Aurinia Pharmaceuticals (AUPH) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net revenue of $67.8M and net income of $14.4M, reversing a prior year loss, driven by strong LUPKYNIS growth and a $10M milestone from Japanese approval.

• Announced major restructuring with a 45% workforce reduction and expected annualized cost savings of over $40M.

• Advanced clinical pipeline with first participant dosed in Phase 1 AUR200 study; initial results expected in H1 2025.

• Japanese approval of LUPKYNIS triggered a $10M milestone payment and sets up future royalty streams.

• Board changes included new Chair and Director appointments; class action lawsuit dismissed with prejudice.

Financial highlights

• Q3 2024 total net revenue: $67.8M, up 24% year-over-year; net product revenue: $55.5M, up 36% year-over-year.

• Q3 2024 net income: $14.4M ($0.10/share) vs. net loss of $13.4M ($0.09/share) in Q3 2023; nine-month net income: $4.3M ($0.03/share) vs. $51.1M loss.

• Cash, equivalents, and investments: $348.7M as of September 30, 2024; working capital: $361.9M.

• Gross margin was 91% in Q3 2024 (vs. 88% in Q3 2023); nine-month gross margin: 87%.

• SG&A expenses for Q3 2024: $42.4M, down from $47.8M in Q3 2023; R&D expenses: $3M, down from $13.6M.

Outlook and guidance

• Reiterated 2024 net product revenue guidance of $210M–$220M.

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

• Anticipates low double-digit royalties on LUPKYNIS sales in Japan and average annualized net realizable revenue per patient of $70,000–$75,000.

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

• AUR200 Phase 1 SAD study data expected in H1 2025.