Aurinia Pharmaceuticals Inc. (AUPH): history, ownership, mission, how it works & makes money

A Brief History of Aurinia Pharmaceuticals Inc.

Aurinia Pharmaceuticals Inc. is a biopharmaceutical company focused on developing therapies for autoimmune diseases. The company gained significant attention with the FDA approval of its first product, LUPKYNIS (voclosporin), in January 2021, marking a pivotal moment in its history. As of 2024, Aurinia continues to evolve, leveraging its successes and addressing challenges in the competitive biopharmaceutical landscape.

Financial Performance Overview

As of September 30, 2024, Aurinia reported a total net revenue of $67.8 million for the third quarter, compared to $54.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, total net revenue reached $175.3 million, up from $130.4 million year-over-year. This growth primarily stems from increased sales of LUPKYNIS, reflecting a broader market penetration, particularly in the lupus nephritis segment.

Research and Development

Research and Development (R&D) remains a crucial aspect of Aurinia's strategy. For the three months ending September 30, 2024, R&D expenses totaled $3.0 million, a significant decrease from $13.6 million in Q3 2023. For the nine months, R&D expenses were $12.7 million in 2024 compared to $39.4 million in 2023. This reduction is attributed to a strategic restructuring and the cessation of the AUR300 development program.

Operational Adjustments

In early 2024, Aurinia underwent a corporate restructuring that reduced its workforce by approximately 25%. This move aimed to streamline operations and enhance focus on LUPKYNIS commercialization. As of September 30, 2024, the company reported cash and cash equivalents totaling approximately $37.1 million, alongside investments amounting to $311.6 million, reflecting a robust liquidity position.

Share Repurchase Program

In February 2024, Aurinia's Board approved a share repurchase program of up to $150 million. By September 30, 2024, the company had repurchased approximately 3.4 million common shares for $18.6 million, indicating a commitment to enhancing shareholder value amidst market fluctuations.

Market Position and Future Developments

Aurinia's strategic focus on LUPKYNIS is underscored by a strong sales trajectory, with approximately 2,422 patients on therapy as of September 30, 2024, compared to 1,939 patients a year prior. The company anticipates continued growth in this segment, supported by a favorable average annualized net realizable revenue per patient estimated between $70,000 and $75,000.

Additionally, Aurinia is advancing the development of AUR200, a promising therapy targeting autoimmune diseases. The first participant was dosed in a Phase 1 study on September 5, 2024, with results expected in the first half of 2025.

As of September 30, 2024, Aurinia's operational adjustments, coupled with strategic investments in its pipeline, position the company for sustained growth in the biopharmaceutical sector, particularly within the autoimmune disease market.

A Who Owns Aurinia Pharmaceuticals Inc. (AUPH)

Major Shareholders

As of September 30, 2024, the ownership structure of Aurinia Pharmaceuticals Inc. (AUPH) includes a mix of institutional and retail investors. The following table summarizes the major shareholders and their ownership percentages:

Recent Shareholder Changes

In February 2024, Aurinia initiated a share repurchase program, allowing the company to buy back up to $150 million worth of its common shares. As of September 30, 2024, approximately 3.4 million shares had been repurchased for $18.6 million.

Shareholder Equity

As of September 30, 2024, the total shareholders' equity for Aurinia Pharmaceuticals Inc. is reported as follows:

Institutional Ownership Trends

Institutional ownership of Aurinia has seen fluctuations, with significant holdings from investment firms such as BlackRock and Vanguard. As of September 30, 2024, institutional investors collectively own approximately 55% of the company. This indicates a stable interest from larger investment entities, which can often signal confidence in the company's future prospects.

Stock Performance and Market Sentiment

The stock performance of Aurinia Pharmaceuticals Inc. has been influenced by various factors, including the success of its product LUPKYNIS. As of September 30, 2024, the stock price was approximately $5.00 per share, reflecting a market capitalization of around $715 million. The stock has shown resilience, with a year-to-date increase of approximately 20%.

