Aritinercept

ROCKVILLE, Maryland & EDMONTON, Alberta--(BUSINESS WIRE)--Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) today announced financial results for the three months ended March 31, 2026 and provided an update on recent business progress. Financial Results Total Revenue: For the three months ended March 31, 2026, total revenue was $77.7 million, up 24% from $62.5 million in the same period of 2025. Net Product Sales: For the three months ended March 31, 2026, net product sales of LUPKYNIS, the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis, were $73.6 million, up 23% from $60.0 million in the same period of 2025. License, Collaboration and Royalty Revenue: For the three months ended March 31, 2026, license, collaboration and royalty revenue from Aurinia’s collaboration partner, Otsuka, was $4.1 million, up 64% from $2.5 million in the same period of 2025. Net Product Sales: For the three months ended March 31, 2026, net product sales of LUPKYNIS, the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis, were $73.6 million, up 23% from $60.0 million in the same period of 2025. License, Collaboration and Royalty Revenue: For the three months ended March 31, 2026, license, collaboration and royalty revenue from Aurinia’s collaboration partner, Otsuka, was $4.1 million, up 64% from $2.5 million in the same period of 2025. Net Income: For the three months ended March 31, 2026, net income was $34.4 million, up 48% from $23.3 million in the same period of 2025. Diluted Earnings per Share: For the three months ended March 31, 2026, diluted earnings per share was $0.25, up 56% from $0.16 in the same period of 2025. Cash Flows from Operating Activities: For the three months ended March 31, 2026, cash flows from operating activities were $32.6 million, up 2408% from $1.3 million in the same period of 2025. Cash Position As of March 31, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $378.8 million, compared to $398.0 million at December 31, 2025. For the three months ended March 31, 2026, cash outflows from financing activities were $53.7 million, which included the repurchase of 2.5 million of the Company’s common shares for $36.2 million and tax withholding payments related to net settlements of equity awards of $14.6 million. 2026 Total Revenue and Net Product Sales Guidance Aurinia reiterates its guidance for 2026 total revenue of $315 million to $325 million, up 11% to 15% compared to 2025, and 2026 net product sales of $305 million to $315 million, up 12% to 16% compared to 2025. “Aurinia remains steadfast in its mission to become a leading company that benefits patients suffering from autoimmune diseases,” stated Kevin Tang, Chief Executive Officer. “LUPKYNIS is emerging as a standard-of-care treatment for lupus nephritis, and aritinercept, now in clinical development for three potential indications, has therapeutic potential across a wide range of autoimmune disorders.” About Aurinia Aurinia is a biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases with high unmet medical needs. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis. Aurinia is also developing aritinercept, a dual inhibitor of B cell-activating factor (BAFF) and a proliferation-inducing ligand (APRIL) for the potential treatment of autoimmune diseases. Forward-Looking Statements This press release contains forward-looking information within the meaning of applicable Canadian securities law and forward-looking statements within the meaning of applicable U.S. securities law. We caution investors that forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and involve substantial risks and uncertainties that could cause the actual outcomes to differ materially from what we currently expect. These risks and uncertainties include, but are not limited to, those associated with: LUPKYNIS net product sales, the timing of clinical study results and other risks and uncertainties identified in our filings with the U.S. Securities and Exchange Commission. Forward-looking statements in this press release apply only as of the date made, and we undertake no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Additional information related to Aurinia, including a detailed list of the risks and uncertainties affecting Aurinia and its business, can be found in Aurinia’s most recent Annual Report on Form 10-K and its other public available filings available by accessing