Why Aurinia Pharmaceuticals' Stock Is Up Big Today

What happened

In response to receiving a favorable analyst rating, shares of Aurinia Pharmaceuticals (NASDAQ: AUPH), a clinical-stage biopharmaceutical company, rose 12% as of 3:55 p.m. EDT on Tuesday.

So what 

Investors can thank Justin Kim, an analyst at Oppenheimer, for today's double-digit jump. Kim initiated coverage on Aurinia Pharmaceuticals on Monday evening after the market closed and gave shares an "outperform" rating. A price target of $14 was also issued, which is considerably higher than the $5.80 closing share price on Monday.

Traders bid up shares in response to the bullish rating and sky-high price target. 

Businessman looking at data using a magnifying glass.

Image source: Getty Images.

Now what

Aurinia's phase 3 AURORA trial, which is testing the company's lead product voclosporin as a hopeful treatment for lupus nephritis, is fully enrolled, and management expects to share data with investors in late 2019. Aurinia also boasts two other phase 2 trials in its pipeline that promise to expand voclosporin into treating focal segmental glomerulosclerosis and dry eye syndromes. Success in any of these indications could turn voclosporin into a potential blockbuster drug and would enable Aurinia's share price to continue to soar.

It's always hard to handicap an individual drug's odds of success, but we should know much more about its chances when data from the AURORA trial is released. Interested pharma investors will just have to sit tight while we wait for more information. 

10 stocks we like better than Aurinia Pharmaceuticals
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurinia Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 1, 2019


Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More