AUPH — Aurinia Pharmaceuticals Inc.

Aurinia Pharmaceuticals Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $73.5 million, an 8% increase from $67.8 million in Q3 2024. Excluding a $10 million milestone payment from 2024, revenue grew by 27%.
• Net Product Sales of LUPKYNIS: $70.6 million, up 27% from $55.5 million in Q3 2024.
• Net Income: $31.6 million, a 119% increase from $14.4 million in Q3 2024.
• Diluted Earnings Per Share: $0.23, up 130% from $0.10 in Q3 2024.
• Cash Flows from Operating Activities: $44.5 million, up 162% from $17 million in Q3 2024.
• Cash Position: $351.8 million as of September 30, 2025, compared to $358.5 million at year-end 2024.

2. Strategic Updates and Business Highlights

• LUPKYNIS Sales Growth: Continued momentum attributed to its inclusion in the American College of Rheumatology (ACR) treatment guidelines, leading to a second increase in sales guidance for 2025 to $265-$270 million.
• Clinical Developments: Positive Phase I results for aritinercept, a dual BAFF/APRIL inhibitor, with plans to advance into clinical studies for two autoimmune diseases by the end of 2025.
• Regulatory Matters: Ongoing litigation against Dr. George Tidmarsh regarding statements about voclosporin, with no further comments on the matter.

3. Forward Guidance and Outlook

• Increased Guidance: For total revenue, guidance raised from $260-$270 million to $275-$280 million for 2025. For net product sales, guidance raised from $250-$260 million to $265-$270 million.
• Market Confidence: Management expressed confidence in continued growth into Q4 2025 and beyond, driven by LUPKYNIS's strong performance and favorable clinical data.

4. Bad News, Challenges, or Points of Concern

• Regulatory Scrutiny: An FDA information request regarding LUPKYNIS raised questions, though management believes the data presented is favorable.
• Competitive Landscape: Concerns about Roche's recent approval of a competing product, Gazyva, and its potential impact on LUPKYNIS's market share.
• Market Adoption: The transition in physician treatment behaviors following new guidelines may take time, which could affect sales momentum.

5. Notable Q&A Insights

• Prescriber Trends: Management noted a focus on high-volume prescribers, particularly rheumatologists, and emphasized the positive impact of ACR guidelines on treatment practices.
• Persistence Rates: There is an upward trend in patient persistence on LUPKYNIS, attributed to positive clinical outcomes and safety data.
• Aritinercept Development: Plans to disclose more about the indications and trial designs for aritinercept in early 2026, with ongoing discussions about potential non-kidney indications.
• FDA Interaction: Management indicated that the FDA's information request is a routine part of the regulatory process and does not necessarily indicate concern over LUPKYNIS's efficacy.

Overall, Aurinia Pharmaceuticals reported strong financial growth driven by LUPKYNIS sales, while also navigating regulatory challenges and competitive pressures. The company remains optimistic about its future growth prospects and ongoing clinical developments.