What happened
Shares of Aurinia Pharmaceuticals (AUPH 2.19%), a clinical-stage biopharmaceutical company focused on rare diseases, were up 10% as of 11:05 a.m. EDT on Tuesday after management issued a press release that contained upbeat clinical and financial news.
So what
Management wanted to get three main points across to investors today.
First, its last patient study visit has occurred in its phase 3 AURORA program. This trial is studying its lead compound, voclosporin, as a hopeful treatment for lupus nephritis. Efficacy and safety data from the trial are on track to be shared with investors before the end of the year.
Second, the company has sold 2.34 million shares of common stock using its at-the-market offerings for a weighted average price of $6.40 each. This capital infusion raised about $15 million and came at a considerably higher price than yesterday's closing price of $4.67.
Third, management announced that its AURORA II study, which is a continuation of its AURORA trial, is proceeding as planned.
Image source: Getty Images.
Traders are reacting favorably to the plentiful good news.
Now what
2019 should be an exciting year for Aurinia's investors. If the phase 3 data from the AURORA trial looks good, the company will file for approval soon after. Success would most likely cause the share price to shoot much higher.
However, it's still hard to gauge just how well voclosporin will perform in its phase 3 trial, which is a big reason investing in clinical-stage pharma companies is so difficult. It won't be long before we know more, so my plan is to watch with enthusiasm from the sidelines.
