AUPH - Aurinia Pharmaceuticals 2023 Earnings Review: Calling 'Time' In Last Chance Saloon

2024-02-15 15:00:53 ET

Summary

• Aurinia Pharmaceuticals Inc. stock price dropped 25% after underwhelming Q4 and full-year 2023 results.
• Sales of Lupkynis, indicated for lupus nephritis and the company's only commercial product, have failed to meet expectations.
• Aurinia has initiated a strategic review, exploring alternatives including a potential sale, but has been unable to find a buyer.
• Lupkynis appears to be an effective drug, however its patents may expire from 2025, allowing generic drugs to enter market, undercut on price.
• In short, the outlook for Aurinia in 2025 does not look good. The company is guiding for $200m - $220m of Lupkynis revenues, but profits are elusive, and the company directionless, it seems.

Investment Overview

Aurinia Pharmaceuticals Inc.'s ( AUPH ) stock price has taken a ~25% haircut in trading so far today, as the Victoria, Canada-based kidney disease specialist drug developer reported an underwhelming set of Q4 and full-year 2023 results .

The company markets and sells a single product, Lupkynis, which became the first FDA-approved, oral therapy to treat lupus nephritis ("LN") in 2021. Lupkynis is described as follows in Aurinia's 2023 10K submission / annual report, released today:

LUPKYNIS is an orally administered CNI immunosuppressant that has been demonstrated to improve near and long-term outcomes in LN when used in combination with mycophenolate mofetil ("MMF") (although MMF is not currently approved as such) and steroids.

By inhibiting calcineurin, LUPKYNIS reduces cytokine activation and blocks interleukin IL-2 expression and T-cell mediated immune responses. LUPKYNIS also potentially stabilizes podocytes, which can protect against proteinuria.

For further details see: