Aurinia Pharmaceuticals Inc. reported significant financial improvements in its third quarter of 2024, with total revenue reaching $67.8 million, a 24.3% increase from $54.5 million in the same period of 2023. Product revenue for the quarter was $55.5 million, up from $40.8 million year-over-year. For the nine months ended September 30, 2024, total revenue was $175.3 million, compared to $130.4 million in the prior year, reflecting a 34.4% increase. The company attributed this growth primarily to increased sales of its key product, LUPKYNIS (voclosporin), which is the first FDA-approved oral therapy for active lupus nephritis.

Aurinia achieved a net income of $14.4 million for the third quarter of 2024, a significant turnaround from a net loss of $13.4 million in the same quarter of 2023. For the nine-month period, the company reported a net income of $4.3 million, compared to a net loss of $51.1 million in the previous year. This improvement in profitability was supported by a gross margin of approximately 91% for the third quarter, up from 88% in the prior year.

The company has been undergoing strategic restructuring to enhance its focus on LUPKYNIS and the development of AUR200, a next-generation therapy for autoimmune diseases. In February 2024, Aurinia reduced its workforce by approximately 25% and discontinued the AUR300 R&D program. Further restructuring announced on November 7, 2024, is expected to reduce the workforce by an additional 45%, with a one-time restructuring charge anticipated to be between $15 million and $19 million in Q4 2024. The restructuring aims to streamline operations and is projected to yield annualized cash savings exceeding $40 million.

As of September 30, 2024, Aurinia's cash, cash equivalents, and restricted cash totaled $37.1 million, with short-term investments amounting to $311.6 million. The company reported a working capital of $361.9 million, indicating a solid financial position to support ongoing operations and strategic initiatives.

Aurinia's collaboration with Otsuka Pharmaceutical Co., Ltd. continues to be a significant revenue source, contributing $12.3 million in license, collaboration, and royalty revenue for the third quarter of 2024. The company also recognized a $10 million milestone payment following the approval of LUPKYNIS in Japan.

Overall, Aurinia's financial performance reflects a robust recovery and strategic focus on its core product offerings, positioning the company for future growth in the biopharmaceutical sector.