Aurinia Pharmaceuticals (AUPH) Q2 2024 earnings summary

Executive summary

• Achieved $57.2 million in total net revenue for Q2 2024, up 38% year-over-year, and $107.5 million year-to-date, up 42% year-over-year, driven by increased LUPKYNIS sales and expanded market penetration.

• Net product revenue from LUPKYNIS and voclosporin reached $55 million in Q2, up 34% year-over-year.

• Positive free cash flow of $15.8 million in Q2, with $330.7 million in cash and investments at quarter-end.

• 22% growth in total patients on LUPKYNIS therapy year-over-year, with 2,336 patients on therapy as of June 30, 2024.

• Strategic review led to discontinuation of AUR300, 25% headcount reduction, and focus on LUPKYNIS and AUR200.

Financial highlights

• Q2 2024 net revenue was $57.2M, up from $41.5M in Q2 2023; six-month revenue was $107.5M, up from $75.9M year-over-year.

• Net income of $722,000 ($0.01 per share) in Q2 2024, compared to a net loss of $11.5 million ($0.08 per share) in Q2 2023.

• Gross margin declined to 84% in Q2 2024 from 96% in Q2 2023, impacted by Monoplant amortization and lower-margin sales.

• SG&A expenses decreased to $44.9 million in Q2 2024 from $47.1 million in Q2 2023; R&D expenses dropped to $4.1 million from $12.7 million.

• License, collaboration, and royalty revenue was $2.2 million in Q2, up from $394,000 in Q2 2023.

Outlook and guidance

• Full-year net product revenue guidance narrowed to $210–$220 million, up from prior $200–$220 million range.

• Expecting $50–$55 million in annual cost savings post-restructuring, with 75% recognized in 2024.

• Anticipate milestone payment of $10 million from Otsuka upon LUPKYNIS approval in Japan in H2 2024.

• First patients in AUR200 phase I SAD study expected in Q3 2024, with data in H1 2025.

• Sufficient financial resources to fund current plans, including LUPKYNIS commercialization and AUR200 development, for at least the next few years.