Aurinia Pharmaceuticals Inc.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
AUPH$16.46+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001600620-26-000062
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001600620-26-000075
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 58 current paragraphs.
37 unchanged; 20 reworded; 1 added; 3 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
For the three and nine months ended September 30, 2026, the increase in total R&D expense was primarily due to an increase in: (i) the number of employees dedicated to R&D activities; (ii) clinical manufacturing and supply; and (iii) other research and development expenses as the Company advances its development programs.
Removed paragraphs (3)
Previous report
For the three months ended June 30, 2026, the decrease in SG&A personnel expense was primarily due to: (i) a decrease in the amount of non-cash share-based compensation expense related to the departures of certain former Company officers in March 2026; and (ii) an increase in the amount of non-cash share-based compensation expense that was reversed due to forfeited, unvested equity awards during the three months ended June 30, 2026.
Previous report
For the three and six months ended June 30, 2026, the increase in R&D personnel-expense was primarily due to an increase in employee-related costs to support development activities.
Previous report
For the three and six months ended June 30, 2026, the increase in R&D non-personnel expense was primarily as a result of an increase in clinical supply and distribution, partially offset by lower contract research organization and developmental expenses due to timing and support of our development activities.
Reworded paragraphs (20)
Previous wording
Aurinia has recently initiated PRESERVE, a Phase 4, multicenter study investigating the combination of LUPKYNIS and belimumab, obinutuzumab or anifrolumab in patients with lupus nephritis. Belimumab is a B cell-activating factor (BAFF) inhibitor indicated for the treatment of both systemic lupus erythematosus (SLE) and lupus nephritis. Obinutuzumab is a CD20-directed cytolytic antibody indicated for the treatment of lupus nephritis. Anifrolumab is a type 1 interferon receptor antagonist indicated for the treatment of SLE. PRESERVE will investigate whether the multi-target approach of combining LUPKYNIS with these biologic agents improves outcomes in patients with lupus nephritis. Planned enrollment is approximately 150 patients across approximately 50 sites in the US. The Study’s primary endpoint is the proportion of patients achieving complete renal response (CRR) at 6 months.
Current wording
Aurinia has recently initiated PRESERVE, a Phase 4, multicenter study investigating the combination of LUPKYNIS and belimumab, obinutuzumab or anifrolumab in patients with lupus nephritis. Belimumab is a B cell-activating factor (BAFF) inhibitor indicated for the treatment of both systemic lupus erythematosus (SLE) and lupus nephritis. Obinutuzumab is a CD20-directed cytolytic antibody indicated for the treatment of lupus nephritis. Anifrolumab is a type 1 interferon receptor antagonist indicated for the treatment of SLE. PRESERVE will investigate whether the multi-target approach of combining LUPKYNIS with these biologic agents improves outcomes in patients with lupus nephritis. Planned enrollment is approximately 150 patients across approximately 50 sites in the U.S. The Study’s primary endpoint is the proportion of patients achieving complete renal response (CRR) at 6 months.
Previous wording
For the three and six months ended June 30, 2026, net product sales of LUPKYNIS were $79.4 million and $153.0 million, up 19% and 21%, respectively, from $66.6 million and $126.5 million, respectively, in the same periods of 2025.
Current wording
For the three and nine months ended September 30, 2026, net product sales of LUPKYNIS were $79.4 million and $232.4 million, up 12% and 18%, respectively, from $70.6 million and $197.2 million, respectively, in the same periods of 2025.
Previous wording
For the six months ended June 30, 2026, cash flows from operating activities were $85.1 million, up 87% from $45.5 million in the same period of 2025.
Current wording
For the nine months ended September 30, 2026, cash flows from operating activities were $131.5 million, up 46% from $90.0 million in the same period of 2025.
Previous wording
As of June 30, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $443.1 million, compared to $398.0 million at December 31, 2025. For the six months ended June 30, 2026, cash outflows from financing activities were $48.9 million, which included the repurchase of 5.0 million of the Company’s common shares for $74.9 million partially offset by proceeds from issuance of common shares for equity awards, net of tax withholding payments, of $32.7 million.
Current wording
As of September 30, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $486.9 million, compared to $398.0 million at December 31, 2025. For the nine months ended September 30, 2026, cash outflows from financing activities were $53.2 million, which primarily included the repurchase of 5.0 million of the Company’s common shares for $74.9 million partially offset by proceeds from issuance of common shares for equity awards, net of tax withholding payments, of $35.9 million.
