• Total Revenue (Q4 2024): $59.9 million, up 33% from $45.1 million in Q4 2023.
• Total Revenue (Full Year 2024): $235.1 million, up 34% from $175.5 million in 2023.
• Net Product Sales of LUPKYNIS (Q4 2024): $57.6 million, up 36% from $42.3 million in Q4 2023.
• Net Product Sales of LUPKYNIS (Full Year 2024): $216.2 million, up 36% from $158.5 million in 2023.
• Cash Flow from Operations (Q4 2024): $30.1 million compared to $14.3 million in Q4 2023.
• Cash Flow from Operations (Full Year 2024): $44.4 million compared to cash flow used in operations of $33.5 million in 2023.
• Cash Equivalents, Restricted Cash, and Investments (End of 2024): $358.5 million.
• Gross Margin (Q4 2024): 91% compared to 88% in Q4 2023.
• Gross Margin (Full Year 2024): 88% compared to 92% in 2023.
• Total Operating Expenses (Q4 2024): $61.5 million compared to $74.8 million in Q4 2023.
• Total Operating Expenses (Full Year 2024): $239.8 million compared to $267.2 million in 2023.
• Net Income (Q4 2024): $1.4 million or $0.01 per share compared to a net loss of $26.9 million or $0.19 per share in Q4 2023.
• Net Income (Full Year 2024): $5.8 million or $0.04 per share compared to a net loss of $78 million or $0.54 per share in 2023.

• Warning! GuruFocus has detected 3 Warning Signs with ALT.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) reported a significant growth in total revenue, with a 33% increase in the fourth quarter of 2024 compared to the same period in 2023.
• Net product sales of LUPKYNIS increased by 36% in both the fourth quarter and full year of 2024, driven by further market penetration.
• The company generated positive cash flow from operations, improving from a cash flow deficit in 2023 to a positive cash flow of $44.4 million in 2024.
• Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) has a strong cash position with cash equivalents, restricted cash, and investments totaling $358.5 million as of December 31, 2024.
• The company is advancing its pipeline with the development of AUR200, a potentially best-in-class dual BAFF and APRIL inhibitor, with initial results expected in the second quarter of 2025.

Negative Points

• The cost of revenue increased significantly for the full year 2024, primarily due to the amortization of the finance rate of use lease asset.
• Gross margin decreased from 92% in 2023 to 88% in 2024, indicating a slight decline in profitability.
• Total operating expenses, although reduced, still amounted to $239.8 million for the year, reflecting ongoing high costs.
• The company ceased development of its AUR300 program, which may impact future growth opportunities.
• Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) faces potential competition and patent challenges, with generic filings expected, which could impact future market exclusivity for LUPKYNIS.

Q & A Highlights

Q: Can you provide more details on how you are maximizing the opportunity for LUPKYNIS, especially with the addition to the ACR guidelines? Also, what data can we expect from the AUR200 asset in Q2? A: Peter Greenleaf, CEO: We are focusing on high prescribing rheumatology offices and hospital segments with lupus centers. The ACR guidelines are crucial as they address underdiagnosis and undertreatment. For AUR200, we expect to disclose pharmacodynamics and pharmacokinetic data, which will help determine the dose for the MAD study.

Q: How are you projecting LUPKYNIS growth beyond 2025, and will you disclose the dose for the MAD portion of AUR200? A: Peter Greenleaf, CEO: We don't provide long-term guidance but rely on historical trends. For AUR200, we will decide on disclosures after reviewing the SAD data, which will inform the MAD study structure.

Q: Your guidance seems conservative given the Q4 run rate. What informs your commercial outlook for 2025? Also, can you discuss LUPKYNIS's exclusivity and potential generic competition? A: Peter Greenleaf, CEO: Our guidance is based on historical financial results. We have a robust patent portfolio for LUPKYNIS, and we intend to defend our intellectual property rights vigorously, with potential generic competition not expected until mid-2028.

Q: Why did you decide to stop reporting PSS for the final quarter of 2024, and how does AUR200's potency compare to other assets? A: Peter Greenleaf, CEO: We believe our historical financial results provide sufficient insight into our business health. Greg Keenan, CMO: AUR200 has shown lower KD and IC50 in preclinical models, suggesting higher potency and potentially less frequent dosing.

Q: How do the ACR treatment guidelines impact prescriber behavior and LUPKYNIS uptake? What are the timelines for AUR200's development? A: Peter Greenleaf, CEO: The guidelines emphasize early diagnosis and continuous treatment, which benefits LUPKYNIS. Over 50% of prescriptions come from rheumatologists. For AUR200, we need to complete the SAD study before outlining the MAD study timeline.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.