Aurinia Pharmaceuticals Q1 2024 Financial and Operational Results

Aurinia Pharmaceuticals Inc. reported its financial results for the first quarter ending March 31, 2024, demonstrating significant growth and strategic restructuring. The company achieved $50.3 million in total net revenue, marking a 46% increase from the same period in 2023. Net product revenue stood at $48.1 million, reflecting a 40% year-over-year growth in LUPKYNIS® (voclosporin) sales.

The company rapidly completed its corporate restructuring in the first quarter, reducing its workforce by approximately 25% and discontinuing the AUR300 research and development program. Aurinia is exploring alternative approaches for the AUR200 program. The restructuring is expected to yield annual cost savings of $50 to $55 million, with 75% of these savings recognized in 2024, excluding a one-time restructuring charge of approximately $7 million. Aurinia forecasts its total annualized operating expenses to be between $185 and $195 million, with cash-based operating expenses ranging from $155 to $165 million.

Peter Greenleaf, President and CEO of Aurinia, expressed satisfaction with the company's progress, noting that they are on track to achieve positive free cash flow in the second quarter of 2024, ahead of previous projections. Greenleaf highlighted recent accomplishments, including FDA approval of a label update for LUPKYNIS, incorporating long-term efficacy data from the AURORA Clinical Program. The company has also launched a new marketing campaign to educate rheumatologists about the urgency of treating lupus nephritis.

The updated FDA label for LUPKYNIS now includes long-term data showing sustained complete renal response over three years. The update reduces the frequency of kidney function assessments from monthly to quarterly after the first year of treatment. The safety profile of LUPKYNIS remains consistent with previous findings.

Aurinia also launched the "Know the Signs" campaign to raise awareness among rheumatologists about the severity of lupus nephritis and the importance of prioritizing kidney health in individuals with systemic lupus erythematosus (SLE).

In its operational execution, Aurinia released its 2023 Environmental, Social, and Governance (ESG) report, detailing efforts in areas such as energy and emissions, barriers to care, diversity, equity, and inclusion practices, employee engagement, and risk management.

As of March 31, 2024, there were approximately 2,178 patients on LUPKYNIS therapy, compared to 1,731 patients as of March 31, 2023. The first quarter saw 448 new patient start forms and 148 new patients either restarting LUPKYNIS or receiving it through a hospital pharmacy. From January 1, 2024, to April 28, 2024, the company added 582 patient start forms and 170 new patients from restarts and the hospital channel. Conversion rates remained high, with around 85% of patient start forms converting to therapy. The adherence rate was approximately 87%, and the persistency rate improved to 56% at 12 months, 50% at 15 months, and 46% at 18 months.

Financially, Aurinia recorded a net loss of $10.7 million or $(0.07) per share for the first quarter of 2024, compared to a net loss of $26.2 million or $(0.18) per share for the same period in 2023. The company had cash, cash equivalents, restricted cash, and investments totaling $320.1 million as of March 31, 2024, down from $350.7 million at the end of 2023. The decrease was primarily due to investments in commercialization activities, post-approval commitments for LUPKYNIS, monoplant payments, share repurchases, and restructuring-related payments, offset by increased cash receipts from sales and payments from Otsuka.

Aurinia's financial results indicate robust growth and effective cost management, positioning the company for continued success in the treatment of autoimmune diseases.