Core Insights - Jefferies has released a report on the outlook for the U.S. biotech industry in 2026, highlighting key clinical trial data disclosures, new drug approvals, and policy dynamics that could lead to value re-evaluation for companies in the sector [1] Six Preferred Stocks - Jefferies identified six companies as core recommendations for 2026 based on market catalysts and valuation potential: - Dianthus Therapeutics (DNTH.US), target price $66: Focused on claseprubart for various neuromuscular diseases, with peak revenue estimated at $2 billion [2] - Taysha Gene Therapies (TSHA.US), target price $11: TSHA-102 for Rett syndrome, with peak revenue potential of $2 billion and a key trial data disclosure expected by the end of 2026 [2] - Tyra Biosciences (TYRA.US), target price $32: Dabogratinib for bladder cancer and achondroplasia, with critical data expected next year [3] - Tango Therapeutics (TNGX.US), target price $14: Collaboration with Revolution Medicines for a pancreatic cancer treatment, with data expected in mid-2026 [3] - ORIC Pharmaceuticals (ORIC.US), target price $23: Two potential assets targeting prostate cancer and lung cancer, with key data expected next year [4] - Solid Biosciences (SLDB.US), target price $15: Focused on gene therapy for Duchenne muscular dystrophy, with critical meetings with the FDA planned for 2026 [4] Seven Undervalued Companies - The report also highlighted seven undervalued companies with significant catalysts: - Ultragenyx Pharmaceutical (RARE.US), target price $114: Expected key catalysts in 2026, including data for treatments for osteogenesis imperfecta and Angelman syndrome [5] - Beam Therapeutics (BEAM.US), target price $41: Updates on AATD therapy and SCD therapy expected in 2026, showcasing strong potential [5] - Aurinia Pharmaceuticals (AUPH.US), target price $21: Steady growth in lupus nephritis treatment, with new drug development paths expected to expand growth [6] - Kodiak Sciences (KOD.US), target price $39: Anticipated data from three pivotal trials in 2026, with significant potential for stock volatility [7] - Intellia Therapeutics (NTLA.US), target price $45: Key data for hereditary angioedema therapy expected in mid-2026, with sufficient cash reserves to support operations [7] - Compass Therapeutics (CMPX.US), target price $8: Data for cholangiocarcinoma therapy expected in early 2026, with a significant market opportunity [8] - KalVista Pharmaceuticals (KALV.US), target price $38: First oral treatment for hereditary angioedema expected to see rapid growth in 2026 [8] Five Potential Acquisition Targets - Jefferies identified five companies that may become acquisition targets in 2026 due to their unique assets or market positions: - Arrowhead Pharmaceuticals (ARWR.US): Strong RNAi product line for cardiovascular and metabolic diseases [9] - Celcuity (CELC.US): Unique efficacy of gedatolisib in breast cancer [9] - ORIC Pharmaceuticals: High-value prostate and lung cancer projects [9] - Travere Therapeutics (TVTX.US): Potential for significant market expansion in rare kidney diseases [9] - KalVista Pharmaceuticals: First-mover advantage in oral HAE treatment [9]

Core Insights - Aurinia Pharmaceuticals Inc. (AUPH) has experienced significant developments recently, including continued growth in its drug Lupkynis, the approval of a competitor's drug for lupus nephritis, and a request for information from the FDA [1] Company Developments - The earnings update from Aurinia Pharmaceuticals indicates ongoing growth in the sales of Lupkynis, which is a positive sign for the company's financial health [1] - A competitor's drug has received approval for lupus nephritis, which may impact Aurinia's market position and competitive landscape [1] - The FDA has requested additional information, which could influence the regulatory pathway for Aurinia's products [1]

