– $6.6 million in net revenue for the second
quarter 2021 (624% increase from first quarter 2021) – – 415
patient start forms (PSFs) received for LUPKYNIS™ during the second
quarter (over a 60% increase from the first quarter 2021) and over
800 PSFs received year-to-date – – Continued ex-U.S. execution
highlighted by the submission of a voclosporin MAA to the EMA by
Otsuka – – Cash and cash equivalents, and investments of $323.7
million at June 30, 2021 – – Conference call to be hosted today at
4:30 p.m. EDT –
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) (“Aurinia” or the
“Company”) today issued its financial results for the second
quarter ended June 30, 2021. Amounts, unless specified otherwise,
are expressed in U.S. dollars.
“Aurinia continues to make progress toward transforming the
treatment of lupus nephritis (LN) by improving access to treatment
and providing disease education and care for the long underserved
LN patient community,” said Peter Greenleaf, President and Chief
Executive Officer of Aurinia. “Our second quarter results
demonstrate our momentum as COVID-related restrictions are loosened
in parts of the United States with a significant increase in both
revenue and patient start forms. We are confident that with this
year-to-date performance and a strong balance sheet, that we are
well-poised for growth as we continue our work to expand the
treatment of LN and seek new opportunities that could address the
needs of patients with serious autoimmune disorders.”
Mr. Greenleaf further stated, “As we continue to expand patient
access to LUPKYNIS across the United States, we anticipate that
annual net revenue for LUPKYNIS will be in the range of $40 to $50
million for 2021, setting Aurinia up for a very strong 2022 as we
recognize the benefit of patients continuing on therapy and
hopefully achieving reductions in their proteinuria.”
Recent Highlights
Second Quarter 2021 U.S. Commercial Activities
- 415 PSFs during the second quarter with over 800 PSFs received
year-to-date;
- As of June 30, 2021, a total of 45 LUPKYNIS-specific policies
had been published by insurers representing approximately 110
million covered lives in the U.S.; and
- Converted over 50% of PSFs to patients on therapy by the end of
the second quarter.
Recent Operational Developments
- On May 10, 2021, The Lancet, an international, peer-reviewed
medical journal, published the results of the Company’s Phase 3
AURORA-1 study evaluating LUPKYNIS (voclosporin) in adults with
LN.
- On May 20, 2021, the Company announced that the interim
analysis of the AURORA-2 continuation study showed that subjects in
the LUPKYNIS treatment arm sustained meaningful reductions in
proteinuria, with no change in mean estimated glomerular filtration
rate (eGFR) at 104 weeks of treatment.
- Effective June 14, 2021, the Company appointed Dr. Brinda
Balakrishnan, M.D., Ph.D., to the Company’s Board of Directors. Dr.
Balakrishnan is Group Vice President, Corporate and Business
Development of BioMarin Pharmaceutical Inc.
- On June 25, 2021, Aurinia’s licensing partner, Otsuka
Pharmaceutical Co., Ltd., filed an initial marketing authorization
application (MAA) with the European Medicines Agency (EMA) seeking
approval for the use of voclosporin for the treatment of adult
patients with active LN in the European Union, as well as Norway,
Iceland and Liechtenstein. Upon approval the Company would be
eligible for up to an additional $30 million in approval related
milestones, low double-digit royalties on sales, and additional
revenues for the supply of product to Otsuka under a cost-plus
arrangement.
Upcoming Milestones
- Aurinia anticipates reporting top-line results from the ongoing
AURORA-2 two-year continuation study of voclosporin for the
treatment of LN by the end of 2021.
Financial Liquidity at June 30, 2021
As of June 30, 2021, Aurinia had cash and cash equivalents and
investments of $323.7 million compared to $422.7 million at
December 31, 2020. The decrease was primarily related to the
commercial infrastructure spend to support the launch of LUPKYNIS,
payments for inventory and an upfront payment made as part of a
collaborative agreement with Lonza to build a dedicated
manufacturing capability (or monoplant).
