AUPH - Aurinia Pharmaceuticals: Some Red Flags To Consider From Q1 2022 Earnings

• Aurinia Pharmaceuticals won approval for Lupkynis - to treat Lupus Nephritis - in January 2021.
• The therapy was considered to have blockbuster (>$1bn per annum) sales potential, but earned only $21.6m in Q1'22.
• Aurinia management blamed Omicron but will need to show improvement across the rest of the year to hit the higher end of 2022 guidance for $115 -$135m.
• LN could become a more crowded space as more therapies come to market - Lupkynis' only current competition is GSK's Benlysta.
• AUPH has ~$450m cash, but it is loss-making and I wonder if a share price correction is due if there is no further M&A speculation.

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