VICTORIA, British Columbia – Aurinia Pharmaceuticals (NASDAQ: AUPH) (the “Company”) is pleased to announce that it will enter into a definitive agreement with a pharma behemoth. The leading pharmaceutical company is in talks with AUPH for an acquisition pegged at $35 per American Depositary Share (ADS) or plus.
On paper, the total consideration of the acquisition is estimated to come up to $4,485 billion in the form of $35 in cash ordinary shares or plus. The transaction has been said to be unanimously approved by the Board of Directors of both companies and is expected to close in the third quarter of 2021.
“This collaboration will help us pave the way to create many more solutions in the autoimmune space and will be able to increase our marketing process” said Peter Greenleaf, President and Chief Executive Officer of Aurinia Pharmaceuticals speaking about the said merger.
Founded in 2012, Aurinia Pharmaceuticals Inc specializes in principled drug development and commercialization in the field of autoimmune diseases. The Canadian company’s stocks are currently valued at $14.33 (as of 23 August 2021), and the values are projected to rise with the impending acquisition.
With a market cap of $2 billion, the Company packs a lot of potential for its original solutions in the field of autoimmune diseases. The merger would come as the perfect progression to the acquiring company that is known to cashing in on strong trends to make deals of economic relevance.
Various sources and market whispers indicated that multiple pharma companies were keen on exploring acquisition opportunities with AUPH. However, this market leader was finally the one that converted these interests through its proposal of a tuck-in acquisition.
Earlier this year, the acquiring company also made investments in the space of oncology. After having spent roughly $1.4 billion in milestone payments the pharma giant was exploring other investments in non-linear pharma fields. AUPH emerged as one of the safest buys on its list.
As per this proposal, the acquisition indicates a merger of the two companies. Even though the acquiring company is capable of deploying a windfall of cash, a tuck-in acquisition seems ideal for the current market. AUPH has presented itself as the perfect option for the acquiring company to leverage the company’s skills and knowledge.
The merger will also help AUPH bring its deep experience in actively pursuing a broader portfolio of innovative drugs for autoimmune diseases like Lupus and Nephritis to the table. A successful tuck-in acquisition can increase revenues and broaden the acquiring company’s capabilities and resources, which can effectively boost AUPH’s growth graph.
The Company launched its first product Lupkynis in January this year. The drug that was made to treat Lupus Nephritis clocked in revenues of $6.6 million in the second quarter superseding pre-launch expectations.
Recently the company also acquired novel pipeline assets targeting autoimmune and kidney-related diseases diversifying its portfolio of offering therapeutic solutions to people living with rare diseases.
Once the merger with the market leader goes through, AUPH is expected to bring promising new products to the market keeping up with its offerings in the space of autoimmune diseases.
About Aurinia
Aurinia Pharmaceuticals is a fully integrated biopharmaceutical company focused on delivering therapies to treat targeted patient populations that are impacted by serious diseases with a high unmet medical need. The Company has introduced LUPKYNIS™ (voclosporin), the first FDA-approved oral therapy dedicated for the treatment of adult patients with active lupus nephritis (LN). The Company’s head office is in Victoria, British Columbia, its U.S. commercial hub is in Rockville, Maryland, and the Company focuses its development efforts globally.
Statutory Statement
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including statements regarding the underwritten public offering, the amount and anticipated use of proceeds from the offering, those relating to Company’s product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statements that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management’s current beliefs and assumptions.
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Investor contact:
Glenn Schulman, PharmD, MPH
SVP, Corporate Communications & IR
glenn.schulman@aurinia-pharma.com
Media Contact
Company Name: Aurinia Pharmaceuticals Inc
Contact Person: Glenn Schulman
Email: Send Email
City: Victoria
State: British Colombia
Country: Canada
Website: https://www.auriniapharma.com/
