For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Aurinia Pharmaceuticals (AUPH) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.Aurinia Pharmaceuticals is a member of our Medical group, which includes 949 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank ...

Core Insights - Aurinia Pharmaceuticals is generally favored over PMV Pharmaceuticals based on a comparison of various financial and operational metrics, outperforming PMV in 10 out of 13 factors analyzed [10]. Analyst Ratings - Aurinia Pharmaceuticals has a consensus target price of $17.67, suggesting a potential upside of 12.67%, while PMV Pharmaceuticals has a target price of $5.00, indicating a potential upside of 278.79% [2]. Risk & Volatility - Aurinia Pharmaceuticals has a beta of 1.3, indicating its share price is 30% more volatile than the S&P 500, whereas PMV Pharmaceuticals has a beta of 1.54, meaning its share price is 54% more volatile than the S&P 500 [3][4]. Institutional and Insider Ownership - 36.8% of Aurinia Pharmaceuticals shares are held by institutional investors, compared to 90.2% for PMV Pharmaceuticals. Insider ownership stands at 12.2% for Aurinia and 7.6% for PMV [5]. Profitability - Aurinia Pharmaceuticals has a net margin of 23.31%, return on equity of 20.06%, and return on assets of 13.81%. PMV Pharmaceuticals does not have net margin data available, with a return on equity of -55.34% and return on assets of -51.01% [7]. Earnings and Valuation - Aurinia Pharmaceuticals reported gross revenue of $265.81 million, a net income of $5.75 million, and earnings per share of $0.56, with a price-to-earnings ratio of 28.00. PMV Pharmaceuticals has no revenue reported, a net loss of $58.71 million, earnings per share of -$1.60, and a price-to-earnings ratio of -0.83 [9].

Core Viewpoint - Aurinia Pharmaceuticals (AUPH) is positioned as a strong investment opportunity due to its significantly improving earnings outlook, with analysts raising their earnings estimates, which is expected to positively influence the stock price [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Aurinia's earnings prospects is reflected in the upward revisions of earnings estimates, which historically correlate with stock price movements [2]. - The current-quarter earnings estimate is $0.21 per share, representing a 133.3% increase from the previous year, with a 21.57% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, the earnings estimate stands at $0.78 per share, indicating a remarkable 1,850.0% increase from the year-ago figure, with four estimates moving higher recently [7]. Zacks Rank and Performance - Aurinia currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on promising estimate revisions [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500, suggesting a strong potential for Aurinia's stock [8]. Recent Stock Performance - Aurinia shares have increased by 20.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [9].

Core Points - The resignation of George Tidmarsh from the FDA occurred shortly after being placed on administrative leave due to personal conduct concerns [1][4] - Tidmarsh was sued for defamation by Aurinia Pharmaceuticals, which accused him of having a personal vendetta against the company's chairman [2][6] - Tidmarsh's LinkedIn post, which labeled Aurinia's lupus drug as toxic, led to a significant drop in the company's stock price [2][9] Group 1: Tidmarsh's Resignation and Legal Issues - Tidmarsh was placed on administrative leave after serious concerns about his personal conduct were raised [4] - He resigned two days later, with the HHS Secretary emphasizing the expectation of high ethical standards [4] - Aurinia Pharmaceuticals filed a lawsuit against Tidmarsh, claiming he harbored a vendetta against its chairman, Kevin Tang [2][6] Group 2: Impact on Aurinia Pharmaceuticals - Following Tidmarsh's LinkedIn post, Aurinia's shares fell approximately 20% before recovering slightly [5][9] - The company’s chairman, Kevin Tang, has a history with Tidmarsh, having previously asked him to resign from multiple positions due to management concerns [6][7] - Aurinia alleged that Tidmarsh sent harassing messages to Tang and targeted companies associated with him after joining the FDA [7][8] Group 3: Tidmarsh's Claims and Concerns - Tidmarsh claimed his leave was a result of raising concerns about the legality of a drug approval program, which he believed politicized the review process [3] - He later clarified that his LinkedIn post reflected his personal views and not those of the FDA [9]

