Aurinia Pharmaceuticals Inc (AUPH)

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From SA: Aurinia announces resignations of medical chief and senior research executive

Aurinia defended at H.C. Wainwright after key resignations
Oct. 21, 2022 3:30 PM ET Aurinia Pharmaceuticals Inc. (AUPH)

By: Dulan Lokuwithana, SA News Editor

Just a day after a 13% rise, Canadian biotech Aurinia Pharmaceuticals (NASDAQ:AUPH) is back in the red even as H.C. Wainwright moved to address questions surrounding the departures of the company's Chief Medical Officer and Executive Vice President of Research.

The resignation of medical chief Neil Solomons and research EVP Robert Huizinga was not due to any disagreement with the company management, the analyst Ed Arce remarked, citing AUPH's Chief Executive Peter Greenleaf.

"After speaking with CEO Peter Greenleaf, we are confident that their leaving does not involve any disagreements with the company or management," the analyst wrote, reiterating the Buy rating and $26 per share target on the stock.

Noting "their extraordinarily long development stewardship of voclosporin from discovery to approvals," Arce rules out concerns over the timing of the resignation, which came after the European approval for the lupus nephritis therapy.

Citing its "long-tenured professionals, as well as a number of recent hires over the last couple of years," the analyst also pointed to the company's bench strength.

On Thursday, Aurinia (AUPH) shares spiked as investors highlighted the purported takeover approach made by pharma giant Bristol Myers (BMY) exactly a year ago.