Conclusion on Ownership Dynamics

Ownership dynamics at Aurinia Pharmaceuticals Inc. reveal a strong institutional presence, indicating a robust interest in the company's direction and performance. The strategic partnership with Otsuka enhances its growth potential, especially in the Asian markets, contributing to a positive outlook among investors.

Aurinia Pharmaceuticals Inc. (AUPH) Mission Statement

Company Overview

Aurinia Pharmaceuticals Inc. is a biopharmaceutical company specializing in therapies for autoimmune diseases. The company focuses on delivering innovative solutions for high unmet medical needs, particularly through its flagship product, LUPKYNIS® (voclosporin), which is FDA-approved for treating active lupus nephritis in adults.

Mission Statement

Aurinia's mission is to provide transformative therapies to patients with autoimmune diseases and improve their quality of life. The company is committed to advancing scientific innovation, fostering collaborations, and ensuring patient access to its therapies.

Financial Overview

As of September 30, 2024, Aurinia reported:

• Total net revenue of $67.8 million for the three months ended September 30, 2024, compared to $54.5 million for the same period in 2023.
• Net product revenue of $55.5 million, up from $40.8 million year-over-year.
• License, collaboration, and royalty revenues were $12.3 million for the three months ended September 30, 2024.
• Operating expenses totaled $56.0 million, down from $70.8 million in the prior year period.
• Net income for the three months ended September 30, 2024, was $14.4 million compared to a loss of $13.4 million in 2023.

Market Position and Strategy

Aurinia's strategy includes focusing on the commercialization of LUPKYNIS and expanding its market presence. The company aims to enhance shareholder value through strategic collaborations and by addressing the needs of patients suffering from autoimmune diseases.

Recent Developments

As of September 2024, Aurinia has undergone a corporate restructuring aimed at improving operational efficiency, including a workforce reduction of approximately 25%. The company is also advancing its pipeline asset, AUR200, which targets autoimmune diseases.

Research and Development Focus

The company allocates significant resources toward research and development to support its innovative therapies. R&D expenses for the three months ended September 30, 2024, were $3.0 million, a decrease from $13.6 million in the same period in 2023.

Conclusion

Aurinia Pharmaceuticals Inc. remains committed to its mission of delivering innovative treatments for autoimmune diseases, while actively improving its financial performance and operational efficiencies through strategic initiatives.

How Aurinia Pharmaceuticals Inc. (AUPH) Works

Company Overview

Aurinia Pharmaceuticals Inc. is a biopharmaceutical company that focuses on developing and commercializing therapies for autoimmune diseases. The company's primary product is LUPKYNIS (voclosporin), which is the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis (LN).

Financial Performance

For the third quarter of 2024, Aurinia reported total net revenue of $67.8 million, a significant increase from $54.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, total net revenue was $175.3 million compared to $130.4 million for the same period in 2023.

Cost Structure

The cost of sales for Q3 2024 was $6.0 million compared to $6.8 million in Q3 2023. For the nine months ended September 30, 2024, the cost of sales increased to $22.7 million from $8.8 million in the same period of 2023. Gross margin for Q3 2024 was approximately 91%, up from 88% in Q3 2023.

Operating Expenses

For the three months ended September 30, 2024, selling, general, and administrative (SG&A) expenses were $42.4 million, down from $47.8 million in Q3 2023. For the nine months, SG&A expenses totaled $135.0 million compared to $145.0 million in the previous year.

Research and Development Expenses

Research and development (R&D) expenses for Q3 2024 amounted to $3.0 million, sharply down from $13.6 million in Q3 2023. For the nine months, R&D expenses were $12.7 million compared to $39.4 million in the same timeframe last year.

Liquidity and Capital Resources

As of September 30, 2024, Aurinia had cash, cash equivalents, and restricted cash of approximately $37.1 million, along with investments totaling $311.6 million. This compares to $48.9 million in cash and $301.8 million in investments at December 31, 2023.

Net Income (Loss)

Aurinia reported a net income of $14.4 million for Q3 2024, compared to a net loss of $13.4 million for Q3 2023. For the nine months ended September 30, 2024, the net income was $4.3 million versus a loss of $51.1 million for the same period in 2023.

