Aurinia Pharmaceuticals Inc.

What they do

Aurinia sells LUPKYNIS (voclosporin), the first FDA-approved oral therapy for adult patients with active lupus nephritis, in the U.S. through its own commercial organization. It also supplies LUPKYNIS inventory to Otsuka Pharmaceutical for the European and Japanese markets under a collaboration and licensing agreement, earning royalties and milestone payments. The company is developing aritinercept, a dual inhibitor of BAFF and APRIL, for autoimmune diseases.

Revenue drivers

• LUPKYNIS net product sales (U.S.) — Primary revenue source; sold to two specialty pharmacies and a specialty distributor; 2025 net product sales were $271.3M, up 25% year-over-year; 2026 guidance $305M-$315M.
• License, collaboration and royalty revenue (Otsuka) — Includes royalties (10%-20%) on Otsuka net sales in approved territories and manufacturing supply services; 2025 revenue was $11.7M, down 38% due to absence of a 2024 $10M Japan approval milestone.

Recent performance

For Q2 2026, total revenue was $83.2M (up 19% YoY) and net product sales were $79.4M (up 19%). Six-month 2026 total revenue was $160.9M, net product sales $153.0M, and net income $71.8M (diluted EPS $0.53). Operating cash flow for the six months was $85.1M, up 87% from $45.5M. Cash and investments stood at $443.1M as of June 30, 2026.

Strategy

Aurinia is focused on driving LUPKYNIS penetration in the U.S. lupus nephritis market. It is investing in a Phase 4 study (PRESERVE) combining LUPKYNIS with biologics (belimumab, obinutuzumab, or anifrolumab) to potentially expand its use. The company has initiated clinical development of aritinercept in four potential indications. It returned capital to shareholders, repurchasing 5.0 million shares for $74.9M in H1 2026 and 12.2 million shares for $98.2M in 2025.

Risks

• Dependence on LUPKYNIS — LUPKYNIS is the sole approved product; any commercial failure or competitive pressure could severely hurt the business.
• Competition — Competes with BENLYSTA, GAZYVA, and off-label treatments like MMF plus corticosteroids and first-generation CNIs; inability to change treatment practices limits growth.
• Commercial execution — Maintaining an effective U.S. sales and marketing organization is expensive and challenging; failure could adversely affect LUPKYNIS sales.
• Pipeline risk — Aritinercept is in early development; clinical failure could impair growth prospects beyond LUPKYNIS.

Outlook

Management reiterated 2026 guidance: total revenue of $315M-$325M (up 11%-15%) and net product sales of $305M-$315M (up 12%-16%). They plan to continue executing on LUPKYNIS market growth and advance the PRESERVE study and aritinercept development. The company expects to maintain strong operating cash flow, having generated $85.1M in H1 2026.