Net cash used in operating activities was $91.5 million for the
six months ended June 30, 2021 compared to $44.6 million for the
six months ended June 30, 2020. The increase was primarily due to
the commercial infrastructure spend to support the launch of
LUPKYNIS, payments for inventory and a one-time payment to a
related party upon achievement of specific milestones. In the prior
year, the Company was still in the development phase of LUPKYNIS
and as a result, did not incur any material related selling
expenses.
The Company believes that it has sufficient financial resources
to fund its current plans, which include funding commercial
activities, including FDA related post approval commitments,
manufacturing and packaging of commercial drug supply, conducting
planned research and development (R&D) programs, and operating
activities into at least 2023.
Financial Results for the Quarter Ended June 30, 2021
For the quarter ended June 30, 2021, Aurinia recorded a net loss
of $47.0 million or $0.37 net loss per common share, as compared to
a net loss of $26.5 million or $0.24 net loss per common share for
the quarter ended June 30, 2020. For the six months ended June 30,
2021, Aurinia recorded a net loss of $97.4 million or $0.76 net
loss per common share as compared to a net loss of $52.5 million or
$0.47 net loss per common share.
Total revenue was $6.6 million and $29 thousand for the quarters
ended June 30, 2021 and June 30, 2020, respectively. Total revenue
was $7.5 million and $59 thousand for the six months ended June 30,
2021 and June 30, 2020, respectively. The increase for both periods
was primarily the result of the commercial sales of LUPKYNIS
following FDA approval in January 2021.
Cost of sales were $308 thousand and nil for the quarters ended
June 30, 2021 and June 30, 2020, respectively. Cost of sales were
$356 thousand and nil for the six months ended June 30, 2021 and
June 30, 2020, respectively. The increase for both periods was
primarily the result of commercial sales of LUPKYNIS. Gross margin
for the three and six months ended June 30, 2021 was approximately
95%.
Selling, general and administrative (SG&A) expenses were
$43.8 million and $15.4 million for the quarters ended June 30,
2021 and June 30, 2020, respectively. For the six months ended June
30, 2021 and June 30, 2020, SG&A expenses were $83.1 million
and $26.5 million, respectively. The increase for both periods was
primarily due to the expansion of the commercial infrastructure,
administrative functions and patient assistance programs to support
the launch of LUPKYNIS. SG&A share-based compensation expense
for the three and six months ended June 30, 2021 was $6.5 million
and $13.2 million, respectively.
R&D expenses were $10.1 million and $11.1 million for the
quarters ended June 30, 2021 and June 30, 2020, respectively. For
the six months ended June 30, 2021 and June 30, 2020, R&D
expenses were $19.9 million and $24.9 million, respectively. The
decrease for both periods was primarily due to lower contract
research organization expenses and other third-party clinical trial
expenses following the approval of LUPKYNIS, including a reduction
in new drug application preparation costs, capitalization of supply
costs following approval, and termination of the dry eye trial
during the fourth quarter of 2020. R&D share-based compensation
expense for the three and six months ended June 30, 2021 was $1.1
million and $2.2 million, respectively.
This press release is intended to be read in conjunction with
the Company’s unaudited condensed consolidated financial statements
and Management's Discussion and Analysis for the quarter ended June
30, 2021 in the Company’s Quarterly Report on Form 10-Q, which is
accessible on Aurinia's website at www.auriniapharma.com, on SEDAR
at www.sedar.com or on EDGAR at www.sec.gov/edgar.
Conference Call Details
Aurinia will host a conference call and webcast to discuss the
quarter ended June 30, 2021 financial results today, Thursday,
August 5, 2021 at 4:30 p.m. EDT. The audio webcast can be accessed
under "News/Events” through the “Investors” section of the Aurinia
corporate website at www.auriniapharma.com. In order to participate
in the conference call, please dial +1-877-407-9170 (Toll-free U.S.
