the $45+ range. This company is just not worth as much as people want and hence the reason BMS and others have yet to pursue a transaction. Even with the war chests of money they have for acquisitions. Maybe with biotech prices much lower now they will be more interested but management will still command a premium I just dont think they will get.

Anyway, point is I would love for someone to point me to a MODEL of how they value the company so high. I just dont get it.

[Carlos54]

@miragesfz the key is management needs to WANT to sell the company , not to protect their sinecures and option granting machine. Maybe after they take this weeks new chunk of loot er options they will be more amenable-but I doubt it,.

[4UO2]

Another scam for someone to sell stock.

[dukenukum]

I've been in this a long time .... sold a few at around 32.00 but kept the majority .... at least my cost basis is well below current .... feel for the folks who bought in the high teens and twenties ... a sale would be good but I would prefer to get what it's worth .... I still think 45 is a good price .. any thing lower is leaving alot on the table

[MarineCorps]

Peter Greenleaf, sell the company. We implore you sir. $32 is fine. Do you need to borrow a blue inkstick?

[A SMARTER GREEK]

@MarineCorps hey I was in 65-66 👍🕺🏿/ it’s about time to sell / they haven’t been able to do a good job on raising the value/ Im sure a big partner can market / distribute and sell Big Tine😉Sell!!

[MarineCorps]

@A SMARTER GREEK Semper Fi

[JJPP]

A bit too late for this, no?

[sbrn]

@JJPP in the right hands there is a lot of value here.