SAN DIEGO—Kevin Tang, a director at Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH), recently acquired a significant number of the company's common shares, according to a filing with the Securities and Exchange Commission. Between December 5 and December 9, Tang purchased a total of 1.2 million shares for approximately $10.82 million. The shares were bought at prices ranging from $8.91 to $9.09. The biotech company, currently valued at $1.31 billion, has demonstrated strong momentum with revenue growth of 39% over the last twelve months.
These transactions were executed through Tang Capital Partners (WA:CPAP), LP, and Tang Capital Partners III, Inc., both of which are entities in which Tang holds significant interest. Following these acquisitions, Tang now holds a total of 8,429,500 shares indirectly. According to InvestingPro data, this insider buying aligns with management's aggressive share repurchase strategy, with several more key insights available to subscribers.
The purchases reflect Tang's ongoing commitment to Aurinia Pharmaceuticals, as he continues to increase his stake in the company. The stock is currently trading near its 52-week high of $9.74, with InvestingPro analysis indicating the shares are fairly valued based on their proprietary Fair Value model.
In other recent news, Aurinia Pharmaceuticals has reported a 24% increase in total net revenue for the third quarter of 2024, amounting to $67.8 million. The company's year-to-date revenue also rose by 34% to $175.3 million. This financial performance is further underscored by a net income of $14.4 million, marking a significant turnaround from the net loss reported in the same quarter the previous year.
RBC Capital Markets has responded to these recent developments by raising its price target for Aurinia Pharmaceuticals to $9.00 from the previous $8.00, while maintaining an Outperform rating on the stock. This revision follows the company's third-quarter product revenues for 2024, which exceeded expectations by approximately 2%.
In addition to these financial developments, Aurinia Pharmaceuticals is undergoing its second operational restructuring this year. This strategic move is expected to save more than $40 million in annual operating expenses, further enhancing operational efficiency. The company has also initiated a Phase I study for AUR200 and received Japanese regulatory approval for LUPKYNIS, its flagship product.
Aurinia Pharmaceuticals continues to maintain its 2024 net product revenue guidance of $210 million to $220 million. These recent developments underscore Aurinia Pharmaceuticals' commitment to growth and operational efficiency.
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