10-Q - Aurinia Pharmaceuticals Inc. (0001600620) (Filer)

Mon, May 12, 10:14 AM (32 days ago)

**Aurinia Pharmaceuticals Inc. (AUPH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue increased by 24% to $62.5 million, driven by a 25% rise in net product sales of LUPKYNIS to $60.0 million. License, collaboration, and royalty revenue also saw a 14% increase to $2.5 million. - **Profit Margins:** Gross margin remained strong at 86%, slightly up from 85% in Q1 2024. Operating expenses decreased by 36% to $40.6 million, leading to a significant improvement in operating income to $21.8 million, compared to a loss of $13.3 million in the prior year. - **Net Income:** Net income turned positive, reporting $23.3 million, a remarkable turnaround from a loss of $10.7 million in Q1 2024. - **Cash Flow:** Operating cash flow improved to a positive $1.3 million, compared to a negative $18.6 million in the same period last year. Excluding restructuring costs, operating cash flow was $12.4 million. - **Cash Position:** As of March 31, 2025, Aurinia had $312.9 million in cash, cash equivalents, restricted cash, and investments, down from $358.5 million at the end of 2024 due to share repurchases and restructuring costs. **Quarterly Performance Discussion:** - **Revenue Growth:** The increase in net product sales is attributed to higher LUPKYNIS cartons sold to specialty pharmacies, indicating further market penetration. - **Operating Expenses:** Significant reductions in selling, general, and administrative (SG&A) expenses by 57% to $20.3 million, and restructuring expenses by 77% to $1.5 million, contributed to the improved financial performance. - **Research and Development:** R&D expenses saw a modest increase of 3% to $5.7 million, reflecting ongoing development activities for AUR200 and post-approval obligations for LUPKYNIS. **Trends and Uncertainties:** - **Market Penetration:** Continued growth in LUPKYNIS sales suggests positive market acceptance and penetration. - **Restructuring Impact:** The company's strategic restructuring efforts in 2024 have led to cost savings and improved operational efficiency. - **Future Operations:** Aurinia plans to focus on LUPKYNIS growth and the development of AUR200, with expectations of increased R&D expenses in the coming periods. **Future Operations Impact:** - **Share Repurchases:** The company repurchased 5.8 million shares for $47.4 million in Q1 2025, reflecting confidence in its financial health and future prospects. - **Legal Proceedings:** Aurinia is involved in patent infringement lawsuits related to LUPKYNIS, which could impact future operations and financial performance. - **Economic Policies:** Changes in U.S. economic laws or policies, including potential tariffs or trade restrictions, could adversely affect Aurinia's business, particularly its imports and exports.