Core Insights - Aurinia Pharmaceuticals Inc. is focused on developing therapies for autoimmune diseases and is part of the Zacks Medical - Drugs industry [1] - RBC Capital set a price target of $15 for AUPH, indicating a potential upside of approximately 5.12% from its current trading price of $14.27 [1] Financial Performance - Aurinia reported earnings of $0.23 per share for Q3 2025, surpassing the Zacks Consensus Estimate of $0.16, representing a positive surprise of 43.75% and an increase from $0.10 per share in the same quarter last year [2][6] - The company's revenue for the quarter ending September 2025 was $73.47 million, exceeding the Zacks Consensus Estimate by 7.31% and marking an increase from $67.77 million in the same period last year [3][6] - Aurinia has consistently surpassed consensus earnings and revenue estimates in each of the last four quarters, showcasing strong financial performance and growth trajectory [2][3] Stock Performance - AUPH's stock price has increased by 8.35%, currently priced at $14.27, with a fluctuation range between a low of $13.50 and a high of $16.20 today [4][6] - The stock's highest price over the past year was $16.20, while the lowest was $6.55, indicating significant volatility [4] - The company has a market capitalization of approximately $1.88 billion, with a trading volume of 4,972,046 shares today [5]

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Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $73.5 million, an increase of 8% from $67.8 million in Q3 2024. Excluding a one-time milestone payment in 2024, total revenue increased by 27% year-over-year [4][5] - Net product sales of LUPKYNIS were $70.6 million, up 27% from $55.5 million in 2024 [4] - Net income was $31.6 million, up 119% from $14.4 million in 2024, with diluted earnings per share at $0.23, up 130% from $0.10 in 2024 [4] - Cash flows from operating activities were $44.5 million, up 162% from $17 million in 2024 [4] Business Line Data and Key Metrics Changes - LUPKYNIS sales grew at a rate of 27% year-over-year, prompting the company to raise its sales guidance for 2025 to $265 million-$270 million [3][6] - For the nine months ended September 30, 2025, net product sales of LUPKYNIS were $197.2 million, up 24% from $158.6 million in 2024 [5] Company Strategy and Development Direction - The company is focused on advancing its Atenercept program toward clinical studies in two autoimmune diseases, following positive phase one results [3][12] - The strategy includes sharpening commercial focus on high-volume prescribers, particularly rheumatologists, to drive growth in LUPKYNIS sales [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, citing positive momentum from the ACR guidelines and consistent performance in sales [26][49] - The company anticipates further details on the APRIL/BAF program to be disclosed in early 2026, indicating ongoing development and strategic planning [25][42] Other Important Information - The company filed a complaint against Dr. George Tidmarsh regarding statements about BacloSporin, which is pending in court [2] - New analyses of LUPKYNIS data reinforce its clinical profile, showing a 53% reduction in the risk of renal-related events or death [8] Q&A Session Summary Question: Insights on prescriber habits and LUPKYNIS usage - Management noted consistent growth in rheumatology prescribers and emphasized the positive impact of ACR guidelines on treatment practices [16][19] Question: Trends into Q4 and confidence in growth - Management expressed confidence in continued positive momentum for LUPKYNIS and plans to disclose more about the APRIL/BAF program in early 2026 [26][25] Question: FDA information request details - Management could not specify the trigger for the FDA's information request but emphasized the favorable data presented [32][41] Question: Persistence trends for LUPKYNIS - Management reported an upward trend in patient persistence on LUPKYNIS, supported by positive clinical data [55] Question: Atenercept dosing in clinical trials - Management confirmed that 150 mg dosing will be used in future studies, with further details to be disclosed in 2026 [62]

Core Insights - Aurinia Pharmaceuticals reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of +43.75% [1] - The company achieved revenues of $73.47 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.31% and increasing from $67.77 million year-over-year [2] - Aurinia's stock has increased approximately 46.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $70.53 million, while for the current fiscal year, the estimate is $0.62 on revenues of $271.52 million [7] - The estimate revisions trend for Aurinia was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Drugs industry, to which Aurinia belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Xencor, is expected to report a quarterly loss of $0.72 per share, with revenues projected to be $25.66 million, reflecting a year-over-year increase of 139.6% [9]

