Aurinia Pharmaceuticals (AUPH) 3 Aug 232023 Q2 Earnings call transcript

Greetings. And welcome to Aurinia Pharmaceuticals Incorporated Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

conference recorded. this reminder, a is being As I to Relations your like to for conference over turn the host, Pharmaceuticals. would now Aurinia Jamie Harrell, Investor Thank you.

may You begin.

webcast for Thank and quarter financial today’s thanks Operator. results. XXXX and everyone operational you, call Aurinia’s And six-month and to and second review discuss joining

morning on our Officer. Chief this Greenleaf, Executive are, me Joining call Officer; Chief Financial Peter the and Miller, Joe

months issued second results Aurinia morning, six June and quarter a the highlights for announcing financial This XXXX. press its operational and ended XX, release

In company XX-Q. the filed addition, statements its on quarterly Form financial

filings For which more information, with Aurinia’s please the available also Securities refer website Commission, to Exchange auriniapharma.com. Aurinia’s and on at U.S. are

a actual During materially. make current statements this These on results Aurinia risks based forward-looking may and uncertainties of may number significant subject differ and forward-looking call, to expectations. statements are

on a the future Aurinia’s its the in could and its Aurinia’s discussion press refer with and authorities. recent Aurinia’s all Form financial Exchange of XX-K Securities results report XX-Q that of and to For Canadian businesses, please annual securities report and disclosures Form filings affect release Commission on U.S. along with factors and quarterly

law, all statements. August assumes are currently such current call during made of today, Aurinia no us at noted any as to available obligation update as Thursday, Please today’s by based Except that X, note required otherwise statements unless information to XXXX, are and upon time. this

Peter? the call me turn Aurinia’s and Peter Now, to let President CEO, over Greenleaf.

call, Miller, and results. outside focus CFO the and our as the to additional you LUPKYNIS, for good key Thanks, quarter joining Joe on on everyone. update U.S. will thank our will detail provide six-month to us call morning, as on I for brief a on morning’s turn the then our metrics our today. financial this progress over commercial Jamie, call the well R&D all second performance, I to want company’s On and we

launch with we’ve versus of These months, million. to over product quarterly LUPKYNIS, of and the continued the year-to-date the increase the that to pleased the the quarter XX% XXXX. $XX.X make This last increase second an year progress second product midyear prior quarter three our of versus net LUPKYNIS revenues end highest net of our since XXXX. reporting share over increase million. through bring I’m That revenue of an of first XX% results significant quarter represents of a the $XX.X sales XX% mark to over represents

across number topline as including shipped, Underlying patient speeds this quarter-to-date a had from PSF metrics, patient to rates. persistency of as well conversion number of best of commercial wallet in financial drug our shipped, to processing performance, we terms time drug,

forms therapy improved speeds Patients was well. converted Insurance from to patient as all-time at XX%. were processing of high start an

initial converting XX% now are We from patients of to more our drug within PSF being shipped than days. XX

our in improved rates importantly, to from the XX% persistency in quarter XX-month QX. And last XX%

Lastly, to and we total of since patients patients on exposed have XXXX as currently XX, June drug launch. now X,XXX nearly the of therapy a X,XXX

for plan our three is on LUPKYNIS inter-related As I’ve on business strategies. stated previous calls, major focused

and to access drug activation, patients that getting keeping patients therapy, clinically because, is course, is last driving on the drug awareness the The ensuring being on first and LUPKYNIS, get critical. is patient of differentiating second and

patient and informed treatment. disease for need the by understanding their role doing? On are management how patient routine we urine in can major play we own a front, screening So believe an seeking and the

Braxton. Get new quarter, drove our we announced second traditional spokesperson, our Uncomfortable, disease social platforms the and of awareness beginning media Toni across branded and of with campaign, the the At launch awareness with

with their about screening, routine get serious uncomfortable their educating by and SLE and patients engaging and reinforces initiative physician. monitoring need engaging by get This the to for kidney treatment health

already of report pleased thousand awareness, overall hundreds activity. the XXX days digital media, website. visits media campaign the to through and social impressions XXX with has campaign people and that this online over I’m we’ve The marked campaign, to in increases reached of first million seen across

our members testing Patients importance and about patients education website site this family treatment. the are lupus management customer area and coming to more discuss of to their is specialist nephritis. to a early screening complete learn where find can their Also, of routine in and

sales treatment well reaching to delivering the our consumer guidelines an continuing patients in-the-field AURORA and drive customers. marketers decile as execution clinical campaign, and marketing via screening patient commercial are LUPKYNIS the for message. are social as treatment, reinforcing our While media to the top team direct-to-patient our by is They data

highest our since we’ve launched last the day our average On per a had healthcare In our March, number shared and in with of since QX we provider new repeat month engagement that launch. highest closed prescribers call, we we product.