& Canada). An audio webcast can be accessed under "News/Events”
through the “Investors” section of the Aurinia corporate website at
www.auriniapharma.com. A replay of the webcast will be available on
Aurinia’s website.
About Lupus Nephritis
LN is a serious progression of systemic lupus erythematosus
(SLE), a chronic and complex autoimmune disease. About
200,000-300,000 people live with SLE in the U.S. and approximately
one out of three of these individuals have already developed LN at
the time of SLE diagnosis. If poorly controlled, LN can lead to
permanent and irreversible tissue damage within the kidney,
resulting in kidney failure. Black and Asian individuals with SLE
are four times more likely to develop LN and individuals with
Hispanic ancestry are approximately twice as likely to develop the
disease when compared with Caucasian individuals. Black and
Hispanic individuals with SLE also tend to develop LN earlier and
have poorer outcomes when compared to Caucasian individuals.
About Aurinia
Aurinia Pharmaceuticals is a fully integrated biopharmaceutical
company focused on delivering therapies to treat targeted patient
populations that are impacted by serious diseases with a high unmet
medical need. The Company has introduced LUPKYNIS (voclosporin),
the first FDA-approved oral therapy dedicated for the treatment of
adult patients with active LN. The Company’s head office is in
Victoria, British Columbia, its U.S. commercial hub is in
Rockville, Maryland, and the Company focuses its development
efforts globally.
Forward-Looking Statements
Certain statements made in this press release may constitute
forward-looking information within the meaning of applicable
Canadian securities law and forward-looking statements within the
meaning of applicable United States securities law. These
forward-looking statements or information include but are not
limited to statements or information with respect to: Aurinia’s
estimates as to annual net revenue in the range of $40-$50 million
in 2021; Aurinia’s estimates as to the number of patients with SLE
in the U.S. and the proportion of those persons who will develop
LN; Aurinia being confident that it is well-poised for growth;
Aurinia’s belief that it has sufficient financial resources to fund
its current plans until 2023; and the planned timing for reporting
top-line results from the ongoing AURORA-2 continuation study. It
is possible that such results or conclusions may change. Words such
as “anticipate”, “will”, “believe”, “estimate”, “expect”, “intend”,
“target”, “plan”, “goals”, “objectives”, “may” and other similar
words and expressions, identify forward-looking statements. We have
made numerous assumptions about the forward-looking statements and
information contained herein, including among other things,
assumptions about: the accuracy of reported data from third party
studies and reports; the number, and timing of receipt, of PSFs and
their rate of conversion into patients on therapy; that Aurinia’s
intellectual property rights are valid and do not infringe the
intellectual property rights of third parties; Aurinia’s
assumptions relating to the capital required to fund operations
into 2023; the assumption that Aurinia’s current good relationships
with its suppliers, service providers and other third parties will
be maintained; assumptions relating to the burn rate of Aurinia’s
cash for operations; the relationship between COVID vaccinations
and patient treatment; and that Aurinia’s third party service
providers will comply with their contractual obligations. Even
though the management of Aurinia believes that the assumptions
made, and the expectations represented by such statements or
information are reasonable, there can be no assurance that the
forward-looking information will prove to be accurate.
Forward-looking information by their nature are based on
assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance, or
achievements of Aurinia to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking information. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
in forward-looking statements or information. Such risks,
uncertainties and other factors include, among others, the
following: Aurinia’s actual future financial and operational
results may differ from its expectations; difficulties Aurinia may
experience in completing the commercialization of voclosporin; the
market for the LN business may not be as estimated; Aurinia may
have to pay unanticipated expenses; Aurinia may not be able to
obtain sufficient supply to meet commercial demand for voclosporin
in a timely fashion; unknown impact and difficulties imposed by the
COVID-19 pandemic on Aurinia’s business operations including
nonclinical, clinical, regulatory and commercial activities; the
results from Aurinia’s clinical studies and from third party
studies and reports may not be accurate; Aurinia’s third party
service providers may not, or may not be able to, comply with their
obligations under their agreements with Aurinia; and Aurinia’s
assets or business activities may be subject to disputes that may
result in litigation or other legal claims. Although Aurinia has
attempted to identify factors that would cause actual actions,
events, or results to differ materially from those described in
forward-looking statements and information, there may be other
factors that cause actual results, performances, achievements, or
events to not be as anticipated, estimated or intended. Also, many
of the factors are beyond Aurinia’s control. There can be no
assurance that forward-looking statements or information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
you should not place undue reliance on forward-looking statements
or information.
