Aurinia Pharmaceuticals Inc (AUPH) Shares Fall on Back of Equity Dilution


After a massive run-up, Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) shares are falling over 25% in pre-market trading, after the drug maker announced the pricing of its underwritten public offering of its common shares. Aurinia agreed to sell 22,300,000 common shares at a public offering price of $6.75 per share, a 36% discount to yesterday’s closing price.

Gross proceeds to Aurinia from this Offering are $150.5 million before underwriter discounts and commissions and other expenses. In connection with this Offering, Aurinia has granted the underwriters a 30-day option to purchase up to 3,345,000 million additional Common Shares. The Offering is expected to close on or about March 20, 2017, subject to the satisfaction of customary closing conditions.

On the ratings front, Aurinia has been the subject of a number of recent research reports. In a report released yesterday, FBR analyst Vernon Bernardino reiterated a Buy rating on AUPH, with a price target of $9.00, which reflects a potential downside of 15% from last closing price. On March 10, Canaccord’s John Newman reiterated a Buy rating on the stock and has a price target of $10.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vernon Bernardino and John Newman have a yearly average loss of 6.8% and 4.9% respectively. Bernardino has a success rate of 31% and is ranked #4373 out of 4517 analysts, while Newman has a success rate of 40% and is ranked #4348.

Aurinia Pharmaceuticals, Inc. operates as a biopharmaceutical company. It focuses on discovery and development of immunomodulating therapeutics. Its products include voclosporin and non-immunosuppressive cyclosporine analogue molecules for the treatment of lupus nephritis.

 

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