Aurinia Pharmaceuticals Announces Q2 and H1 2024 Financial and Operational Results

Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) has released its financial results for the second quarter and the first half of 2024. The company recorded total net revenue of $57.2 million for the three months ending June 30, 2024, a notable increase from $41.5 million in the same period in 2023. For the first six months of 2024, total net revenue reached $107.5 million, up from $75.9 million for the corresponding period in 2023.

The net product revenue for Aurinia was $55.0 million in the second quarter of 2024, compared to $41.1 million in the same quarter of the previous year. This represents a growth of about 34%. Over the first half of 2024, net product revenue was $103.1 million, an increase from $75.4 million in the same period of 2023. This growth is primarily attributed to increased sales of LUPKYNIS, Aurinia's flagship product, and sales of semi-finished products to Otsuka Pharmaceutical Co., Ltd. for distribution in Europe and pending approval in Japan.

Peter Greenleaf, President and CEO of Aurinia, emphasized that the company's financial growth is due to its strong commercial execution and business fundamentals. The company is looking forward to innovative commercial initiatives aimed at rheumatologists, advancing its AUR200 pipeline asset, and the anticipated approval of LUPKYNIS in Japan. The company expects to receive a milestone payment of $10 million and low double-digit royalties on net sales upon the product's approval in Japan, which is anticipated in the latter half of the year.

Aurinia is also pushing forward with the development of AUR200, a new therapy for autoimmune diseases targeting BAFF and APRIL. The company plans to initiate the Phase 1 Single Ascending Dose (SAD) study of AUR200 in the third quarter of 2024, with data expected in the first half of 2025. This development program is anticipated to be funded with available cash flow, ensuring it does not impact previously announced operating expense targets post-restructuring.

For the fiscal year 2024, Aurinia has adjusted its net product revenue guidance range to $210 to $220 million, from the previously set range of $200 to $220 million. This forecast is grounded on assumptions regarding patient start forms, therapy restarts, hospital fills, conversion rates, and pricing.

In the second quarter of 2024, Aurinia saw a 22% increase in patients on LUPKYNIS therapy, totaling approximately 2,336 patients as of June 30, 2024, compared to 1,911 as of June 30, 2023. The company added 428 new patient start forms (PSFs) and around 127 new patients either restarting therapy or receiving it through hospital pharmacies.

The company's financial results for the three and six months ending June 30, 2024, reflect significant revenue growth, driven primarily by increased sales of LUPKYNIS. The U.S. market penetration is notable, with persistency rates increasing to 56% at 12 months from 54% in the previous year.

Aurinia's license, collaboration, and royalty revenue were $2.2 million for the three months ending June 30, 2024, up from $0.4 million in the same period of 2023. For the first half of 2024, this revenue was $4.4 million, an increase from $0.5 million in the same period of 2023, largely due to manufacturing services revenue from Otsuka.

The company's total cost of sales and operating expenses for the three and six months ending June 30, 2024, were $58.7 million and $122.3 million, respectively. These figures include a restructuring charge. The rise in costs is primarily due to increased sales of LUPKYNIS and semi-finished product sales to Otsuka.

Aurinia's gross margin was approximately 84% in the second quarter of 2024, compared to 96% in the same quarter of 2023. SG&A expenses, inclusive of share-based compensation, were $44.9 million and $92.6 million for the three and six months ending June 30, 2024, respectively, reflecting a decrease from the previous year.

Aurinia recorded a net income of $0.7 million for the three months ending June 30, 2024, compared to a net loss of $11.5 million in the same period of 2023. For the first half of 2024, the net loss was $10.0 million, an improvement from the $37.7 million net loss in the first half of 2023.

As of June 30, 2024, Aurinia had $330.7 million in cash, cash equivalents, restricted cash, and investments, a slight decrease from $350.7 million at the end of 2023. This decrease is attributed to investments in commercialization activities and post-approval commitments for LUPKYNIS, among other factors.

In conclusion, Aurinia Pharmaceuticals has demonstrated significant financial growth and strategic progress in the second quarter and first half of 2024. The company's continued focus on commercial execution and development of innovative therapies positions it well for future success.

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