Aurinia Pharmaceuticals (AUPH) has disclosed a new risk, in the Corporate Activity and Growth category.
Aurinia Pharmaceuticals’ restructuring program, initiated on February 15, 2024, aims to halt the development of AUR200 and AUR300, leading to significant cost savings. However, this decision brings risks including a considerable workforce reduction by at least 25%, potentially disrupting operations and eroding employee morale. The estimated savings and costs are predicated on assumptions that may not hold, and the program’s unintended consequences could materially harm Aurinia’s operational and financial health. In particular, challenges in reallocating responsibilities and the possibility of requiring additional capital underscore the uncertainty surrounding the program’s success.
The average AUPH stock price target is $12.00, implying 99.34% upside potential.
To learn more about Aurinia Pharmaceuticals’ risk factors, click here.
