Aurinia Pharmaceuticals (AUPH) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net revenue of $67.8 million, up 24% year-over-year, and net product revenue of $55.5 million, up 36%, driven by LUPKYNIS growth and a $10 million milestone from Japanese approval.

• Net income for Q3 2024 was $14.4 million, reversing a net loss of $13.4 million in Q3 2023; nine-month net income was $4.3 million compared to a $51.1 million loss year-over-year.

• Cash flow from operations was $17 million for Q3 2024; cash and investments totaled $348.7 million as of September 30, 2024.

• Announced major restructuring, including a 45% workforce reduction in Q4 and a prior 25% reduction in Q1, with expected annualized cash-based operating expense savings of over $40 million.

• Focused on LUPKYNIS growth and rapid development of pipeline asset AUR200, with Phase 1 study underway and data expected in H1 2025.

Financial highlights

• Q3 2024 net product revenue was $55.5 million, up from $40.8 million in Q3 2023; nine-month net product revenue was $158.6 million, up from $116.2 million year-over-year.

• License, collaboration, and royalty revenue for Q3 2024 was $12.3 million, including a $10 million milestone from Japanese approval.

• Gross margin for Q3 2024 was 91%, up from 88% in Q3 2023; nine-month gross margin was 87%.

• SG&A expenses for Q3 2024 were $42.4 million, down from $47.8 million in Q3 2023; R&D expenses dropped to $3 million from $13.6 million.

• Cash, cash equivalents, and investments totaled $348.7 million as of September 30, 2024; working capital was $361.9 million.

Outlook and guidance

• Reiterated 2024 net product revenue guidance of $210 million to $220 million.

• Expects a one-time Q4 2024 restructuring charge of $15–$19 million and post-restructuring annualized cash-based operating expense savings of over $40 million.

• Believes current cash position is sufficient to fund operations, commercial activities, and pipeline advancement for at least the next few years.

• AUR200 Phase 1 SAD study data expected in the first half of 2025.