Aurinia Pharma Surges Pre-Market After Director Kevin Tang Discloses $10M Stock Buy: Retail Confidence Spikes

Aurinia has been under the spotlight recently due to significant restructuring efforts.

Shares of Aurinia Pharmaceuticals Inc. surged over 4% pre-market Tuesday, putting the stock on track to reach its highest level in nearly a year. 

The biotech firm’s stock also emerged among the top five trending symbols on Stocktwits.

An SEC filing revealed that Kevin Tang, Aurinia’s Director and President of Tang Capital Management, purchased 1.2 million shares on Dec. 5 for approximately $10.82 million. 

This brings Tang’s indirect ownership of Aurinia shares to 8.43 million.

Retail sentiment shifted to ‘extremely bullish’ from ‘neutral’ on Stocktwits as trading activity picked up. 

One user commented that they liked “this Tang fella.” 

Another speculated on the strategic implications of the purchase, saying that the company might be taken private.

Aurinia has been under the spotlight recently due to significant restructuring efforts. 

Last month, the company announced a plan to cut nearly half its workforce, aiming to save over $40 million annually in operating expenses.

This came alongside changes to its board of directors, including Tang’s appointment, following CEO Peter Greenleaf’s conditional resignation as director.

In its third-quarter (Q3) earnings report, Aurinia posted earnings of $0.10 per share, significantly beating analysts’ estimates of $0.01. Revenue for the quarter reached $67.77 million, exceeding the expected $57.48 million.

Year-to-date, Aurinia’s stock has climbed over 4%, with momentum now building on insider confidence and operational changes.

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