a watermark. As communicated, call strong correlation in activity quarter quarter professionals, healthcare providing continued towards happy today, we’ve repeat beat of best between of deeper penetration terms as and share first time is This second and is Well, to makes behavior. prescribing prescribers. physicians, our the well top volume call momentum our second highly quarter to that previously we as into drug LUPKYNIS XXXX and first quarter decile and to-date that there I’m the promotion a into sensitive

and grow research is awareness message that reinforces on attitude all-time study is clinical recent and usage high. our continues Our Intent-to-prescribe an resonating. market to

and leading in intent-to-prescribe three others next over XX the the category is days months. on LUPKYNIS next over therapies over the Additionally,

to launched standard-of-care. current market regard with differentiates the imperative, further data, second In from LUPKYNIS clinical we the differentiation, excited we’re that our the new into which

These trial. or steroids function nephrotoxicity improvement the histologic demonstrated Congress poster the kidney team released AURORA does arm months. to Clinical data of control at patient’s not that further active Rheumatology Sub-study LUPKYNIS-treated XX from worsening stable Meaning, the scores be MMF Biopsy of appears low-dose similar was the any kidney the to Our patients and East. alone. This of presented with medical showed that chronicity recently at stable affairs activity and demonstrate

long-term accepted in and of the during was A&R Rheumatology and AURORA eGFR, the across journal Additionally, & official September. AURORA online Rheumatology. the journal should X trial, of years safety and it the College two at in the is of of month be American three published and looking study extension efficacy the years Arthritis

These at eGFR also provide numerous physicians. from of in two long-term These efficacy publications management be with our with the publications choice LUPKYNIS why prescribing team safety. These current differentiate and should of medical to standard-of-care data nephritis. the three-year when looking parameters, LUPKYNIS share lupus data further affairs specifically, reinforce across the drug more

alongside having patients, sales course, LUPKYNIS. are get consumer prescribing. nephritis and By on their drive and patient physicians, helping team All our lupus of expand care activating the we to impact further physicians, measurable aforementioned of marketing educating the to and activities the to messaging our are with a market through campaigns, involved

patient of quarter second a with represents is leads the forms. for to of the performance This XX% approximately XXX second We start XXXX. activity patient performance for our quarter solid an start PSFs with form consistent our quarter. first reasonably me of and This over increase had QX, totaling XXXX

seeing screening effect of with certainty and to XXX is with July, Through say to patients, and nephrologist summer to new feeling there summer their We check them the absolute it can comes believe patients the a that LN the to is the not approximately treatment. we’ve care months. during when PSFs. recorded in the it likely asymptomatic rheumatologist or due We most need condition effect of end

our That selling Also, days said, out more took and fewer the high. there office. July were in of timing the at of all-time remained the business people July an holiday Xth fundamentals

we believe to All in return of our growth and quarter. that positive other PSFs are months the the coming marketing over metrics fourth will and

period, earlier As are rates, to is onto start at patients on referenced all-time converting with XX% call, our that of patient forms during converting drug. I in an high, conversion patients the about this therapy

to XX%, and progress to quarter continues is to This and improve or quarters to of has conversion fronts. team with Our progress in drug on up over all submission several therapy PSF over the of made less. on reduce continues days and from patients first meaningful XX% the time on approximately getting improvement past patients XX to further

At increase This therapy XX XX% the quarter the at of patients end an quarters. months. about previous second XXXX of is over remain on

pleased diseases. chronic extremely months. level with It this LUPKYNIS patient line of for at is treatments see XX persistency retention are other in than shows to or We actually better

of that XX%. continues to through XX months grow. reported more small therapy only therapy, we time on remain up And about months XX remain XX% May, of XX% than that on number across on therapy In that remain patients from we’ve therapy time. period for months, seeing XX% the the seen patients number This we’re is as a patients reported now at XX of of and patients about of through previously while

to to stable support at We that’s out continues believe Consistent that periods, Aurinia safety our years patients three done with product’s dosing work regimen, Alliance. programs patient the is and XX% to treatment per XX%. can efficacy and be and persistency day prior this the pulling approximately by to attributed adhering to be through tablets profile

to just Based the million increasing $XXX year our million net of XXXX. we to $XXX discussed revenue from range on $XXX guidance QX million the guidance we’re everything I’ve to in for gave product updated million $XXX

regulatory lupus we commitment Turning filing in remain the track continue nephritis by now AURXXX and end to to of year activity. of a and for enroll pediatric We our IND registry an our our post-approval R&D on the study. to

globalization Lastly, let our with close efforts for me LUPKYNIS.

