Daily Stock Pick: April 24th, 2023

The healthcare industry which is projected to expand by 19% – making it the second-fastest growing sector in 2023. 

Increasing demand for healthcare insurance, an aging population, plus new regulations are all helping drive this healthcare boom. 

Health and medical insurance alone is a $1.2 trillion industry and total national healthcare expenditure has already exceeded the $4 trillion-per-year mark

There’s a ton of money in the industry, which makes it an exciting opportunity for investors.

Today’s stock pick is a Buy-rated pharma that could be majorly undervalued. It just settled a patent dispute that was weighing on its stock, its price has more than doubled over the past 4 months – and one of its board members just made a big insider buy.

Aurinia Pharmaceuticals Inc. (AUPH)

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.

It has already introduced the first FDA-approved oral therapy (called Lupkynis) indicated for the treatment of adult patients with active lupus nephritis – an affliction suffered by almost a million Americans. It recently announced that this same therapy could soon receive a patent from the European Patent Office.

There are several positive catalysts for this stock. 

A major patent dispute over Lupkynis was favorably resolved earlier this year, setting off a major price recovery. Its stock price has been on an uptrend – increasing by 148% since its previous lows in late December 2022.

However, there’s a good case that this stock is still severely undervalued.

With the patent roadblock out of the way, Lupkynis has the potential to be the next blockbuster drug – generating over a billion dollars in annual sales. 

And considering Aurinia’s market cap is still only about $1.5 billion – even after the price recovery – there’s still plenty of reasons to pay attention to this stock.

Aurinia’s board members seem to agree. In March 2023, the Independent Chairman of the Board made a big purchase of Aurinia’s stock – the largest insider buy since March of 2022. How’s that for a vote of confidence?

To your wealth,
Felix @ Ace of Investing