Aurinia Pharmaceuticals Inc. Q1 FY2025 earnings call

• Peter Greenleaf mentioned continued focus on commercial execution and operational efficiency, with strong growth in total revenue and LUPKYNIS net product sales in Q1 2025. • Following the update of American College of Rheumatology lupus nephritis treatment guidelines recommending LUPKYNIS for first-line therapy, the commercial organization is educating rheumatologists. • Reiterated total revenue guidance of $250 million to $260 million and net product sales guidance of $240 million to $250 million for 2025. • Mentioned initial results from Phase 1 study of AUR200, a dual BAFF/APRIL inhibitor, expected later this quarter. • Joe Miller discussed first quarter financial results including total revenue, cash flow, cost of revenue, gross margin, operating expenses, net income, and EPS. • Continued share repurchase program and highlighted operational efficiency and progress in clinical development of AUR200.

For the first quarter of 2025, total revenue was $62.5 million, up 24% from $50.3 million in the same period of 2024. Net product sales of LUPKYNIS, the first FDA-approved oral therapy for adult patients with active lupus nephritis, were $60 million, up 25% from $48.1 million in the same period of 2024. Cash flow generated from operations was $1.3 million for the three months ended March 31, 2025, compared to a negative $18.6 million in the same period of 2024. Excluding $11.1 million of cash payments made in connection with the November 2024 restructuring, cash flow generated from operations was $12.4 million. Cash, cash equivalents, restricted cash and investments were $312.9 million as of March 31, 2025, compared to $358.5 million on December 31, 2024. The company repurchased 5.8 million of its common shares for $47.4 million in the first quarter of 2025.

• Reiterated total revenue guidance for 2025 in the range of $250 million to $260 million. • Reiterated net product sales guidance for 2025 in the range of $240 million to $250 million.

• ANDA filers challenging the validity of the 2037 dosing protocol patent, with Aurinia having filed patent infringement lawsuits and intending to defend patents. • Tariff risks related to API from Switzerland, with minimal impact expected in the next several years. • Transfer pricing risks for a Canadian company doing business in the US. • Government pricing policy risks affecting the pharmaceutical and healthcare industry, with Aurinia's business split between private and government pay.

Q: On LUPKYNIS, talk about quarterly cadence, drivers of sales (new patient adds, restarts, hospital adds).

A: Peter mentioned historical quarter performance and that improvement in LUPKYNIS sales is from multiple factors including new patient adds, persistency, etc., and guided by historical data.

Q: On AUR200, near Phase 1 single-ascending dose update, talk about base case scenarios and regulatory pathway.

A: Peter said they'll report SAD data by end of June and will show data then, with more to come after seeing the data.

Q: On SG&A expense and future SG&A.

A: Joe said following restructuring, on track to achieve cash-based OpEx savings of ~$40 million, and SG&A had a small true-up related to stock-based compensation with nothing unusual otherwise.

Q: On Roche’s Gazyva and impact on LUPKYNIS adoption.

A: Peter and Greg Keenan discussed that more large pharma in the lupus market helps grow awareness, guidelines call for aggressive diagnosis and early treatment, and LUPKYNIS has strong evidence and timely benefit achieving goals.