All forward-looking information contained in this press release
is qualified by this cautionary statement. 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 available by
accessing the Canadian Securities Administrators’ System for
Electronic Document Analysis and Retrieval (SEDAR) website at
www.sedar.com or the U.S. Securities and Exchange Commission’s
Electronic Document Gathering and Retrieval System (EDGAR) website
at www.sec.gov/edgar, or on Aurinia’s website at
www.auriniapharma.com.
AURINIA PHARMACEUTICALS INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
June 30, 2021
December 31, 2020
(unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
121,561
$
272,350
Short-term investments
197,176
125,979
Accounts receivable, net
4,418
—
Inventories, net
17,376
13,927
Prepaid expenses and other current
assets
9,158
7,171
Total current assets
349,689
419,427
Non-current assets
Long-term investments
5,004
24,380
Other non-current assets
11,856
247
Property and equipment, net
4,813
4,786
Acquired intellectual property and other
intangible assets, net
9,291
9,332
Right-of-use assets
5,615
5,489
Total assets
386,268
463,661
LIABILITIES
Current liabilities
Accounts payable and accrued
liabilities
25,831
24,797
Other current liabilities (of which $2,000
and $6,000, due to related party in 2021 and 2020,
respectively)
2,372
6,412
Operating lease liabilities
1,112
788
Total current liabilities
29,315
31,997
Non-current liabilities
Other non-current liabilities
16,872
16,295
Operating lease liabilities
7,824
7,619
Total liabilities
54,011
55,911
SHAREHOLDER’S EQUITY
Common shares - no par value, unlimited
shares authorized, 128,396 and 126,725 shares issued and
outstanding as at June 30, 2021 and December 31, 2020,
respectively
954,572
944,328
Additional paid-in capital
51,022
39,383
Accumulated other comprehensive loss
(792
)
(805
)
Accumulated deficit
(672,545
)
(575,156
)
Total shareholder’s equity
332,257
407,750
Total liabilities and shareholders’
equity
$
386,268
$
463,661
AURINIA PHARMACEUTICALS INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
(unaudited)
(unaudited)
Revenue
Product revenue, net
$
6,591
$
—
$
7,475
$
—
License revenue
29
29
59
59
Total revenue
6,620
29
7,534
59
Operating expenses:
Cost of sales
308
—
356
—
Selling, general and administrative
43,786
15,449
83,068
26,502
Research and development
10,091
11,076
19,924
24,911
Amortization of intangible assets
536
300
1,059
586
Other (income) expense, net
(967
)
67
804
1,983
Total cost and operating expenses
53,754
26,892
105,211
53,982
Loss from operations
(47,134
)
(26,863
)
(97,677
)
(53,923
)
Interest income
142
321
314
1,211
Net loss before income taxes
(46,992
)
(26,542
)
(97,363
)
(52,712
)
Income tax expense (benefit)
18
2
26
(236
)
Net loss
$
(47,010
)
$
(26,544
)
$
(97,389
)
$
(52,476
)
Basic and diluted loss per share
$
(0.37
)
$
(0.24
)
$
(0.76
)
$
(0.47
)
Weighted-average common shares outstanding
used in computation of basic and diluted loss per share
128,222
112,576
127,814
112,392
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210805006068/en/
Investors: Glenn Schulman, PharmD, MPH Corporate
Communications, Aurinia gschulman@auriniapharma.com
Media/Corporate: Dana Lynch Corporate Communications,
Aurinia dlynch@auriniapharma.com
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