Our the momentum this significant year. U.S. resulted partnership outside has with Otsuka launch in

Switzerland has in launched Norway. approval LUPKYNIS in approved Austria, formal now and Our the was U.K. and Finland recently has receive and Germany, partner Italy. reimbursement Sweden, both LUPKYNIS in

Otsuka, EU company eligible and reminder, a XXXX. which $XX from three five half the milestone would of as the million And we the additional an second major of approval still for be reimbursement upon pricing in in expect countries,

in in low million we In year. for track sales the on eligible the addition, an $XX Upon the of additional regulatory related product launched. towards milestone double-digit approval with be work royalties along Japan once would end approval our submission for net remains is on Japan,

financials to Joe return call call end the have. open of of at over now up So, to the with more the I’d I’ll that, turn and a you then might the to for review quick for detailed what to like recap questions our see and line

it me Joe? with Joe. let over to So, that, turn

Thank you, morning, and good Peter, everyone.

compared XXXX the commitments restricted decrease to of December first an cash, June the approved million increase cash million, sales advancement investments offset our and and in the As we quarter $XXX.X of equivalents, for $XXX.X the to at cash, cash purchases, pipeline end in the XX, restricted post-approval related of partially investment by the monoplant, payment primarily activities, inventory is LUPKYNIS. in expenditure from drug investments receipts second capital LUPKYNIS, of commercialization continued cash short-term of our equivalents, XX, million XXXX. and $XXX.X of cash at and cash XXXX, The had

resources development commercial We financial that operation, our activities, which our FDA related for supporting of packaging including drug years. funding we infrastructure, next obligations least at post-approval believe programs includes advancing have research and sufficient and funding fund to commercial supply, working the commercial our capital few manufacturing funding and our commitments,

LUPKYNIS, two XX% months ended penetration net and June increase detail to let’s main primarily financial product quarter into minutes million. is second regarding and and year net six our XX% for predominantly The the Now in market. $XX.X months go LN for the XXXX quarter Total of six revenue second from XXXX, for from XX, increased an the ended million Total second XX, from revenue respectively. XX, revenue into customers a in $XX.X to the our by to net the further increased take $XX.X $XX.X due increase XXXX. driven million prior million few results June the quarter June

$XX,XXX discussed mix higher of this Net over on on per more an per patient than our remains a annualized as initial and therapy realizable and basis. previously, for continue guidance we net evolve. revenue basis year realizable approaching per on as dosing to per we quarterly time patients go expect on patient as payer stay But LUPKYNIS and revenue figure patient persistency,

of million, ended XX, $XX.X for the were months in prior $XXX.X XXXX quarters June June and sales Total million XXXX, expenses June for cost XXXX cost XX, six million the sales $XX.X operating the million Total was XX, versus respectively. $XXX.X of and year ended and period.

XX, further XXXX June by second XXXX, during consistent sales six months ended that quarters the XXXX. breakdown June of June drivers due were a sales Let Cost and fluctuations. now remain June XX, XX, $X.X and $X Cost an the sales you occurred of XXXX give for periods quarter million for were the $X.X of for million FDA Cost a expenses, and of operating of and of process XX, to increase revenues, respectively. ended million write-down batches validation of both offset XXXX. me

XX, June was XX% quarters XXXX ended Gross June the and and margins for XX, Gross XX%. was June approximately XXXX for XX, XX% XX%. XX, the months margin June XXXX XXXX six and approximately and ended

$XX.X Selling, June million XX, share-based compensation general and XXXX, expenses, and inclusive $XX.X XXXX for June XX, services, incurred ended June the respective quarters. months XXXX professional SG&A million expense expenses, quarters for expense June in XX, $XX.X XXXX, respectively. share-based SG&A million million inclusive $XX.X the SG&A administrative, of and The of were fees decrease XX, the and expense were was during for compensation a and six drivers ended primary fees and in the respectively. including legal decrease

offset increase expenses, in legal compared by the decrease XXXX, compensation prior the the services, months which in was and an fees due professional increase a expense period, year June For marketing to and share-based includes fees. ended to six XX,