Previous wording
Comparison of the Three and Six Months ended June 30, 2026 and 2025
Current wording
Comparison of the Three and Nine Months ended September 30, 2026 and 2025
Previous wording
The following table sets forth our results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands):
Current wording
The following table sets forth our results of operations for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
For the three and six months ended June 30, 2026, net product sales of LUPKYNIS were $79.4 million and $153.0 million, up 19% and 21%, respectively, from $66.6 million and $126.5 million, respectively, for the same periods in 2025. The increase is primarily due to an increase in the number of LUPKYNIS cartons sold to specialty pharmacies, driven by further lupus nephritis market penetration.
Current wording
For the three and nine months ended September 30, 2026, net product sales of LUPKYNIS were $79.4 million and $232.4 million, up 12% and 18%, respectively, from $70.6 million and $197.2 million, respectively, for the same periods in 2025. The increase is primarily due to an increase in the number of LUPKYNIS cartons sold to specialty pharmacies, driven by further lupus nephritis market penetration.
Previous wording
License, collaboration and royalty revenue consists of revenue from a collaboration and licensing agreement with Otsuka to develop and commercialize oral voclosporin in voclosporin in Japan, the European Union (the “E.U.”), the United Kingdom (the “U.K.”), Switzerland, Russia, Norway, Belarus, Iceland, Liechtenstein and Ukraine (collectively, the “Otsuka Territories”) in exchange for: (i) a $50 million upfront cash payment; (ii) regulatory and commercial milestone payments; and (iii) royalties ranging from 10% to 20% on net sales in the Otsuka Territories.
Current wording
License, collaboration and royalty revenue consists of revenue from a collaboration and licensing agreement with Otsuka to develop and commercialize oral voclosporin in Japan, the European Union (the “E.U.”), the United Kingdom (the “U.K.”), Switzerland, Russia, Norway, Belarus, Iceland, Liechtenstein and Ukraine (collectively, the “Otsuka Territories”) in exchange for: (i) a $50 million upfront cash payment; (ii) regulatory and commercial milestone payments; and (iii) royalties ranging from 10% to 20% on net sales in the Otsuka Territories.
Previous wording
For the three and six months ended June 30, 2026, license, collaboration, and royalty revenue was $3.8 million and $8.0 million, up 12% and 36%, respectively from $3.4 million and $5.9 million for the same periods in 2025. The increase is primarily due to manufacturing services provided to Otsuka for sharing the capacity of the Monoplant.
Current wording
For the three and nine months ended September 30, 2026, license, collaboration and royalty revenue was $4.3 million and $12.2 million, up 54% and 39%, respectively, from $2.8 million and $8.8 million, respectively, for the same periods in 2025. The increase is primarily due to manufacturing services provided to Otsuka for sharing the capacity of the Monoplant.
Previous wording
For the three and six months ended June 30, 2026, cost of revenue was $6.6 million and $13.1 million, respectively, down 7% and 17%, respectively from $7.1 million and $15.7 million, respectively, for the same periods in 2025. The decrease is primarily due to a decrease in sales of LUPKYNIS inventory to Otsuka, which has a low gross margin.
Current wording
For the three and nine months ended September 30, 2026, cost of revenue was $8.3 million and $21.4 million, respectively, up 1% and down 10%, respectively, from $8.2 million and $23.9 million, respectively, for the same periods in 2025. The decrease for the nine months ended September 30, 2026 is primarily due to lower sales of LUPKYNIS inventory to Otsuka, which has a lower gross margin.
Previous wording
For each of the three and six months ended June 30, 2026, gross margin was 92%, compared to 90% and 88%, respectively, for the same periods in 2025.
Current wording
For the three and nine months ended September 30, 2026, gross margin was 90% and 91%, respectively, compared to 89% and 88%, respectively, for the same periods in 2025.
Previous wording
The following table summarizes our SG&A expense for the three and six months ended June 30, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our SG&A expense for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
For the three months ended June 30, 2026, the increase in SG&A non-personnel expense was primarily due to an increase in professional fees and services, partially offset by a decrease to travel-related expenses.
Current wording
For the three months ended September 30, 2026, the decrease in SG&A personnel expense was primarily due to a lower weighted-average cost per full-time equivalent employee. For the three months ended September 30, 2026, the increase in SG&A non-personnel expense was primarily due to an increase in professional fees and services.
Previous wording
For the six months ended June 30, 2026, the increase in SG&A personnel expense was primarily due to a one-time expense for severance and health care benefits, related to employee departures, including certain former Company officers in March 2026 offset by: (i) a decrease to employee-related costs; and (ii) an increase in the amount of non-cash share-based compensation expense that was reversed due to forfeited, unvested equity awards during the six months ended June 30, 2026.
