Aurinia Pharmaceuticals (AUPH 13.41%), a biopharmaceutical company focused on therapies for autoimmune diseases, released its second-quarter 2025 earnings on July 31, 2025. The headline news: revenue (GAAP) came in at $70.0 million, which exceeded analyst expectations of $63.8 million by 9.7% (GAAP). Diluted earnings per share (GAAP) were $0.16, just ahead of the $0.15 GAAP estimate, and a large jump from $0.01 in the prior year (GAAP, Q2 2024). Management also increased its full-year revenue and net product sales forecasts, signaling confidence in ongoing business trends. The quarter continued a positive stretch for the company, showing business momentum and disciplined cost control.
Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
---|---|---|---|---|
EPS – Diluted (GAAP) | $0.16 | $0.15 | $0.01 | 1,500 % |
Revenue (GAAP) | $70.0 million | $63.8 million | $57.2 million | 22.2 % |
Net Product Sales | $66.6 million | $55.0 million | 21.1 % | |
Net Income (GAAP) | $21.5 million | $0.7 million | 2,971.4 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Business Focus
Aurinia Pharmaceuticals develops and markets therapies for autoimmune diseases, with a primary focus on lupus nephritis, a severe kidney complication commonly resulting from systemic lupus erythematosus. Its main commercial product is LUPKYNIS, an oral therapy designed for adults with active lupus nephritis.
The company’s commercial strength depends on the adoption and sales growth of LUPKYNIS, its partnership with Otsuka Pharmaceutical for international markets, and investment in pipeline assets like AUR200, a new therapy under development for autoimmune disorders. Maintaining strong intellectual property protections and navigating competition and regulatory dynamics are also central to ongoing success.
Quarter Highlights: Revenue Growth and Commercial Execution
In the quarter, Aurinia’s total revenue increased 22% year over year. The bulk of revenue came from LUPKYNIS. This growth follows updated American College of Rheumatology treatment guidelines that now recommend therapies like LUPKYNIS as first-line options, bolstering adoption.
LUPKYNIS is now approved in the United States, Europe, Japan, and other territories, supported by its collaboration and licensing agreement with Otsuka. License, collaboration, and royalty revenue -- including sales from Otsuka-distributed markets -- saw a 55% jump to $3.4 million, a notable growth driver outside the United States.
The company reported a sharp swing in profitability for the three months ended June 30, 2025, compared to the same period in 2024. Diluted EPS (GAAP) grew to $0.16 from $0.01 in the year-ago quarter, while net income (GAAP) climbed to $21.5 million compared to $0.7 million in Q2 2024. These improvements were mainly driven by higher sales and continued cost reductions following a restructuring in November 2024. Selling, general, and administrative expenses fell from $44.9 million to $26.0 million for the three months ended June 30, 2025, compared to the same period in 2024, with selling, general, and administrative expenses (GAAP) falling from $44.9 million in Q2 2024 to $26.0 million in Q2 2025, aided by lower personnel costs and improved operational efficiency.
Operational cash flow reached $45.5 million for the first six months of 2025, compared to an outflow in the same period of 2024. After factoring out restructuring-related payments, operating cash flow reached $57.0 million for the first half of 2025. The restructuring produced meaningful cost reductions, with the company remaining on pace for about $40 million in annualized savings.
Management also advanced the company’s product pipeline. The lead candidate, AUR200 (also called aritinercept), showed positive Phase 1 data with plans to start additional clinical trials later in 2025. This new therapy is designed as a dual inhibitor of B cell-activating factor (BAFF) and proliferation-inducing ligand (APRIL), both involved in autoimmune disease processes.
Outside of operations, the company continued to return capital to shareholders. In the first six months of 2025, the company repurchased 11.2 million shares for $90.8 million. Since the buyback program began in February 2024, the total repurchased has reached 18.3 million shares for $138.4 million. The board also authorized a $150 million increase in the buyback plan.
However, Aurinia faces risks from legal challenges to its key patents for LUPKYNIS, particularly as several generic drugmakers (called ANDA filers) have challenged its dosing protocol patents set to mature in December 2037. While these challenges are standard in the industry and trigger an automatic 30-month stay, the ultimate legal outcome is still undetermined and could affect revenue longevity if generics eventually enter the market. Roche’s Gazyva (obinutuzumab) has a PDUFA date in October 2025 and may play an important role in the lupus nephritis market.
Other business trends include Inventory levels increased from $39.2 million at December 31, 2024, to $46.5 million at June 30, 2025, and For the three months ended June 30, 2025, 'other expense' rose year-over-year, adding some volatility to net income.
AUPH does not currently pay a dividend.
Forward Guidance and Key Watch Items
After a strong start to FY2025, management raised its full-year total revenue guidance to between $260 million and $270 million, up from the previous $250 million to $260 million range. Net product sales guidance was also raised to a $250 million to $260 million range for 2025. These increases reflect confidence in ongoing commercial trends for LUPKYNIS and the broader business.
Looking ahead, the outcome of patent litigation tied to LUPKYNIS will influence long-term revenue prospects.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.