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Aurinia Pharmaceuticals (AUPH)
NASDAQ:AUPH
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Aurinia Pharmaceuticals
(NASDAQ:AUPH)
70Outperform
Positive Factors
Guideline updates
The overall updated guidelines are seen as a net positive for the continued commercialization of Lupkynis.
Regulatory approval
Aurinia announced that the Japanese Health Authorities have approved Lupkynis for the treatment of lupus nephritis.
Revenue growth
Lupkynis product revenue increased 36% year over year, indicating a strong year of growth.
Negative Factors
Competitive landscape
Numerous anti-APRIL/BAFF therapeutics are in development, thus the competitive landscape remains fierce.
Patent uncertainty
The longevity of the Lupkynis patent protection in the U.S. remains an uncertainty with maximum composition of matter patent term extension ending in October 2027.
Sales guidance
Sales guidance for FY25 is within expectations but below consensus.
Aurinia Pharmaceuticals (AUPH) vs. S&P 500 (SPY)
Market Cap
$1.01B
Dividend YieldN/A
Average Volume (3M)1.61M
Price to Earnings (P/E)192.0
Beta (1Y)0.98
Revenue Growth33.97%
EPS GrowthN/A
CountryUS
Employees130
SectorHealthcare
Sector Strength70
IndustryBiotechnology
Share Statistics
EPS (TTM)0.04
Shares Outstanding137,339,020
10 Day Avg. Volume1,556,904
30 Day Avg. Volume1,614,469
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.13
Price to Cash Flow (P/CF)10.00
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.75Price Target Upside31.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Aurinia Pharmaceuticals Business Overview & Revenue Model
Company DescriptionAurinia Pharmaceuticals Inc. (AUPH) is a biopharmaceutical company focused on the development and commercialization of therapies to treat autoimmune diseases. Headquartered in Victoria, British Columbia, Aurinia's primary product is LUPKYNIS, which is approved for the treatment of adult patients with active lupus nephritis. The company's mission is to improve the lives of patients suffering from serious diseases with significant unmet medical needs.
How the Company Makes MoneyAurinia Pharmaceuticals makes money primarily through the sale of its flagship product, LUPKYNIS. As a prescription medication, the company generates revenue from sales to healthcare providers and pharmacies, which then distribute the drug to patients. Aurinia also engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance the development and distribution of its products, which can provide additional revenue through licensing agreements and milestone payments. The company's earnings are influenced by factors such as product pricing, market penetration, and the expansion of its product pipeline.
Aurinia Pharmaceuticals Financial Statement Overview
Summary
Aurinia Pharmaceuticals exhibits strong revenue growth and a positive shift in cash flow, indicating operational improvements and financial stability. The company has reduced its leverage and maintains a strong equity position, although profitability remains an area for further enhancement.Income Statement
Aurinia Pharmaceuticals has shown a notable improvement in revenue, increasing from $45.6 million in 2021 to $235.1 million in 2024, demonstrating strong growth. The gross profit margin remains high, suggesting effective cost management. However, the net profit margin has just turned positive in 2024 after years of negative figures, indicating challenges in achieving consistent profitability. The EBIT and EBITDA margins remain negative but show a trend towards break-even.72
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of approximately 68.6% in 2024. The debt-to-equity ratio is low at 0.21, reflecting conservative leverage. However, the return on equity is low, indicating limited returns on shareholders' investments. The balance sheet reflects financial stability but suggests room for improvement in generating higher returns.68
Positive
Cash Flow
Aurinia Pharmaceuticals has transitioned from negative to positive operating cash flow, with a substantial increase in free cash flow from -$34.2 million in 2023 to $44.1 million in 2024. The positive cash flow trajectory indicates improved operational efficiency and cash management. The free cash flow to net income ratio is strong, reflecting efficient conversion of earnings into cash.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 235.13M | 175.51M | 134.03M | 45.60M | 50.12M | Gross Profit |
| 206.88M | 161.37M | 128.37M | 44.51M | -209.00K | EBIT |
| -4.69M | -91.69M | -111.47M | -180.74M | -104.29M | EBITDA |
| 31.73M | -63.05M | -103.65M | -177.44M | -102.92M | Net Income Common Stockholders |
| 5.75M | -78.02M | -108.18M | -180.97M | -102.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 358.48M | 350.49M | 389.39M | 466.08M | 398.33M | Total Assets |
| 550.64M | 548.06M | 470.86M | 543.37M | 463.66M | Total Debt |
| 79.37M | 97.61M | 8.09M | 8.74M | 8.41M | Net Debt |
| -4.06M | 48.73M | -86.08M | -223.16M | -263.94M | Total Liabilities |
| 173.17M | 170.11M | 65.42M | 64.28M | 55.91M | Stockholders Equity |
| 377.48M | 377.95M | 405.44M | 479.09M | 407.75M |
| Cash Flow | Free Cash Flow | |||
| 44.11M | -34.18M | -79.82M | -159.19M | -77.20M | Operating Cash Flow |
| 44.39M | -33.46M | -79.53M | -157.69M | -69.86M | Investing Cash Flow |
| 39.26M | -6.71M | -60.63M | -103.87M | -158.19M | Financing Cash Flow |
| -49.09M | -5.13M | 2.43M | 221.11M | 194.38M |
Aurinia Pharmaceuticals Technical Analysis
Negative
7.41
Price Trends
8.04
Negative
8.35
Negative
7.46
Negative
Market Momentum
0.04
Positive
44.83
Neutral
17.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUPH, the sentiment is Negative. The current price of 7.41 is below the 20-day moving average (MA) of 8.08, below the 50-day MA of 8.04, and below the 200-day MA of 7.46, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AUPH.
