Great news emerged today for Aurinia Pharmaceuticals (NASDAQ:AUPH) investors. The company shot up substantially after news emerged about a settlement between itself and Sun Pharmaceuticals in India. The settlement offered a lot of breathing room for Aurinia and opened a way forward for continued operation without a lot of legal hassles involved. At least for now.
The settlement essentially called for both sides to halt any further legal action against each other. Sun Pharmaceuticals previously pursued action against Aurinia over its drug Lupkynis, which is used to treat lupus nephritis. Meanwhile, Aurinia took aim at Sun Pharmaceuticals over its drug Cequa, used to treat dry eye disease. Now, both are pulling in their legal claws and fangs. The two agreed to dismiss an Inter Parties Review over one patented item, number 10,286,036.
The move not only allows Aurinia to get back to work on its product line but also allows for further development to take place without being burdened by legal matters. With treatments for M2 Macrophages as well as new formulations of Voclosporin on tap, among other things, that opens the way for Aurinia to offer a much brighter future to investors.
Investors are happy, based on the surge the stock saw today, but so are analysts. Currently, analyst consensus calls the stock a Strong Buy with an average target price of $11.88 per share. This implies 98% upside potential.