Current wording
For the nine months ended September 30, 2026, the decrease in SG&A personnel expense was primarily due to the reversal of non-cash share-based compensation expense resulting from forfeited, unvested equity awards for terminated employees. For the nine months ended September 30, 2026, the increase in SG&A non-personnel expense was primarily due to an increase in professional fees and services, partially offset by a decrease to marketing and advertising costs.
Previous wording
We continue to expect our SG&A expense in 2026 to remain substantially consistent with 2025.
Current wording
We continue to expect our SG&A expense to remain substantially consistent.
Previous wording
Research and development (“R&D”) expense consists of personnel and non-personnel expenses. Personnel-related expense includes salaries, incentive pay, benefits and share-based compensation for personnel engaged in research and development functions. Non-personnel-related expense includes contract research organizations, contract manufacturing organizations and materials used for R&D activities, including development, clinical trials, clinical supply and distribution, and other professional services.
Current wording
Research and development (“R&D”) expense consists of personnel and non-personnel expenses. Personnel-related expense includes salaries, incentive pay, benefits and share-based compensation for personnel engaged in research and development functions. Non-personnel-related expense includes contract research organizations, contract manufacturing organizations and materials used for R&D activities, including development, clinical trials, clinical supply, and other professional services.
Previous wording
The following table summarizes our R&D expense for the three and six months ended June 30, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our R&D expense for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
For the three and six months ended June 30, 2026, other (income) expense, net was $(6.2) million and $(6.0) million, respectively, compared to $9.2 million and $13.7 million, respectively, for the same periods in 2025. The change is primarily due to: (i) favorable changes in the foreign exchange remeasurement of the finance lease liability recognized in connection with the Monoplant, which is denominated in Swiss Francs; (ii) reduction in other liabilities from the one-time payment to fully settle all future obligations under one arrangement; and (iii) reduction of an accrual related to shareholder matters.
Current wording
For the three and nine months ended September 30, 2026, other (income) expense, net was $(1.3) million and $(7.2) million, respectively, compared to $0.9 million and $14.6 million, respectively, for the same periods in 2025. The change is primarily due to: (i) favorable changes in the foreign exchange remeasurement of the finance lease liability recognized in connection with the Monoplant, which is denominated in Swiss Francs; and (ii) the reduction in other liabilities from the one-time payment to fully settle all future obligations under one arrangement.
Previous wording
For the three and six months ended June 30, 2026, income tax expense was $11.4 million and $20.9 million, respectively, compared to $0.6 million and $1.6 million, respectively, for the same periods in 2025. The increase in the Company’s income tax expense in 2026 over the same periods in 2025 is primarily the result of the Company’s ability to utilize unrecognized deferred tax assets in 2025 to reduce the income tax expense. These unrecognized deferred tax assets were recognized in the three months ended December 31, 2025 and were not available to offset income tax expense for the three and six months ended June 30, 2026.
Current wording
For the three and nine months ended September 30, 2026, income tax expense was $7.0 million and $28.0 million, respectively, compared to $0.4 million and $2.1 million, respectively, for the same periods in 2025. The increase in the Company’s income tax expense in 2026 over the same periods in 2025 is primarily the result of the Company’s ability to utilize unrecognized deferred tax assets in 2025 to reduce the income tax expense. All unrecognized deferred tax assets were recognized in the three months ended December 31, 2025 and were not available to offset income tax expense for the three and nine months ended September 30, 2026.
Previous wording
As of June 30, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $443.1 million, compared to $398.0 million at December 31, 2025. For the six months ended June 30, 2026, cash flows from operating activities were $85.1 million, up 87% from $45.5 million in the same period of 2025. For the six months ended June 30, 2026, cash outflows from financing activities were $48.9 million, which included the repurchase of 5.0 million of the Company’s common shares for $74.9 million partially offset by proceeds from issuance of common shares for equity awards, net of tax withholding payments, of $32.7 million.
Current wording
As of September 30, 2026, Aurinia had cash, cash equivalents, restricted cash and investments of $486.9 million, compared to $398.0 million at December 31, 2025. For the nine months ended September 30, 2026, cash flows from operating activities were $131.5 million, up 46% from $90.0 million in the same period of 2025. For the nine months ended September 30, 2026, cash outflows from financing activities were $53.2 million, which primarily included the repurchase of 5.0 million of the Company’s common shares for $74.9 million partially offset by proceeds from issuance of common shares for equity awards, net of tax withholding payments, of $35.9 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For the six months ended June 30, 2026, the decrease in SG&A non-personnel expense was primarily due to lower marketing and advertising costs and professional fees and services.