the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedarplus.ca or the U.S. Securities and Exchange Commission’s Electronic Document Gathering and Retrieval System (EDGAR) website at www.sec.gov/edgar, and on Aurinia’s website at www.auriniapharma.com. AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, 2026 December 31, 2025 (Unaudited) ASSETS Current assets: Cash, cash equivalents and restricted cash $ 41,008 $ 80,213 Short-term investments 337,775 317,784 Accounts receivable, net 49,175 41,454 Inventory 46,410 45,690 Prepaid expenses and deposits 4,119 5,746 Other current assets 1,757 1,080 Total current assets 480,244 491,967 Deferred tax assets, net 166,917 176,194 Finance right-of-use lease assets 69,508 73,865 Intangible assets, net 3,590 3,761 Operating right-of-use lease assets 1,659 3,596 Property and equipment, net 1,986 2,111 Other noncurrent assets 93 93 Total assets $ 723,997 $ 751,587 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,661 $ 3,313 Accrued expenses 58,196 66,621 Finance lease liabilities, current portion 16,519 16,523 Deferred revenue 5,036 3,720 Operating lease liabilities, current portion 1,622 1,067 Other current liabilities 2,522 2,480 Total current liabilities 86,556 93,724 Finance lease liabilities, less current portion 48,181 52,322 Deferred revenue, less current portion 12,413 12,648 Deferred compensation and other noncurrent liabilities 6,903 6,662 Operating lease liabilities, less current portion 2,318 4,900 Total liabilities 156,371 170,256 Shareholders' equity Common shares — no par value, unlimited shares authorized, 130,771 and 132,323 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 1,086,650 1,120,035 Additional paid-in capital 96,869 111,263 Accumulated other comprehensive loss (880 ) (599 ) Accumulated deficit (615,013 ) (649,368 ) Total shareholders' equity 567,626 581,331 Total liabilities and shareholders' equity $ 723,997 $ 751,587 AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) Three Months Ended March 31, 2026 2025 Revenue Net product sales $ 73,563 $ 59,971 License, collaboration and royalty revenue 4,142 2,494 Total revenue 77,705 62,465 Operating expenses Cost of revenue 6,505 8,574 Selling, general and administrative 22,029 20,339 Research and development 7,470 5,743 Restructuring — 1,533 Other expense, net 279 4,429 Total operating expenses 36,283 40,618 Income from operations 41,422 21,847 Interest income 3,515 3,569 Interest expense (1,012 ) (1,067 ) Net income before income taxes 43,925 24,349 Income tax expense 9,570 1,005 Net income $ 34,355 $ 23,344 Earnings per share Basic $ 0.26 $ 0.17 Diluted $ 0.25 $ 0.16 Shares used in computing earnings per share Basic 132,375 138,917 Diluted 137,639 143,199 AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 34,355 $ 23,344 Adjustments to reconcile net income to cash flows from operating activities: Deferred income tax 9,277 — Share-based compensation (866 ) (3,409 ) Amortization and depreciation 4,816 4,856 Foreign exchange (gain) loss on revaluation of Monoplant finance lease liability (416 ) 1,812 Net amortization of premiums and discounts on investments (2,319 ) (2,656 ) Other, net 581 2,325 Net changes in operating assets and liabilities: Accounts receivable, net (7,721 ) (3,806 ) Inventory (720 ) (6,967 ) Prepaid expenses and other current assets 950 6,033 Accounts payable (652 ) (974 ) Accrued expenses and other liabilities (5,592 ) (23,405 ) Deferred revenue 1,081 4,342 Operating lease liabilities (214 ) (195 ) Cash flows from operating activities 32,560 1,300 Cash flows from investing activities: Proceeds from the sale and maturities of investments 109,000 123,035 Purchases of investments (127,041 ) (91,986 ) Purchases of property, equipment and intangible assets (39 ) (17 ) Cash flows from investing activities (18,080 ) 31,032 Cash flows from financing activities: Purchase of common shares under Share Repurchase Plan (36,165 ) (46,921 ) Payments of principal portion of Monoplant finance lease liability (3,653 ) (2,771 ) Proceeds from issuance of common shares for equity awards 713 9,288 Tax withholding payments related to net settlements of equity awards (14,580 ) (8,933 ) Cash flows from financing activities (53,685 ) (49,337 ) Net decrease in cash, cash equivalents and restricted cash (39,205 ) (17,005 ) Cash, cash equivalents and restricted cash, beginning of the period 80,213 83,433 Cash, cash equivalents and restricted cash, end of the period $ 41,008 $ 66,428