Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) revealed yesterday evening that its Board of Directors has chosen Dr. Richard Glickman, the biotech firm’s founder and Chairman, to take on former CEO Charlie Rowland’s stead, who recently resigned as CEO and member of the Board.
H.C. Wainwright analyst Ed Arce cheers this decision, singing the praises of Dr. Glickman as prestigious venture capitalist as well as a lucrative serial entrepreneur who brings incomparable experience to the table. In reaction to the firm’s new CEO and on the heels of a phone conversation with Dr. Glickman last night, the analyst reiterates a Buy rating on shares of AUPH with an $8 price target, which represents a just under 136% increase from where the stock is currently trading.
Arce believes, “In our view, Dr. Glickman […] brings a unique and invaluable set of experiences best suited to developing and establishing voclosporin as the keystone in a new standard-of-care (SOC) treatment regimen for lupus nephritis (LN).”
“Furthermore, we believe he is acutely aware of the need to foster and strengthen all stakeholder relationships, while maximizing shareholder value. In particular, we believe Dr. Glickman will be more active than his two predecessors in conducting in-person meetings with current and prospective investors, at various forums and venues, to present the potential of voclosporin for LN, and support AUPH. With LN, a deadly orphan indication that is still often misunderstood (some still doubt that none of the deaths in AURA-LV were drug related), we believe the more outreach, including via KOLs and patient advocacy, the better. With Dr. Glickman now at the helm, we affirm our Buy rating on AUPH,” Arce surmises.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, four-star analyst Ed Arce is ranked #502 out of 4,382 analysts. Arce has a 46% success rate and realizes 11.1% in his annual returns. When recommending AUPH, Arce yields 17.4% in average profits on the stock.
TipRanks analytics indicate AUPH as a Strong Buy. Out of 3 analysts polled by TipRanks in the last 3 months, all 3 are bullish on Aurinia stock. With a return potential of 135%, the stock’s consensus target price stands at $8.00.