Company Performance - Aurinia Pharmaceuticals (AUPH) has returned approximately 72.9% since the beginning of the calendar year, significantly outperforming the average return of 3.9% for Medical companies [4] - The Zacks Consensus Estimate for AUPH's full-year earnings has increased by 20.3% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Comparison - Aurinia Pharmaceuticals is part of the Medical - Drugs industry, which includes 146 individual stocks and currently ranks 84 in the Zacks Industry Rank. The average gain for stocks in this group is 5% year-to-date, highlighting AUPH's superior performance [5] - In contrast, Cardinal Health, which belongs to the Medical - Dental Supplies industry, has returned 67.4% year-to-date, while its industry ranks 99 and has moved up by 9.1% [6]

Core Viewpoint - Aurinia Pharmaceuticals (AUPH) is identified as a promising momentum stock, currently holding a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4][12] Momentum Style Score - The Zacks Momentum Style Score incorporates price changes and earnings estimate revisions to evaluate stocks [2][9] - AUPH's shares have increased by 19.8% over the past quarter and 72.41% over the last year, significantly outperforming the S&P 500, which moved 5.77% and 13.9% respectively [7] Price Performance - AUPH shares are up 2.81% over the past week, while the Zacks Medical - Drugs industry has increased by 4.43% during the same period [6] - The monthly price change for AUPH is 9.75%, compared to the industry's 1.34% performance [6] Trading Volume - AUPH's average 20-day trading volume is 1,763,778 shares, indicating a bullish sign as it reflects current interest in the stock [8] Earnings Outlook - Over the past two months, 4 earnings estimates for AUPH have moved higher, with no downward revisions, increasing the consensus estimate from $0.62 to $0.78 [10] - For the next fiscal year, 4 estimates have also moved upwards without any downward revisions [10]

Core Insights - Tang Capital Management has increased its stake in Aurinia Pharmaceuticals by acquiring 1.3 million shares, raising its total holding to 11.3 million shares valued at $125.2 million as of September 30 [2][4] - Aurinia's flagship product, LUPKYNIS, has shown significant growth, with net product sales increasing by 27% to $70.6 million, contributing to a quarterly revenue of $73.5 million, an 8% year-over-year increase [5][6] - The company has raised its full-year revenue guidance to between $275 million and $280 million, reflecting strong market uptake and operational efficiency improvements [6][7] Company Overview - Aurinia Pharmaceuticals is a commercial-stage biotechnology company focused on developing treatments for serious diseases, particularly autoimmune conditions, with a market capitalization of $2.1 billion [4] - The company reported a total revenue of $265.8 million and a net income of $77.8 million for the trailing twelve months (TTM) [4] - Aurinia's strategic collaborations, such as with Otsuka Pharmaceutical Co., enhance its competitive position in the biopharmaceutical sector [4] Financial Performance - Aurinia's third-quarter revenue of $73.5 million represents an 8% increase year-over-year, driven by strong sales of LUPKYNIS [5][6] - The company achieved a net income of $31.6 million in the third quarter, more than doubling the previous year's result [6] - Cash flows from operations increased significantly to $44.5 million, indicating improved operational efficiency [6]

Core Viewpoint - Aurinia Pharmaceuticals (AUPH) is currently outperforming its peers in the Medical sector, with a year-to-date return of 74.6% compared to the sector average of 6.3% [4]. Company Performance - Aurinia Pharmaceuticals is ranked 4 in the Zacks Sector Rank among 949 companies in the Medical group [2]. - The Zacks Rank for AUPH is 2 (Buy), indicating a positive earnings outlook [3]. - The Zacks Consensus Estimate for AUPH's full-year earnings has increased by 20.3% in the past quarter, reflecting stronger analyst sentiment [4]. Industry Context - AUPH is part of the Medical - Drugs industry, which consists of 144 companies and is currently ranked 75 in the Zacks Industry Rank [6]. - The average return for stocks in the Medical - Drugs industry this year is 6.1%, indicating that AUPH is performing significantly better [6]. - Another outperforming stock in the Medical sector is Cardinal Health (CAH), which has a year-to-date return of 77.1% and a Zacks Rank of 2 (Buy) [5].

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]