Stock Performance

The weighted average common shares outstanding were 143.1 million for Q3 2024, leading to a diluted net income per share of $0.10, as opposed to a diluted loss per share of $(0.09) in Q3 2023.

Strategic Partnerships

Aurinia has a collaboration agreement with Otsuka Pharmaceutical Co., Ltd., which includes a $10 million milestone payment received in Q3 2024 for the approval of LUPKYNIS in Japan. The agreement also incorporates tiered royalties ranging from 10% to 20% on net product sales by Otsuka.

Recent Developments

In February 2024, Aurinia announced a share repurchase program of up to $150 million, reflecting management's confidence in the company's growth prospects. Additionally, the company has undergone a strategic restructuring to enhance operational efficiency, aiming for annualized cash savings exceeding $40 million.

Market Position

Aurinia's LUPKYNIS has captured increased market share, with approximately 2,422 patients on therapy as of September 30, 2024, compared to 1,939 patients a year earlier. The company's 12-month persistency rate improved to 57% from 54% year-over-year.

How Aurinia Pharmaceuticals Inc. (AUPH) Makes Money

Revenue Streams

Aurinia Pharmaceuticals generates revenue primarily through the sale of its product LUPKYNIS (voclosporin), a medication approved for the treatment of lupus nephritis (LN). The company has two main revenue sources:

• Product Revenue from direct sales of LUPKYNIS.
• License, Collaboration, and Royalty Revenue from partnerships, notably with Otsuka Pharmaceutical.

Product Revenue

For the three months ended September 30, 2024, Aurinia reported a net product revenue of $55.5 million, up from $40.8 million in the same period in 2023. For the nine months ended September 30, 2024, net product revenue reached $158.6 million compared to $116.2 million in 2023. The increase in sales reflects greater market penetration and an increase in the number of patients using LUPKYNIS:

Collaboration Revenue

Aurinia also earns revenue through collaboration and licensing agreements. For the three months ended September 30, 2024, license, collaboration, and royalty revenues amounted to $12.3 million, while for the nine months, these revenues totaled $16.7 million. This includes milestone payments from Otsuka Pharmaceutical, such as a $10 million payment for the approval of LUPKYNIS in Japan:

Customer Distribution

The majority of Aurinia's revenues come from two main specialty pharmacies, which accounted for approximately 81% of total net revenues in Q3 2024 and 87% for the nine months ended September 30, 2024. The collaboration partnership with Otsuka contributed 16% of total net revenues in Q3 2024:

Cost Structure

Aurinia’s cost of sales for the three months ended September 30, 2024, was $6.0 million, compared to $6.8 million in the same period in 2023. The gross margin for Q3 2024 was approximately 91%, up from 88% in Q3 2023. The reduction in costs and increased efficiency contributed to this margin improvement:

Operating Expenses

For the three months ended September 30, 2024, selling, general and administrative (SG&A) expenses were $42.4 million, down from $47.8 million in the prior year. Research and development (R&D) expenses decreased significantly to $3.0 million from $13.6 million in Q3 2023:

Net Income

Aurinia reported a net income of $14.4 million for the three months ended September 30, 2024, compared to a net loss of $13.4 million in Q3 2023. For the nine months ended September 30, 2024, the net income was $4.3 million, a significant improvement over the $51.1 million loss in the prior year:

Liquidity Position

As of September 30, 2024, Aurinia had cash, cash equivalents, and restricted cash totaling approximately $37.1 million, alongside investments of $311.6 million. This represents an increase in liquidity compared to December 31, 2023, when these figures were $48.9 million and $301.8 million, respectively:

Future Outlook

Aurinia is focusing on the continued growth of LUPKYNIS and developing its pipeline asset AUR200. The company's strategic restructuring is expected to improve operational efficiency and enhance shareholder value.

Updated on 16 Nov 2024

Resources:

1. Aurinia Pharmaceuticals Inc. (AUPH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Aurinia Pharmaceuticals Inc. (AUPH)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Aurinia Pharmaceuticals Inc. (AUPH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.