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Aurinia Pharmaceuticals (AUPH)
NASDAQ:AUPH
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Aurinia Pharmaceuticals (AUPH) AI Stock Analysis

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AUPH

Aurinia Pharmaceuticals

(NASDAQ:AUPH)

Rating:73Outperform
Price Target:
$9.50
▲(4.74%Upside)
Aurinia Pharmaceuticals has a solid overall stock score, driven by strong financial performance and positive earnings call highlights. However, the high valuation and mixed technical signals, along with potential risks from patent litigation and market competition, moderate the score.
Positive Factors
Financial Performance
Aurinia reported 1Q-2025 results beating estimates.
Product Revenue
Lupkynis product revenue came in ahead of estimates, increasing 25% year-over-year.
Negative Factors
Sales Guidance
Sales guidance for FY25 is within expectations but below consensus.
Strategic Position
Disappointment that Aurinia will remain standalone, as more value could have been created with strategic synergies within a more established commercial organization.

Aurinia Pharmaceuticals (AUPH) vs. SPDR S&P 500 ETF (SPY)

Aurinia Pharmaceuticals Business Overview & Revenue Model

Company DescriptionAurinia Pharmaceuticals Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies to treat various diseases with unmet medical need in the United States and internationally. The company offers LUPKYNIS for the treatment of adult patients with active lupus nephritis. It has a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company is headquartered in Victoria, Canada.
How the Company Makes MoneyAurinia Pharmaceuticals generates revenue primarily through the sales of its FDA-approved drug, Lupkynis. The company markets this drug mainly in North America, and it is designed to treat patients with active lupus nephritis. Aurinia also seeks revenue through partnerships and collaborations with other pharmaceutical companies to expand the reach and application of its products. Additionally, the company may receive milestone payments and royalties as part of licensing agreements with other entities involved in the development and commercialization of its drug. These partnerships and collaborations play a significant role in the company's financial growth and market expansion.

Aurinia Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 13.38%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter with significant revenue growth, improved cash flow, and reduced operating expenses. However, there are ongoing challenges, including patent litigation, potential regulatory risks, and competition in the lupus nephritis treatment market.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue for Q1 2025 was $62.5 million, up 24% from $50.3 million in Q1 2024. Net product sales of LUPKYNIS were $60 million, up 25% from $48.1 million in the same period of 2024.
Improved Cash Flow
Cash flow generated from operations was $1.3 million in Q1 2025, compared to a negative $18.6 million in Q1 2024. Excluding restructuring payments, cash flow was $12.4 million.
Positive Net Income
Net income for Q1 2025 was $23.3 million or $0.17 per share, compared to a net loss of $10.7 million or $0.07 per share in Q1 2024.
Efficient Operations
Total operating expenses decreased to $40.6 million in Q1 2025 from $63.6 million in Q1 2024, primarily due to strategic restructuring efforts.
Rheumatology Market Growth
The company is focusing on educating rheumatologists about LUPKYNIS, seeing improvements in rheumatology prescribing.
Pipeline Progress
The company remains on track to report initial results from the Phase 1 study of AUR200, a dual BAFF/APRIL inhibitor, later in the quarter.
Negative Updates
Cash and Investment Decrease
Cash, cash equivalents, restricted cash, and investments decreased to $312.9 million as of March 31, 2025, from $358.5 million at the end of 2024.
Patent Litigation
Aurinia faces ANDA patent challenges for LUPKYNIS, with ongoing litigation and uncertainty regarding the outcome.
Potential Regulatory and Market Risks
The company is monitoring potential new federal government policies on tariffs and transfer pricing, as well as competitors like Roche's Gazyva entering the lupus nephritis market.
Company Guidance
During the Aurinia Pharmaceuticals Inc. Q1 2025 Earnings Call, the company provided guidance for the fiscal year, projecting total revenue in the range of $250 million to $260 million and net product sales of LUPKYNIS between $240 million and $250 million. The call highlighted a strong performance in the first quarter, with total revenue reaching $62.5 million, a 24% increase from $50.3 million in Q1 2024, and net product sales of LUPKYNIS at $60 million, up 25% from $48.1 million in the previous year. The company also reported a notable improvement in cash flow, generating $1.3 million from operations, compared to a negative cash flow of $18.6 million in Q1 2024. Aurinia ended the quarter with cash, cash equivalents, restricted cash, and investments totaling $312.9 million. The company remains focused on commercial execution and operational efficiency, aiming to capitalize on the updated American College of Rheumatology lupus nephritis treatment guidelines by promoting LUPKYNIS as a first-line therapy. Additionally, Aurinia is on track to report initial Phase 1 results for AUR200 later in the quarter.

