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

Aurinia Pharmaceuticals Inc. shares rose as much as 6% after-hours on Wednesday, August 19, 2026, after the company announced a settlement with Teva Pharmaceuticals resolving patent litigation over Teva’s application to sell a generic version of LUPKYNIS. AUPH had gained 6% during regular trading and was up 3% after-hours at the time of publication. Under the agreement, Aurinia and its U.S. subsidiary established that two key U.S. patents, expiring in December 2037, are valid, enforceable and would be infringed by Teva’s generic product. Teva cannot launch in the United States before December 7, 2036, unless limited contingencies occur earlier, and any launch would require FDA approval. The settlement extends the period in which Aurinia can sell LUPKYNIS without direct competition from Teva. LUPKYNIS is Aurinia’s main commercial product and is approved for adults with active lupus nephritis, a serious kidney complication of lupus. Multiple companies filed applications in 2025 seeking cheaper copies before the patents expire. Litigation against Dr. Reddy’s, Hikma, Sandoz, Zydus and others continues in federal court in New Jersey, creating additional legal uncertainty as well as potential catalysts. Aurinia reported second-quarter total revenue of $83.2 million, up 19% year over year, including LUPKYNIS net product sales of $79.4 million. Net income increased 74% to $37.4 million, while cash and investments totaled $443.1 million after share repurchases. Management reaffirmed 2026 guidance of $315 million to $325 million in total revenue and $305 million to $315 million in LUPKYNIS sales. The company also began the PRESERVE study, testing LUPKYNIS with other approved lupus drugs to assess whether a combination approach improves kidney outcomes. Its next pipeline candidate, aritinercept, entered clinical development across four autoimmune diseases. On Stocktwits, AUPH sentiment shifted from neutral to bullish and message volume rose from normal to high. Users welcomed the settlement, anticipated favorable outcomes in other cases and identified Aurinia as a potential buyout target, with one user citing up to $30 per share. AUPH is up 1% year to date.