Aurinia cuts workforce by 45% to prioritize lupus and autoimmune assets

Aurinia Pharmaceuticals, a Canadian biotech company, has announced a significant restructuring plan that includes reducing its workforce by 45%. This move is aimed at streamlining operations and is expected to save the company over $40 million in annual operating expenses. This decision comes after an earlier reduction of 25% in the workforce in the first quarter of 2024 and represents a major shift as the company seeks to focus on its primary product, Lupkynis (voclosporin), a treatment for lupus nephritis, and accelerate the development of AUR200, a preclinical asset for autoimmune diseases.

The company’s third-quarter results for 2024 revealed a 24% increase in revenue compared to the previous year, reaching $67.8 million, largely driven by sales of Lupkynis, which accounted for $55.5 million of the total revenue. CEO Peter Greenleaf stated in the accompanying report that the workforce reduction is intended to strengthen Aurinia’s financial position and provide greater flexibility for future business activities.

Aurinia is now concentrating on the continued growth of Lupkynis and advancing its only remaining pipeline asset, AUR200, towards clinical validation. AUR200, an immune modulator, was initially put on hold after a strategic review last year but was reintroduced in August 2024. The candidate is currently undergoing a Phase I single ascending dose study, although Aurinia has not disclosed the specific indications. The company expects to release data on safety, tolerability, pharmacokinetics, and biomarkers from this study in the first half of 2025.

The restructuring plan also comes in response to increasing dissatisfaction among investors. Earlier this year, Aurinia faced pressure from shareholders after an unsuccessful attempt to find a potential buyer, which led to changes in leadership. Despite the resignation of three board members under shareholder pressure, Greenleaf remained in his position, with the board citing “exceptional circumstances” in a press release issued in September 2024.

At the end of the third quarter of 2024, Aurinia reported having $348.7 million in cash, equivalents, and investments. The company has also reaffirmed its full-year 2024 net product revenue guidance, projecting between $210 million and $220 million.

Lupkynis, the first oral lupus therapy approved by the US Food and Drug Administration (FDA) in 2021, subsequently received approvals in the European Union and the United Kingdom in September and December 2022, respectively. However, it faces competition from GSK’s Benlysta (belimumab), which received FDA approval slightly earlier in December 2020 and was approved by the European Medicines Agency (EMA) in May 2021. While Benlysta is a subcutaneous treatment, it is expected to outperform Lupkynis in sales by 2030. According to GlobalData’s Pharma Intelligence Center, Lupkynis is projected to achieve $447 million in sales by 2030, whereas Benlysta is forecasted to generate $1.76 billion.