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.

• Net product revenue from LUPKYNIS and voclosporin was $55 million for Q2, up 34% year-over-year, and $103.1 million year-to-date, up 37%.

• Achieved $15.8 million in positive free cash flow in Q2, with $330.7 million in cash and investments as of June 30, 2024.

• Advanced AUR200 into the clinic, with first patients in phase I SAD study expected in Q3 2024 and data in H1 2025.

• Completed a strategic review, discontinued AUR300, and reduced headcount by 25% to focus on LUPKYNIS and AUR200.

Financial highlights

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

• Gross margin was 84% for Q2 2024, down from 96% in Q2 2023, impacted by Monoplant amortization and lower-margin Otsuka sales.

• SG&A expenses were $44.9 million for Q2, down from $47.1 million in Q2 2023, due to lower headcount.

• R&D expenses were $4.1 million for Q2, down from $12.7 million in Q2 2023, reflecting reduced headcount and program focus.

• Net income for Q2 was $0.7 million ($0.01/share) versus a net loss of $11.5 million ($0.08/share) in Q2 2023.

Outlook and guidance

• Full-year net product revenue guidance narrowed to $210–$220 million.

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

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

• Expect continued robust performance in H2 2024, with commercial execution and AUR200 clinical advancement.

• No further material restructuring expenses anticipated.