Aurinia Pharmaceuticals Inc. (AUPH)

Price$15.83Cached quoteAs of 2026-10-03 18:52 UTC

AI: Undervalued

Price checkValuation looks modest against cash generation, though single-product risk keeps the discount understandable.

Aurinia’s latest balance sheet and quote imply an equity value a little above $2.1 billion and a cash-adjusted enterprise value near $1.75 billion. Enterprise value means the operating business value after subtracting cash and adding debt-like obligations. Against management’s 2026 revenue midpoint, that is roughly 5.5 times sales; against annualized first-half operating cash flow, about 10 times. Those multiples look reasonable-to-low for a profitable drug company still growing double digits, but they deserve a concentration discount.

Big pictureLUPKYNIS is growing, profitable, and cash-generative, while economic cyclicality is relatively low.

Aurinia Pharmaceuticals Inc., listed on Nasdaq as AUPH, generated $160.9 million of first-half revenue and $71.8 million of net income, while operating cash flow reached $85.1 million. Management reiterated 2026 revenue guidance of $315 million to $325 million. Lupus nephritis treatment demand is medically driven, so ordinary economic cycles matter less than product uptake, payer coverage, competition and prescribing patterns. The main valuation issue is therefore not recession sensitivity; it is whether one commercial franchise can keep compounding.

Business strengthLarge liquidity, minimal funded debt, and high margins give Aurinia unusual financial flexibility.

At June 30, Aurinia held $443.1 million of cash, equivalents, restricted cash and investments, versus about $100 million of current liabilities. The balance sheet showed no conventional bank or bond debt, though finance-lease liabilities totaled roughly $60 million. First-half operating cash flow improved sharply, supporting internal funding of operations and pipeline work. Capital allocation is active: Aurinia repurchased 5.0 million shares for $74.9 million, but equity-award issuances partly offset that reduction, so investors should watch dilution—new shares that reduce each holder’s ownership percentage.

What could change the storyPatent durability and pipeline success could unlock upside; stalled growth or failed studies would erase it.

Bull case: LUPKYNIS sustains low-to-mid-teens growth for several years, remaining patent disputes resolve on terms similar to Teva’s December 2036 entry date, and PRESERVE or aritinercept adds meaningful new demand. Bear case: product growth slows to low single digits, competitors or payers pressure usage and pricing, other generic challengers secure earlier entry, or pipeline programs disappoint while research spending rises. The current valuation does not require heroic assumptions, which supports an Undervalued verdict, but the thesis still depends heavily on one commercial product.

AI: News

Teva Patent SettlementTeva settlement pushes that generic competitor’s earliest U.S. voclosporin launch to December 2036.

On August 19, Aurinia settled its LUPKYNIS patent litigation with Teva. Teva stipulated that two Aurinia patents are valid, enforceable and would be infringed, and agreed not to launch its generic voclosporin product before December 7, 2036, subject to defined contingencies and FDA approval. This materially improves visibility on the franchise life against Teva, but Aurinia said litigation continues against several other generic challengers, so patent risk is reduced rather than eliminated.

Strong Second QuarterSecond-quarter sales and earnings grew strongly, while management kept full-year guidance unchanged.

On August 6, Aurinia reported second-quarter revenue of $83.2 million and net income of $37.4 million. First-half operating cash flow reached $85.1 million, and cash plus investments stood at $443.1 million at quarter-end. Management reiterated 2026 total-revenue guidance of $315 million to $325 million and LUPKYNIS product-sales guidance of $305 million to $315 million. The combination of rising sales, positive earnings and expanding cash generation supports the balance-sheet durability behind the valuation case.

PRESERVE Study StartsAurinia started a Phase 4 combination study aimed at improving lupus nephritis response rates.

On July 6, Aurinia initiated PRESERVE, a Phase 4 multicenter study testing LUPKYNIS with belimumab, obinutuzumab or anifrolumab. Planned enrollment is about 150 patients at roughly 50 U.S. sites, with complete renal response at six months as the primary endpoint. The study could strengthen LUPKYNIS’s role in multi-drug treatment if results are favorable, although it is not yet evidence of improved outcomes and will require clinical readout before affecting the base-case revenue outlook.

Kezar Acquisition CompletedAurinia completed its Kezar acquisition, adding assets while preserving much of Kezar’s cash economics.

