Aurinia Pharmaceuticals(US:AUPH)2022-02-27 16:00Revenue Performance - Aurinia's net product revenue for 2021 reached $45.5 million, a significant increase following the FDA approval of LUPKYNIS on January 22, 2021[290]. - Total revenue for 2021 was $45.6 million, a decrease of $4.5 million compared to $50.1 million in 2020, primarily due to the absence of licensing revenue from Otsuka in 2021[304]. - The company expects continued growth in net product revenue as it executes its post-approval commercialization strategy for LUPKYNIS[290]. Operating Expenses - Total operating expenses increased to $226.3 million in 2021, up from $154.4 million in 2020, driven by commercialization efforts for LUPKYNIS[290]. - Selling, general and administrative (SG&A) expenses rose to $171.4 million in 2021, compared to $96.0 million in 2020, reflecting increased costs associated with commercial operations[306]. - SG&A expenses increased by $75.5 million, driven by a $38.9 million rise in salaries and incentives, a $12.8 million increase in share-based compensation, and a $15.0 million rise in professional fees[308]. Research and Development - Research and development (R&D) expenses were $51.1 million in 2021, slightly higher than $50.3 million in 2020, as the company continued to invest in its development programs[304]. - R&D expenses slightly increased to $51.1 million for the year ended December 31, 2021, compared to $50.3 million in 2020, with a primary driver being a $10.0 million upfront license and accrued milestone expense related to new developmental programs[309][310]. - Aurinia anticipates ongoing increases in R&D spending to support the development of LUPKYNIS and its new assets, AUR200 and AUR300[290]. - The company expects R&D expenses to increase as it continues to develop pipeline assets and meet post-approval obligations related to LUPKYNIS[311]. Cash Position - The company ended 2021 with $466.1 million in cash, cash equivalents, and short-term investments, deemed sufficient to fund current business plans[291]. - Cash and cash equivalents as of December 31, 2021, were $231.9 million, with short-term investments of $234.2 million, compared to $272.4 million and $126.0 million, respectively, at the end of 2020[314]. - Cash used in operating activities was $157.7 million for the year ended December 31, 2021, compared to $69.9 million in 2020, primarily due to commercial infrastructure spending for LUPKYNIS[317]. - Cash provided by financing activities increased to $221.1 million in 2021, primarily due to net proceeds of $196.7 million from an ATM facility and $24.0 million from stock option exercises[320]. - Material short-term cash requirements are approximately $117.3 million, with long-term cash requirements estimated at $163.3 million, excluding annual costs related to human capital and other operational expenses[322]. Profitability Metrics - The gross margin for the year ended December 31, 2021, was approximately 98%, attributed to the commercial sales of LUPKYNIS[305]. - Amortization of acquired intellectual property increased to $2.1 million in 2021 from $1.3 million in 2020, mainly due to internal-use software implementations[312]. - Interest income decreased to $0.5 million in 2021 from $1.5 million in 2020, attributed to lower interest rates on investments[313]. - Other expenses decreased significantly to $0.6 million in 2021 from $6.8 million in 2020, primarily due to the revaluation of deferred compensation[312]. Strategic Developments - Aurinia announced the acquisition of two novel assets, AUR200 and AUR300, with an IND submission for AUR200 projected in 2023[289].