Please ensure Javascript is enabled for purposes of website accessibility

Why Aurinia Pharmaceuticals Stock Was Surging on Friday

By Cory Renauer – Aug 6, 2021 at 1:54PM

Key Points

  • In January, the FDA approved Aurinia's first product, Lupkynis, to treat lupus nephritis.
  • Independent new drug launches rarely live up to pre-launch expectations, so all eyes were on top-line sales of the drug.
  • Second-quarter Lupkynis sales of $6.6 million didn't disappoint.

Motley Fool Issues Rare “All In” Buy Alert

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were relieved to see significant sales from the company's first commercial-stage drug.

What happened

The stock of Aurinia Pharmaceuticals (AUPH) was surging today after the company's second-quarter earnings call. A positive outlook for Lupkynis, its recently launched drug for lupus nephritis (LN), encouraged investors to drive the stock 21.5% higher as of 1:08 p.m. EDT on Friday.

So what 

All eyes were on Lupkynis sales when Aurinia reported second-quarter results after U.S. markets closed on Thursday. The company didn't disappoint, with product revenue that reached $6.6 million.

Investor examining a stock chart.

Image source: Getty Images.

After first-quarter sales didn't even break $1 million, the uptick in the second quarter allowed Aurinia shareholders to breathe a sigh of relief. Despite today's gains, shares are still trading for a little less than their price over a year ago.

Now what

Systemic lupus erythematosus (SLE) is an autoimmune disorder that leads patients' immune systems to attack their own tissues. SLE affects around 300,000 Americans, and most go on to experience kidney damage, or lupus nephritis.

Lupkynis is the first oral treatment approved by the Food and Drug Administration to treat the underserved LN population, and this isn't the last surge in sales we're likely to see this year. Aurinia is predicting between $40 million and $50 million in Lupkynis sales for all of 2021. As the first available treatment for LN, Lupkynis could go on to generate blockbuster sales for Aurinia and send the biotech stock soaring much higher over the next few years.

Cory Renauer 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aurinia Pharmaceuticals Stock Quote
Aurinia Pharmaceuticals
$4.88 (%)

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.