Aurinia Pharmaceuticals Financial Statement Overview

Summary
Aurinia Pharmaceuticals exhibits strong financial performance, with substantial revenue and profitability growth, a stable balance sheet with low leverage, and healthy cash flows. The improvement in Gross Profit Margin and Net Profit Margin, along with positive EBIT and EBITDA margins, indicates effective operational management.
Income Statement
85
Very Positive
Aurinia Pharmaceuticals has shown impressive revenue growth, with Total Revenue increasing from $134.03 million in 2022 to $247.30 million TTM (Trailing-Twelve-Months) in 2025, reflecting a robust growth trajectory. The Gross Profit Margin and Net Profit Margin have significantly improved, indicating better operational efficiency and profitability. EBIT and EBITDA margins have turned positive in the TTM period, showcasing a strong recovery from past losses.
Balance Sheet
75
Positive
The balance sheet is solid with a Debt-to-Equity Ratio well under 1, indicating low leverage. The company's Return on Equity has improved due to positive Net Income, enhancing shareholder value. However, the Equity Ratio has decreased slightly, reflecting a more balanced asset and liability management.
Cash Flow
80
Positive
The company exhibits a positive trend in Free Cash Flow with significant growth, suggesting improved financial health. The Operating Cash Flow to Net Income Ratio shows strong cash generation relative to net earnings. The Free Cash Flow to Net Income Ratio also indicates that cash flows are robust in relation to profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue235.13M175.51M134.03M45.60M50.12M
Gross Profit206.88M161.37M128.37M44.51M-209.00K
EBITDA31.73M-63.05M-103.65M-177.44M-102.92M
Net Income5.75M-78.02M-108.18M-180.97M-102.68M
Balance Sheet
Total Assets550.64M548.06M470.86M543.37M463.66M
Cash, Cash Equivalents and Short-Term Investments358.48M350.49M389.39M466.08M398.33M
Total Debt79.37M97.61M8.09M8.74M8.41M
Total Liabilities173.17M170.11M65.42M64.28M55.91M
Stockholders Equity377.48M377.95M405.44M479.09M407.75M
Cash Flow
Free Cash Flow44.11M-34.18M-79.82M-159.19M-77.20M
Operating Cash Flow44.39M-33.46M-79.53M-157.69M-69.86M
Investing Cash Flow39.26M-6.71M-60.63M-103.87M-158.19M
Financing Cash Flow-49.09M-5.13M2.43M221.11M194.38M

Aurinia Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.07
Price Trends
50DMA
8.21
Positive
100DMA
8.14
Positive
200DMA
8.13
Positive
Market Momentum
MACD
0.25
Negative
RSI
62.65
Neutral
STOCH
69.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUPH, the sentiment is Positive. The current price of 9.07 is above the 20-day moving average (MA) of 8.44, above the 50-day MA of 8.21, and above the 200-day MA of 8.13, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 69.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.23B32.8411.23%29.20%
64
Neutral
$1.05B-36.26%127.33%21.31%
60
Neutral
$1.52B-188.03%-11.42%0.26%
52
Neutral
$1.58B-23.20%24.49%5.14%
52
Neutral
$7.62B0.05-63.03%2.44%16.33%0.31%
51
Neutral
$1.84B-57.19%-0.33%-3.59%
49
Neutral
$1.33B-51.85%11070.12%32.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AUPH
Aurinia Pharmaceuticals
9.07
3.47
61.96%
CLDX
Celldex
23.87
-19.99
-45.58%
IOVA
Iovance Biotherapeutics
3.29
-6.14
-65.11%
ARDX
Ardelyx
4.39
-1.10
-20.04%
OCUL
Ocular Therapeutix
11.96
3.68
44.44%
LQDA
Liquidia Technologies
18.77
7.31
63.79%

Aurinia Pharmaceuticals Corporate Events

Executive/Board ChangesShareholder Meetings
Aurinia Pharmaceuticals Approves New Equity Incentive Plan
Neutral
May 15, 2025

At the annual general meeting held on May 15, 2025, Aurinia Pharmaceuticals‘ shareholders approved an amended Equity Incentive Plan and revised Bylaws allowing shareholders to set the number of directors. The meeting also resulted in the election of several board members and the approval of PricewaterhouseCoopers LLP as the company’s independent accounting firm. These changes are expected to enhance corporate governance and align executive compensation with shareholder interests.

The most recent analyst rating on (AUPH) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Aurinia Pharmaceuticals stock, see the AUPH Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 10, 2025