Aurinia Pharmaceuticals Risk Analysis
Aurinia Pharmaceuticals disclosed 33 risk factors in its most recent earnings report. Aurinia Pharmaceuticals reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aurinia Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.01B | 191.97 | 1.52% | ― | 33.97% | ― | |
60 Neutral | $1.01B | ― | -23.01% | ― | 168.06% | 44.66% | |
58 Neutral | $1.06B | ― | -209.35% | ― | -19.97% | -37.22% | |
48 Neutral | $1.00B | ― | -57.48% | ― | 13698.99% | 31.46% | |
48 Neutral | $6.25B | 1.14 | -46.26% | 2.69% | 19.24% | 1.75% | |
46 Neutral | $1.02B | ― | -95.21% | ― | 9.03% | -25.00% | |
43 Neutral | $1.06B | ― | -26.84% | ― | 1.99% | 15.95% |
* Healthcare Sector Average
Performance Comparison
AUPH
Aurinia Pharmaceuticals
7.41
2.37
47.02%
CLDX
Celldex
16.84
-22.23
-56.90%
IOVA
Iovance Biotherapeutics
3.30
-8.59
-72.25%
ARDX
Ardelyx
4.46
-2.34
-34.41%
OCUL
Ocular Therapeutix
7.11
-0.69
-8.85%
LQDA
Liquidia Technologies
13.47
-0.21
-1.54%
Aurinia Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.79% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and improved cash flow, driven by the success of LUPKYNIS and operational efficiencies. However, challenges include a decline in gross margin and increased costs related to restructuring. The overall sentiment is balanced with significant achievements and notable challenges.Highlights
Significant Revenue Growth
For the fourth quarter of 2024, total revenue was $59.9 million, up 33% from $45.1 million in the same period of 2023. For the full-year 2024, total revenue was $235.1 million, up 34% from $175.5 million in 2023.
Record Net Product Sales of LUPKYNIS
In the fourth quarter of 2024, net product sales of LUPKYNIS were $57.6 million, up 36% compared to $42.3 million in the same period of 2023. For the full-year of 2024, net product sales were $216.2 million, up 36% from $158.5 million in 2023.
Improved Cash Flow
For the year ended December 31, 2024, cash flow generated from operations was $44.4 million, compared to cash flow used in operations of $33.5 million in 2023.
Strategic Positioning and Future Projections
Aurinia expects total revenue for 2025 in the range of $250 million to $260 million and net product sales in the range of $240 million to $250 million.
Lowlights
Gross Margin Decline
For the year ended December 31, 2024, gross margin was 88%, compared to 92% in 2023.
Increased Cost of Revenue
For the year ended December 31, 2024, cost of revenue was $28.2 million compared to $14.1 million in 2023, primarily due to amortization of the finance right-of-use lease asset.
Strategic Restructuring Costs
The decrease in operating expenses was partially offset by one-time termination benefits, contract terminations, and other costs associated with strategic restructuring efforts in 2024.
Company Guidance
During the Aurinia Pharmaceuticals earnings call, significant guidance was provided for the year ahead, highlighting key financial metrics and strategic plans. For the fourth quarter of 2024, Aurinia reported total revenue of $59.9 million, a 33% increase from the same period in 2023, while full-year revenue reached $235.1 million, marking a 34% increase year-over-year. Net product sales of LUPKYNIS also saw substantial growth, with $57.6 million in the fourth quarter, up 36% compared to the previous year, and $216.2 million for the full year, representing a 36% increase. Cash flow from operations was notably positive, with $30.1 million generated in Q4 and $44.4 million for the full year, a significant turnaround from a cash outflow of $33.5 million in 2023. Aurinia ended the year with $358.5 million in cash and investments. Looking forward, the company projects total revenue for 2025 to be between $250 million and $260 million, with net product sales ranging from $240 million to $250 million. These projections are supported by strategic initiatives, including expanding the market penetration of LUPKYNIS, leveraging new lupus nephritis treatment guidelines, and advancing the AUR200 pipeline with expected Phase 1 results in the second quarter of 2025.Aurinia Pharmaceuticals Corporate Events
Business Operations and StrategyFinancial Disclosures
Aurinia Pharmaceuticals Reports Strong Q3 Growth and Restructuring
Positive
Nov 7, 2024
Aurinia Pharmaceuticals reported significant financial growth in Q3 2024, with net product revenue up by 36% year-over-year, driven by increased market penetration of LUPKYNIS. The company is undergoing strategic restructuring to focus on continued LUPKYNIS growth and AUR200 development, expecting annualized savings of over $40 million post-restructuring. With strong cash flow and revenue guidance between $210-$220 million for 2024, Aurinia aims to enhance operational efficiency and accelerate key pipeline products.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.