Aurinia Pharmaceuticals (AUPH) shares ended the last trading session 7.5% higher at $8.63. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.6% gain over the past four weeks.The sudden price rise can be attributable to positive investor expectations for Lupkynis, the company’s sole marketed drug, which is approved for the treatment of adults with active lupus nephritis (LN). Lupkynis sales increased 25% year over y ...

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was $59.9 million, up 33% from $45.1 million in Q4 2023 [8][16] - For the full year 2024, total revenue was $235.1 million, up 34% from $175.5 million in 2023 [8][16] - Net product sales of LUPKYNIS for Q4 2024 were $57.6 million, up 36% from $42.3 million in Q4 2023 [9] - For the full year 2024, net product sales were $216.2 million, up 36% from $158.5 million in 2023 [9] - Cash flow from operations for Q4 2024 was $30.1 million, compared to $14.3 million in Q4 2023 [10] - Cash flow from operations for the full year 2024 was $44.4 million, compared to cash flow used in operations of $33.5 million in 2023 [10] - As of December 31, 2024, cash, cash equivalents, restricted cash, and investments totaled $358.5 million [11][17] - Gross margin for Q4 2024 was 91%, compared to 88% in Q4 2023; for the full year 2024, gross margin was 88%, down from 92% in 2023 [20] Business Line Data and Key Metrics Changes - The increase in net product sales of LUPKYNIS was primarily due to an increase in the number of cartons sold to specialty pharmacies [9] - Cost of revenue for Q4 2024 was $5.6 million, compared to $5.4 million in Q4 2023; for the full year 2024, cost of revenue was $28.2 million, up from $14.1 million in 2023 [19] Company Strategy and Development Direction - The company has a commercial strategy focused on four key growth drivers: expanding business at academic medical centers, targeting key rheumatology prescriber segments, leveraging new ACR lupus nephritis treatment guidelines, and improving continuity of care for lupus nephritis patients [12][13] - The company expects total revenue for 2025 to be in the range of $250 million to $260 million and net product sales in the range of $240 million to $250 million [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of LUPKYNIS, citing a strong sales growth of 36% in 2024 and a solid position to start 2025 [12][14] - Management noted that historical financial results provide sufficient insight into the health of the business for projecting future results [11][58] Other Important Information - The company initiated a Phase 1 study for AUR200 in September 2024, with initial results expected in Q2 2025 [14][15] - The company has repurchased approximately 9.7 million common shares for about $70 million since the launch of the share repurchase program in Q1 2024 [18] Q&A Session Summary Question: Details on maximizing LUPKYNIS opportunity with current sales force - Management highlighted a focus on high prescribing rheumatology offices and the importance of the new ACR guidelines for early diagnosis and treatment [25][30] Question: Expectations for AUR200 data in Q2 - Management indicated that normal pharmacodynamics and pharmacokinetic data are expected, which will inform the next steps in the study [26][32] Question: Growth expectations for LUPKYNIS beyond 2025 - Management refrained from providing long-term guidance but emphasized historical trends as a basis for future projections [36][38] Question: Initial two months of 2025 and commercial outlook - Management stated that the guidance range is based on current market observations and historical financial results [46][49] Question: Decision to stop reporting PSS metrics - Management explained that after five years on the market, historical results provide sufficient insight for future projections [54][58] Question: Impact of ACR treatment guidelines on prescriber behavior - Management noted that over 50% of prescriptions come from rheumatologists, with expectations for gradual improvement in treatment behaviors [65][70] Question: Timeline for AUR200 studies - Management indicated that timelines will be clearer after the completion of the single-ascending dose study [66][72]