Aurinia Pharmaceuticals hired a trio of executives in a move that suggests it's nowhere near a buyout — and AUPH stock plummeted Friday.
The company hired Volker Knappertz as its executive vice president of research and development, Scott Habig as its chief commercial officer, and DeDe Sheel as vice president of investor relations.
On today's stock market, AUPH stock toppled 9.4% to 10.49.
The hirings likely cooled investors' expectations that Aurinia could be looking for a buyout. In late 2021, reports suggested Bristol Myers Squibb and Novartis were at the negotiating table with Aurinia. Shares of Aurinia hit a record high in November, but have since fallen on the lack of takeover news.
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AUPH Stock: 3 Hires And 1 Departure
Knappertz comes to Aurinia from GW Pharmaceuticals. GW developed a treatment for seizures based on the cannabis plant before Jazz Pharmaceuticals acquired it last year. Knappertz will head up Aurinia's research and development.
Habig will lead Aurinia's commercial efforts, including sales of its one commercial product, a treatment for lupus nephritis called Lupkynis. This form of lupus involves the kidneys. About half of adults with lupus will develop lupus nephritis.
Sheel will manage relations with investors and analysts.
Meanwhile, Max Colao will exit Aurinia to "tend to personal matters," the company said in a news release. Colao formed Aurinia's commercial organization and helped launch Lupkynis last year.
Aurinia Shares Cool Off
In the first quarter, Lupkynis generated $21.6 million in sales, narrowly beating forecasts.
But takeover talk has largely cooled down since late last year. Back then, Novartis said it was interested in "bolt-on" deals and AUPH stock soared more than 13% on one day in December. Before that, reports said Bristol Myers could be negotiating a deal. Those reports pushed AUPH stock to a record high.
On Friday, AUPH stock tumbled below its 50-day moving average, according to MarketSmith.com. It had been sitting on a floor at that line for most of this month.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