Financial Performance - For the three and nine months ended September 30, 2025, net product sales were $70.6 million and $197.2 million, representing increases of 27% and 24% compared to $55.5 million and $158.6 million for the same periods in 2024[65]. - Total revenue for the three months ended September 30, 2025, was $73.5 million, a 8.4% increase from $67.8 million in the same period in 2024[68]. - Gross margin for the three and nine months ended September 30, 2025, was 89% and 88%, respectively, compared to 91% and 87% for the same periods in 2024[77]. - License, collaboration, and royalty revenue for the three and nine months ended September 30, 2025, was $2.8 million and $8.8 million, respectively, down from $12.3 million and $16.7 million in the same periods in 2024[73]. Cash Flow and Financial Position - Cash flows from operating activities for the nine months ended September 30, 2025, were $90.0 million, significantly up from $14.3 million for the same period in 2024[66]. - As of September 30, 2025, the company had cash, cash equivalents, restricted cash, and investments totaling $351.8 million, slightly down from $358.5 million at December 31, 2024[67]. - Cash and cash equivalents as of September 30, 2025, were $351.8 million, a slight decrease from $358.5 million at December 31, 2024[89]. - The company repurchased $12.2 million of its common shares for $98.2 million during the nine months ended September 30, 2025[89]. - The company plans to fund future operations with existing cash or future cash flows from operating activities[90]. - Additional capital may be raised through equity or debt financings if necessary, though favorable terms are not guaranteed[91]. Expenses - Selling, general and administrative (SG&A) expenses decreased to $26.2 million for the three months ended September 30, 2025, down from $42.4 million in the same period in 2024, primarily due to strategic restructuring efforts[79]. - The company expects SG&A expenses to remain lower in 2025 compared to 2024 as it realizes the full benefits of its strategic restructuring efforts[81]. - R&D expenses for Q3 2025 totaled $8.435 million, a 276% increase from $3.047 million in Q3 2024[83]. - Total R&D expenses for the nine months ended September 30, 2025, were $21.610 million, up 70% from $12.678 million in the same period of 2024[83]. - Restructuring expenses for the nine months ended September 30, 2025, were $1.6 million, down from $7.8 million in the same period of 2024[87]. - Other net expenses for Q3 2025 were $0.9 million, compared to $4.6 million in Q3 2024[88]. Future Plans and Developments - The company plans to initiate clinical studies with aritinercept in two autoimmune diseases by the end of 2025 following positive Phase 1 study results[64]. - The increase in net product sales is primarily attributed to a rise in the number of LUPKYNIS cartons sold to specialty pharmacies, driven by further market penetration[70]. - The company expects R&D expenses to continue increasing as development activities progress[85].

Group 1: FDA and Aurinia Pharmaceuticals - George Tidmarsh has resigned as director of the FDA's Center for Drug Evaluation and Research amid accusations of making false statements about Aurinia Pharmaceuticals and its lupus nephritis treatment [4][3] - Aurinia has filed a federal lawsuit against Tidmarsh, alleging false statements and solicitation of a bribe, which Tidmarsh claims is a result of a toxic environment at the FDA [4][3] - Tidmarsh criticized the FDA's new National Priority Review Voucher program, suggesting it could alter drug approval processes without adequate legal support [4] Group 2: Autonomous Driving - Baidu's Apollo Go unit has achieved a milestone of over 250,000 fully driverless rides per week as of October 31, matching the performance of Waymo [5] - The total number of robotaxi rides operated by Apollo Go during the quarter ended June 30 was 2.2 million, averaging around 169,000 rides per week [6] Group 3: Nvidia and U.S. Market - President Trump announced that Nvidia's most advanced Blackwell chips will be exclusively available to U.S. companies, restricting access to other countries [7]