Akebia Therapeutics (AKBA -19.02%), a biopharmaceutical company specializing in kidney disease treatments, reported its earnings on August 7, 2025, covering results for the quarter. The headline news was a marked upturn in revenue and a transition to positive GAAP net income. The company’s GAAP revenue was $62.5 million, driven by strong uptake of its anemia therapy Vafseo and resilient sales from Auryxia, its longstanding kidney drug. Net income reached $0.2 million, sharply higher than the consensus loss estimate and last year’s $8.6 million GAAP net loss. With Vafseo’s commercial rollout in full swing and no major generic competition yet affecting Auryxia, Akebia turned in a quarter that reflected robust momentum, despite caution ahead for one of its main revenue drivers.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.00 | $(0.02) | $(0.04) | $0.04 |
| Revenue (GAAP) | $62.5 million | N/A | $43.6 million | 43.3% |
| Auryxia Net Product Revenue | $47.2 million | $41.2 million | 14.6% | |
| Net Income (GAAP) | $0.2 million | $(8.6 million) | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Key Success Factors
Akebia Therapeutics develops and markets therapies for people living with chronic kidney disease. Its key commercial products are Vafseo, an oral medicine that treats anemia in adults undergoing dialysis, and Auryxia, a tablet for managing high blood phosphate and iron deficiency in kidney disease patients.
The company's strategy hinges on expanding Vafseo’s reach, defending Auryxia revenues amid looming generic threats, and progressing a pipeline of new kidney-focused drugs. Commercial success depends on quickly broadening access to Vafseo through large dialysis groups, maintaining Auryxia market share as exclusivity expires, and securing regulatory milestones for new therapies.
Second-Quarter Performance: Revenue Drivers and Business Developments
Vafseo played a pivotal role in driving the company’s strong quarter. As an oral hypoxia-inducible factor prolyl hydroxylase (HIF-PH) inhibitor—a class of medications designed to stimulate the body's production of red blood cells—Vafseo generated $13.3 million in net revenue. This was up from $12.0 million in Q1 2025, reflecting a roughly 55% increase in prescription demand. More than 725 prescribers wrote prescriptions, More than 80% of prescriptions were refills. The average refill dose increased by approximately 25%. The company maintained broad dialysis provider contracts, and by the end of the quarter, its addressable patient pool reached about 40,000, with expectations to jump to more than 75,000 by the end of Q3 2025 through new protocol launches.
A major development came from Akebia’s collaboration with DaVita, a leading U.S. dialysis provider, which began a pilot rollout of Vafseo in more than 100 clinics. Management expects this pilot to pave the way for full prescribing access by year-end 2025, a leap in potential market reach. Akebia also announced new advances in clinical development. It completed enrollment in the VOICE trial, which is investigating Vafseo’s safety and efficacy compared with injectable erythropoiesis-stimulating agents (ESAs); 2,116 patients were enrolled, and top-line data are expected in early 2027, started the VOCAL trial focused on three-times-weekly dosing, and set the groundwork for the VALOR Phase 3 trial in non-dialysis patients, aiming for initiation by late 2025.
Auryxia, Akebia’s oral tablet for hyperphosphatemia (high blood phosphate) and iron deficiency anemia in chronic kidney disease, posted GAAP net product revenue of $47.2 million, up 14.6% versus Q2 2024. The drug’s loss of exclusivity in March 2025 has yet to trigger the expected surge in lower-cost generics, as only one authorized generic -- sold by Akebia’s own distributor -- is available and no other generics have launched. Management acknowledged the unpredictability of when further generic competition may enter, creating a significant revenue risk in the future.
Costs remained under control. Cost of goods sold was $9.9 million, less than last year’s $17.0 million, largely thanks to the end of a non-cash amortization expense. Research and development expenses rose to $11.0 million as the company pushed ahead with Vafseo development and clinical trials. Selling, general, and administrative expenses (GAAP) stayed flat at $26.6 million. Despite absorbing about $7.0 million in non-cash warrant liability costs and $5.4 million in non-cash interest linked to earlier settlements, Akebia reported positive GAAP net income of $0.2 million, a notable improvement from prior loss-making periods.
A key aspect of the quarter was the jump in cash and cash equivalents to $137.3 million as of June 30, up from $51.9 million at December 31, 2024. The company says it is funded to pursue profitability under its present business plan. Akebia does not currently pay a dividend.
Product Portfolio: Vafseo and Auryxia in Focus
Vafseo is a pill developed to treat anemia, or low red blood cell count, caused by chronic kidney disease in adults who require dialysis. Unlike most established treatments, which are injected, Vafseo offers the convenience of oral dosing. Its market opportunity is estimated at nearly $1.0 billion for U.S. dialysis patients, based on current ESA pricing, and Akebia has established commercial supply agreements covering nearly all of this patient population as of January 2025.
Auryxia is a tablet indicated for both hyperphosphatemia and iron deficiency anemia in patients with chronic kidney disease. The company relied heavily on Auryxia revenue until now, but with the March 2025 loss of market exclusivity, revenue faces downward pressure from generic rivals. Strong contract retention and lack of generic approvals preserved sales growth, Management noted that future Auryxia sales levels are difficult to predict due to uncertainty around the timing of potential additional generic competition.
Looking Ahead: Financial Outlook and Upcoming Milestones
Management expressed confidence that the company will maintain its momentum, pointing to the ongoing adoption of Vafseo by major dialysis providers and the expected doubling of its addressable market as key protocols are rolled out by organizations like DaVita, Dialysis Clinics, Inc, and Innovative Renal Care in the coming quarters. Akebia expects Vafseo prescribing access to increase from about 40,000 patients at the end of Q2 2025 to more than 75,000 by the end of Q3 2025. Akebia plans to launch the VALOR Phase 3 clinical trial for vadadustat in non-dialysis chronic kidney disease patients before year end 2025, which could allow label expansion and target a larger and more lucrative market segment.
No explicit forward revenue or earnings guidance was provided for the rest of fiscal 2025. Management emphasized plans to continue investing in expanding the pipeline. Investor attention will stay focused on Vafseo’s continued penetration in dialysis centers, the timeline for broader market access, and signs of additional generic competition for Auryxia, which remains a substantial swing factor for future results.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
