AUPH Stock Rallies 6% After-Hours — Here’s Why

• Under the deal, Teva agreed that two of Aurinia’s key U.S. patents, expiring in December 2037, are valid, enforceable, and would be infringed by its generic product.
• Teva may not launch its version in the United States before December 7, 2036.
• LUPKYNIS is Aurinia’s main commercial product, approved for treating adults with active lupus nephritis.

Shares of Aurinia Pharmaceuticals Inc (AUPH) jumped as much as 6% after-hours on Wednesday after the company announced a patent settlement that delays a potential generic version of its key drug until late 2036.

The stock gained 6% during regular trading and was trading 3% higher after-hours at the time of writing.

Settlement Details

Aurinia said it and its U.S. subsidiary reached an agreement with Teva Pharmaceuticals (TEVA) resolving patent infringement litigation tied to Teva’s application to sell a generic version of LUPKYNIS.  

Under the deal, Teva agreed that two of Aurinia’s key U.S. patents, expiring in December 2037, are valid, enforceable, and would be infringed by its generic product. Teva may not launch its version in the United States before December 7, 2036, unless certain limited contingencies occur earlier, Aurinia said. Any launch also requires FDA approval.  

By locking in exclusivity against a major challenger until December 2036, Aurinia extends the period during which it can sell LUPKYNIS without direct competition from Teva.

Why The Litigation Matters

LUPKYNIS is Aurinia’s main commercial product, approved for treating adults with active lupus nephritis, a serious kidney complication of lupus. Multiple companies filed applications in 2025 seeking to sell cheaper copies before the patents expire.  

Litigation against other generic makers—including Dr. Reddy’s, Hikma, Sandoz, Zydus, and others—continues in federal court in New Jersey.

Other Near-Term Catalysts And Recent Progress

Aurinia continues to post solid commercial growth while expanding its pipeline. In its second-quarter results reported earlier this month, the company delivered total revenue of $83.2 million, up 19% year-over-year, and LUPKYNIS net product sales of $79.4 million.

Net income rose 74% to $37.4 million, and cash and investments stood at $443.1 million after share repurchases. Management reiterated full-year 2026 guidance of $315–$325 million in total revenue and $305–$315 million in LUPKYNIS sales.

On the clinical side, Aurinia recently started the PRESERVE study to test LUPKYNIS in combination with other approved lupus drugs to determine whether a multi-drug approach can improve kidney outcomes. The company has also moved its next pipeline candidate, aritinercept, into clinical development across four autoimmune diseases, creating potential longer-term growth opportunities beyond LUPKYNIS.

How Did AUPH Retail Traders React?

On Stocktwits, retail sentiment around AUPH stock jumped from ‘neutral’ to ‘bullish’ over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

Stocktwits users cheered the settlement and now expect other litigations to also yield positive outcomes for Aurinia.

Another user noted that Aurinia is now looking “increasingly attractive as a buyout target.” The user further expects the company to be acquired at a price of up to $30 per share.

AUPH stock has gained 1% year-to-date. 

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