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Aurinia (AUPH) Soars 37.5%: Is Further Upside Left in the Stock?

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Aurinia Pharmaceuticals (AUPH - Free Report) shares rallied 37.5% in the last trading session to close at $5.94. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12% loss over the past four weeks.

Earlier this week, the company entered into a settlement agreement with Sun Pharmaceuticals, wherein both the companies agreed to file a joint motion to dismiss Inter Parties Review of Patent No. 10,286,036 related to Aurinia. The companies have settled the patent infringement claim against Sun’s Cequa product. This might have been driving the share price rally.

This biotechnology company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -8%. Revenues are expected to be $27.15 million, up 16% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Aurinia, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AUPH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Aurinia is part of the Zacks Medical - Drugs industry. ImmunoGen (IMGN - Free Report) , another stock in the same industry, closed the last trading session 3.8% lower at $4.77. IMGN has returned -8.7% in the past month.

ImmunoGen's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.28. Compared to the company's year-ago EPS, this represents a change of -64.7%. ImmunoGen currently boasts a Zacks Rank of #3 (Hold).

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