Aurinia Pharmaceuticals (AUPH) Stock: Tremendous Upside Ahead

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Aurinia Pharmaceuticals Inc (NASDAQ: AUPH)

Aurinia Pharmaceuticals has had an incredible time in the market over the past couple of days, and for good reason. The company recently provided an update with regard to a clinical study, exciting investors and analysts alike. Most notably, FBR weighed in on the stock with some very positive news. Today, we’ll talk about the update, how the stock reacted to the news, and what we can expect to see from AUPH moving forward.

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AUPH Receives Positive Notes From FBR After Lupus Update

For some time now, Aurinia Pharmaceuticals has been working on a treatment for Lupus. At the moment, the company is working on going through the data surrounding a study known as AURALV. This study is a Phase IIb clinical trial looking into voclosporin as a treatment for patients with active lupus nephritis. The update from the study showed that the company met its primary endpoint, causing excitement among investors. However, investors aren’t the only people excited.

In fact, shortly after the data from the clinical trial was released, FBR Analyst Vernon Bernardino weighed in on AUPH in a very positive way. Not only did the analyst reiterate the Outperform rating on the stock with a strong price target of $9.00 (185% upside), he had the following positive comments to offer:

The trial achieved its primary endpoint (1EP) of statistically significant greater complete remission in patients treated with 23.7mg of voclosporin twice daily (BID). Updated results showed AURA met all of its pre-specified, 24-week secondary Eps (2EPs), including in patients treated with high dose (39.5 mg BID) of voclosporin. Importantly, the deaths observed in AURA, which were met by negative investor reaction, appear attributable to complications of the disease, not to voclosporin…

We think that, based on these Phase IIb results, AUPH (which plans to meet with the FDA in 4Q16 to discuss the data) may gain the agency’s endorsement to file a Biologics License Application (BLA) for voclosporin’s accelerated approval…”

How The Stock Reacted To The News

As investors, we know that the news moves the market. In this particular case, the news was overwhelmingly positive. After all, Aurinia Pharmaceuticals released overwhelmingly positive results, which could lead to its treatment making it to the market relatively quickly. So naturally, we’re seeing big gains in the value of the stock today. Currently (1:55), AUPH is trading at $3.56 per share after a gain of $0.32 per share (9.85%) thus far today.

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What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Aurinia Pharmaceuticals. While I never advise blindly taking the advice of any analyst, after double checking the data myself, I believe that Mr. Vernon Bernardino definitely hit the nail on the head here.

At the end of the day, based on the data that the company has released, it seems as though AUPH is going to make a quick run to the market with voclosporin. The truth is that with such overwhelmingly positive data, in my opinion, the FDA is likely to put the treatment on the fast track with accelerated approval. Even if this fast track doesn’t take place, the data is overwhelmingly positive, and I believe that AUPH will bring voclosporin to the market relatively soon, regardless of designation. All in all, things seem to be on the up and up, and the stock is likely to see gains ahead.

What Do You Think?

Where do you think AUPH is headed? Join the discussion at StockTwits, Twitter, Facebook, or Google+!

[Image Courtesy of Deviant Art]

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