When Can We Expect A Profit From Aurinia Pharmaceuticals Inc (NASDAQ:AUPH)?

Aurinia Pharmaceuticals Inc’s (NASDAQ:AUPH): Aurinia Pharmaceuticals Inc., a clinical stage biopharmaceutical company, engages in the development of a therapeutic drug to treat autoimmune diseases in Canada and internationally. The US$442.77M market-cap posted a loss in its most recent financial year of -US$23.29M and a latest trailing-twelve-month loss of -US$75.79M leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which AUPH will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for AUPH.

Check out our latest analysis for Aurinia Pharmaceuticals

AUPH is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2020, before turning a profit of US$28.99M in 2021. So, AUPH is predicted to breakeven approximately 3 years from now. In order to meet this breakeven date, I calculated the rate at which AUPH must grow year-on-year. It turns out an average annual growth rate of 59.28% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGM:AUPH Past Future Earnings Mar 3rd 18
NasdaqGM:AUPH Past Future Earnings Mar 3rd 18

I’m not going to go through company-specific developments for AUPH given that this is a high-level summary, but, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing I’d like to point out is that AUPH has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. AUPH currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of AUPH to cover in one brief article, but the key fundamentals for the company can all be found in one place – AUPH’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should look at:

  1. Valuation: What is AUPH worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether AUPH is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aurinia Pharmaceuticals’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.