Aurinia Pharmaceuticals(AUPH)2023-08-03 16:32Financial Data and Key Metrics Changes - Aurinia Pharmaceuticals reported net product revenues of 75.4 million, up over 52% from the same period in 2022 [5][21] - Total net revenue for Q2 2023 increased 47% to 28.2 million in Q2 2022, and for the six months ended June 30, 2023, total net revenue increased 52% to 49.8 million in the prior year [21][22] - The company recorded a net loss of 0.08 per share for Q2 2023, compared to a net loss of 0.25 per share for Q2 2022 [28] Business Line Data and Key Metrics Changes - The number of patient start forms (PSFs) totaled 451 in Q2 2023, a 10% increase over Q2 2022, with a conversion rate of 89% from PSFs to therapy, marking an all-time high [14][15] - The 12-month persistency rate for patients on LUPKYNIS improved from 51% to 54% in Q2 2023, indicating better retention [16] Market Data and Key Metrics Changes - The company has seen significant launch momentum for LUPKYNIS outside the U.S., with launches in Germany, Austria, Sweden, Finland, and Norway, and recent approvals in Switzerland, the U.K., and Italy [18] - The awareness campaign "Get Uncomfortable" reached over 750 million people, significantly increasing patient engagement and education [8] Company Strategy and Development Direction - Aurinia's strategy focuses on three main areas: driving patient awareness, clinically differentiating LUPKYNIS, and ensuring patient access to therapy [7] - The company is increasing its net product revenue guidance for 2023 from 155 million to a new range of 160 million [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of seasonality on patient flow during summer months but expressed confidence in returning to growth patterns in Q3 and Q4 [33][35] - The company is actively exploring strategic alternatives, including potential sales, in response to shareholder requests, emphasizing a commitment to fiduciary responsibilities [59][60] Other Important Information - Aurinia had cash and equivalents of 389.4 million at the end of 2022, primarily due to investments in commercialization and R&D [20][21] - The company is on track to file an IND for AUR200 by the end of the year and is advancing its lupus nephritis registry [17][18] Q&A Session Summary Question: What strategies are in place to mitigate seasonality impacts? - Management noted that summer months typically see a dip in patient flow due to asymptomatic conditions and staff vacations, but they are implementing targeted marketing initiatives to maintain patient engagement [33][35] Question: Will the biopsy data be submitted to the FDA? - Management confirmed that they have submitted a package of data to the FDA, including biopsy data, but a timeline for label updates is still under negotiation [37][39] Question: What are the underlying drivers for the recent revenue guidance increase? - Management highlighted that metrics such as patient conversion rates and persistency have reached all-time highs, contributing to revenue growth despite a slight decline in PSFs [41][42] Question: What proportion of prescribers are repeat prescribers? - Management did not provide specific percentages but emphasized the importance of increasing both the number of prescribers and the depth of prescribing [69] Question: What are patients saying about remaining on therapy longer? - Management indicated that patient feedback is generally positive, with ongoing efforts to enhance patient education and support for long-term therapy adherence [70]