On May 11, Aurinia completed the acquisition of Kezar Life Sciences after a cash tender offer. Aurinia’s later quarterly filing recorded total purchase consideration of about $55.5 million and noted net cash and tax-related assets acquired, while former Kezar holders retained contingent rights tied to zetomipzomib and other proceeds. The transaction broadens optionality but also shows management is willing to deploy capital beyond buybacks, making future pipeline spending and acquisition discipline important valuation variables.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$283.1M	$235.1M	$175.5M	$134.0M	$45.6M	$50.1M	$318,000	$463,000	$418,000	$173,000
Gross profit	$250.4M	$206.9M	$161.4M	$128.4M	$44.5M	$50.1M	$318,000	—	—	—
Gross margin	88.46%	87.99%	91.94%	95.77%	97.61%	100.00%	100.00%	—	—	—
Research & development	$32.5M	$20.8M	$49.6M	$45.0M	$51.1M	$50.3M	$52.9M	$41.4M	$33.9M	$14.5M
Operating expenses	$178.1M	$239.8M	$267.2M	$245.5M	$226.3M	$154.4M	$91.3M	$55.7M	$47.3M	$25.2M
Operating income	$104.9M	−$4.7M	−$91.7M	−$111.5M	−$180.7M	−$104.3M	−$90.9M	−$55.2M	−$46.9M	−$25.0M
Operating margin	37.06%	−1.99%	−52.24%	−83.17%	−396.31%	−208.09%	−28,598.43%	−11,930.89%	−11,212.44%	−14,466.47%
EBITDA	$124.4M	$14.8M	−$80.0M	−$108.8M	−$178.0M	−$102.9M	−$89.8M	−$53.9M	−$45.4M	−$23.5M
EBITDA margin	43.94%	6.28%	−45.61%	−81.15%	−390.25%	−205.35%	−28,230.19%	−11,647.30%	−10,864.11%	−13,611.56%
Net income	$287.2M	$5.8M	−$78.0M	−$108.2M	−$181.0M	−$102.7M	−$88.4M	−$53.1M	−$70.8M	−$23.3M
Net profit margin	101.47%	2.45%	−44.45%	−80.71%	−396.81%	−204.88%	−27,794.03%	−11,464.15%	−16,935.89%	−13,465.32%
Basic EPSper basic share	$2.14	$0.04	-$0.54	-$0.76	-$1.40	-$0.87	-$0.95	-$0.63	-$0.92	-$0.66
Diluted EPSper diluted share	$2.07	$0.04	-$0.54	-$0.76	-$1.40	-$0.87	-$0.95	-$0.63	-$0.92	-$0.66

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

9.81%of listed shares

TANG CAPITAL MANAGEMENT LLC13.04M shares · Jun 30, 2026

View holders

Top 20 reported holders of AUPH
Holder	% owned
TANG CAPITAL MANAGEMENT LLC	9.81%13.04M shares
TANG KEVIN	≈9.20%12.23M shares
BlackRock, Inc.	6.16%8.19M shares
GOLDMAN SACHS GROUP INC	4.23%5.62M shares
NEA Management Company, LLC	2.99%3.97M shares
TWO SIGMA INVESTMENTS, LP	2.61%3.47M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	2.46%3.26M shares
STATE STREET CORP	1.95%2.59M shares
MORGAN STANLEY	1.74%2.31M shares
MARSHALL WACE, LLP	1.54%2.04M shares
Greenleaf Peter	≈1.38%1.84M shares
GEODE CAPITAL MANAGEMENT, LLC	1.28%1.7M shares
RENAISSANCE TECHNOLOGIES LLC	1.16%1.55M shares
D. E. Shaw & Co., Inc.	1.06%1.41M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.02%1.36M shares
JACOBS LEVY EQUITY MANAGEMENT, INC	0.93%1.23M shares
JUPITER ASSET MANAGEMENT LTD	0.82%1.09M shares
LSV ASSET MANAGEMENT	0.81%1.08M shares
NOMURA HOLDINGS INC	0.74%978.6K shares
AQR CAPITAL MANAGEMENT LLC	0.71%948.75K shares

Percentages use 132.91M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys23$62.27M disclosed value

Sells (SEC code S)14$6.34M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 2, 2026Form 4	TANG KEVIN +1Chief Executive Officer	BuyCommon Shares · indirect	206.0K	$15.28	$3.15M	13.04M
Jun 1, 2026Form 4	TANG KEVIN +1Chief Executive Officer	BuyCommon Shares · indirect	99	$15.34	$1.5K	12.84M
Jun 1, 2026Form 4	TANG KEVIN +1Chief Executive Officer	BuyCommon Shares · indirect	343.5K	$15.28	$5.25M	12.84M
May 29, 2026Form 4	TANG KEVIN +1Chief Executive Officer	BuyCommon Shares · indirect	262.7K	$15.31	$4.02M	12.49M
May 29, 2026Form 4	TANG KEVIN +1Chief Executive Officer	BuyCommon Shares · indirect	2.3K	$15.35	$35.3K	12.23M

Review ownership filings at SEC.gov ↗

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Aurinia Pharmaceuticals Inc. (AUPH)

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