Aurinia (NASDAQ:AUPH) Soars on Strong Q1 2024 Results and Promising Outlook

Published on September 24, 2024 | Ticker: AUPH

Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH), a fully integrated biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases, has reported impressive financial and operational results for the first quarter of 2024, showcasing the company's strong execution and growth potential.

Financials

In the first quarter of 2024, Aurinia achieved total net revenue of $50.3 million, representing a significant 46% year-over-year increase. This was driven primarily by a 40% increase in net product revenue, which reached $48.1 million. The company's sole marketed drug, LUPKYNIS (voclosporin), continues to demonstrate strong commercial performance, with the number of patients on therapy increasing by approximately 26% year-over-year to 2,178 as of March 31, 2024.

Aurinia's financial results for the full year 2023 also highlight the company's progress. Annual revenue reached $175.5 million, while the company reported a net loss of $78.0 million and negative operating and free cash flows of $33.5 million and $34.2 million, respectively. Despite these losses, the company's balance sheet remains strong, with $320.1 million in cash, cash equivalents, restricted cash, and investments as of March 31, 2024.

Business Overview

One of the key drivers of Aurinia's strong performance in the first quarter was the continued penetration of the lupus nephritis (LN) market. The company added 448 patient start forms (PSFs) and approximately 148 new patients who were either restarting LUPKYNIS or receiving it through the hospital pharmacy, representing a substantial year-over-year increase compared to 466 PSFs in the prior year period. Additionally, the company's overall patient adherence rates remained high at 87%, and persistency grew from approximately 51% of patients remaining on therapy at 12 months to 56%.

Label Update

Aurinia's recent label update for LUPKYNIS is another significant development. The updated label now includes long-term data from the AURORA 2 extension study, which showed that patients receiving LUPKYNIS achieved sustained complete renal response at every time point assessed throughout the 3 years, when compared to mycophenolate mofetil (MMF) and low-dose glucocorticoids steroids alone. This data further strengthens LUPKYNIS's position as a best-in-class treatment for LN.

Operational Efficiency

In addition to the strong commercial performance, Aurinia has also made significant progress in its operational efficiency. The company executed a corporate restructuring in the first quarter, reducing employee headcount by approximately 25%. This restructuring is expected to drive $50 million to $55 million in annual cost savings, with approximately 75% of those savings recognized in 2024. As a result, Aurinia expects to be cash flow positive, excluding share repurchases, in the second quarter of 2024, ahead of prior projections.

Geographic Expansion

Aurinia's geographic expansion efforts are also noteworthy. The company is working to expand access to LUPKYNIS in key markets, including Europe through its collaboration with Otsuka Pharmaceutical Co., Ltd. and Japan, where Otsuka filed a new drug application in November 2023. Upon approval in Japan, which is anticipated in the second half of 2024, Aurinia expects to receive a $10 million milestone payment and low double-digit royalties on net sales.

Pipeline

The company's pipeline also remains an area of focus, with the discontinuation of the AUR300 program and the exploration of alternative approaches for the AUR200 asset, a promising APRIL/BAFF inhibitor. While the company has not provided specific timelines for the development of AUR200, the IND has been approved by the FDA, and Aurinia is committed to advancing the program either internally or through an external partnership.

Outlook

Aurinia's strong first-quarter performance, coupled with its operational efficiency initiatives and promising pipeline, position the company well for continued growth and value creation. The company's laser-focus on driving LUPKYNIS revenues, improving patient access and adherence, and maintaining a disciplined approach to capital allocation are all key factors that should contribute to Aurinia's success in the years to come.

Conclusion

Overall, Aurinia's first-quarter results and outlook demonstrate the company's ability to execute on its strategic priorities and capitalize on the significant opportunity presented by the LN market. As the company continues to drive innovation and operational excellence, investors can look forward to Aurinia's continued progress in improving the lives of people living with autoimmune diseases.

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