Aurinia Pharmaceuticals Reports Quarterly Profit, Revenue Outlook Below Expectations

Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH), a biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases, reported its financial results for the three and twelve months ended December 31, 2024, and provided an update on recent corporate progress. While the company's quarterly profit and revenue outlook were below expectations, Aurinia's strong performance in LUPKYNIS sales and the potential of its pipeline product, AUR200, offer reasons for optimism.

Financial Performance

Aurinia reported a net income of $1.4 million for the three months ended December 31, 2024, compared to a loss of $26.9 million in the same period of 2023. Total revenue for the quarter was $59.9 million, up 33% from $45.1 million in the same period of 2023. Net product sales of LUPKYNIS, the company's first FDA-approved oral therapy for active lupus nephritis, were $57.6 million, up 36% from $42.3 million in the same period of 2023. However, license, collaboration, and royalty revenue decreased by 18% to $2.3 million, primarily due to a reduction in manufacturing services revenue and royalties from Aurinia's collaboration partner, Otsuka.

For the twelve months ended December 31, 2024, Aurinia reported a net income of $5.8 million, compared to a loss of $78.0 million in 2023. Total revenue for the year was $235.1 million, up 34% from $175.5 million in 2023. Net product sales were $216.2 million, up 36% from $158.5 million in 2023. License, collaboration, and royalty revenue increased by 11% to $18.9 million.

Cash Position and Guidance

As of December 31, 2024, Aurinia had cash, cash equivalents, restricted cash, and investments of $358.5 million, compared to $350.7 million at December 31, 2023. For the year ended December 31, 2024, the company repurchased 6.1 million of its common shares for $41.0 million. For 2025, Aurinia expects total revenue in the range of $250 million to $260 million and net product sales in the range of $240 million to $250 million.

Pipeline Product: AUR200

Aurinia initiated a Phase 1 study of AUR200, its potentially best-in-class dual inhibitor of B cell activating factor (BAFF) and a proliferation inducing ligand (APRIL), in September 2024. BAFF and APRIL are cytokines that stimulate B cell proliferation and activity and are upregulated in many autoimmune diseases. In preclinical studies, AUR200 potently inhibited B cell proliferation and production of IgA and IgM antibodies and exhibited pharmacokinetic and pharmacodynamic properties consistent with once-monthly dosing. Aurinia expects to report initial results from its Phase 1 study of AUR200 in the second quarter of 2025.

Challenges and Opportunities

While Aurinia's quarterly profit and revenue outlook were below expectations, the company's strong performance in LUPKYNIS sales and the potential of AUR200 offer reasons for optimism. Aurinia's focus on increasing LUPKYNIS's adoption among lupus nephritis patients and advancing AUR200's development positions the company well in the competitive landscape of autoimmune disease treatments. However, the company faces challenges in maintaining its cash position and managing its debt levels, as well as potential risks associated with the development of AUR200 and the uncertainty surrounding the Zantac litigation.



In conclusion, Aurinia Pharmaceuticals' quarterly profit and revenue outlook were below expectations, but the company's strong performance in LUPKYNIS sales and the potential of AUR200 offer reasons for optimism. Aurinia's focus on increasing LUPKYNIS's adoption and advancing AUR200's development positions the company well in the competitive landscape of autoimmune disease treatments. However, the company faces challenges in maintaining its cash position and managing its debt levels, as well as potential risks associated with the development of AUR200 and the uncertainty surrounding the Zantac litigation.