Canadian biotech Aurinia Pharmaceuticals has announced it will be axing its workforce by 45% in a major restructuring plan aimed at streamlining operations.
Aurinia expects the downsizing will save more than $40m in annual operating expenses. This decision, which follows a 25% reduction in workforce in Q1 2024, marks another significant shift for the company as it aims to tighten focus on its primary lupus nephritis treatment, Lupkynis (voclosporin), and accelerate the development of AUR200, a preclinical asset for autoimmune diseases.
The company’s Q3 2024 results – showing a 24% revenue increase year-over-year to $67.8m – were primarily driven by Lupkynis sales, which contributed $55.5m. In the statement accompanying the Q3 results, CEO Peter Greenleaf said the workforce reduction would “strengthen Aurinia’s financial position and provide more flexibility to engage in future business-building activities”.
Aurinia’s focus is now on continuing the growth of Lupkynis and bringing its sole remaining pipeline asset AUR200 closer to clinical validation. Immune modulator AUR200 was initially shelved after a strategic review last year but was reinstated in August 2024. The candidate is currently being investigated in a Phase I single ascending dose study, although the specific indications have not been shared by Aurinia. Data from the study, including safety, tolerability, pharmacokinetics, and biomarkers, is anticipated in H1 2025, as per the company website.
The restructuring efforts also reflect a response to mounting investor dissatisfaction. Earlier this year, Aurinia faced pressure from shareholders after a failed search for a potential buyer, leading to a leadership shakeup. While three board members resigned under shareholder pressure, Greenleaf retained his position, a move the board justified as necessary given “exceptional circumstances”, as per a September 2024 press release.
Aurinia reported having $348.7m in cash, equivalents, and investments at the end of Q3 2024. The company has reaffirmed its full-year 2024 net product revenue guidance, estimating between $210m and $220m.
Lupkynis was the first oral lupus therapy approved by the US Food and Drug Administration (FDA), getting the green light in 2021. Approvals followed in the EU and UK in September and December 2022, respectively.
The drug faces competition from GSK’s Benlysta (belimumab), which received FDA approval slightly earlier in December 2020 and EMA approval in May 2021. Despite Benlysta being a subcutaneous treatment, it is projected to outpace Lupkynis in sales by 2030. According to GlobalData’s Pharma Intelligence Center, Lupkynis is expected to reach $447m in sales by 2030 while Benlysta is forecasted to generate $1.76bn.
GlobalData is the parent company of Pharmaceutical Technology.