Non-cash included respectively. Non-cash $X.X XXXX, for was with ended expense for expense $X.X share-based six within for and was the XX, $XX.X June compensation June period. XX, million prior SG&A million SG&A year million months and expense million quarter XXXX the included versus share-based compensation the $XX.X

continuation June the and as XXXX, same for and AURXXX its programs six and the XX, increase cost increase were XX, advances of for post-approval costs XXXX was for completion primary million related increase the million periods share-based and organization study, offset months ended costs, supply and drug-drug compensation six $XX.X an fulfills of decrease The The million XXXX, benefit ended $XX.X Research $XX.X related June and study and salaries partially related of June contract XX, were FDA XXXX in for employee a to inclusive the respectively. AURXXX June June to and XXXX. were expense the compensation and which by was months the June XX, XX, resource, LUPKYNIS. X expense quarters a inclusive million expenses, in quarter $XX.X ended expenses, development, and compared ended commitments XX, clinical the to completed the interaction in share-based share-based XXXX. compensation, AURORA R&D company R&D XXXX and substantially drivers as

$X.X $X.X six the within June within million XXXX. R&D million quarters included the XXXX, was XXXX XX, and and expense compensation Non-cash expense $X share-based included Non-cash XXXX R&D June and for expense XX, compensation and ended expense XX, $X.X million XX, was million respectively. ended June June for share-based months

income $XXX,XXX respectively. was $X.X and quarters XX, and Other for the net June XXXX million XXXX, ended June XX,

net exchange For finance related change ended June with income other foreign income to to in was prior million compensation versus in is months expense the value expense deferred primarily increase million assumptions to period. coupled in income The $X.X other our the six $X related a year the gain liability, XX, related monoplant XXXX, our in fair liability.

the and due versus investment was rates. $XXX,XXX year XX, periods $XXX,XXX was interest income increase XXXX and yields million on June income to for June $X.X XX, XXXX The respectively. at a million June between for XXXX, Interest months quarter. of six is XX, higher our increased as second prior result Interest $X.X the ended

ended ended net June For loss net common XX, June for $X.XX to million million net per share the XXXX, common of of the recorded share, quarter $X.XX loss Aurinia quarters $XX.X loss or net XXXX. loss as or a compared per $XX.X a XX,

a months loss share months million or net loss $X.XX $X.XX June XX, the loss XXXX, for net of common of share, as ended or For a June the loss to per ended XXXX. per Aurinia net million six common XX, compared net six recorded $XX.X $XX.X

Peter? to for some back Peter hand like over to I’d the that, remarks. call closing With

Joe. Thanks,

globally, We keeping the look the half many the and quarter obviously throughout delivering As results we’re way. highs along and on results and in second the through for the our posted excited in need our the hitting heard strong to about patients business. U.S. and you to we focused across momentum all-time call, forward first of year, remain LUPKYNIS you driving the

might now I for for have. again the us for the to thank everyone questions call. any open you want call joining up We’ll

from And our Instructions] [Operator Go question ahead, first Schwartz you. Leerink from Thank Joseph. comes Joseph Partners.

all. the Joe for and you morning Hi, congrats on this and Will progress on for is This questions quarter. this thank our taking

So the we been LUPKYNIS seasonality, help for be on follow-up. Thank about look just how to third have quarter, one to as for place the in now we company you. And a should as of maybe since this has impact several the has to launch. And provide seasonality? prior market relative sales to thinking experienced on us some quick color start mitigate quarter? and the the in I the years more strategies Can you

Okay. Will. Thanks,

peel said I not I call, launch, the last hate it just I question quarters, And more since as our impact back biggest was the being to seen infectious a business. was, specialty back, into in disease on seasonality, few summertime. go than brings so this if typical viruses to able impact moving an and the people to think whether use summer, because years the So, you we’ve but

But on I during this prior year effect question COVID is the in a summer COVID. what impact was patient was, it there’s during shutdown business, our think hangover into we’ve the flow. saw is clearly, that, or COVID coming summertime, this we seen clearly in the And or impact an a

screening. asymptomatic, So physician because summer to regular is the disease and the running into patients a this months aren’t office during quiet patient in get

quantitatively, and it we can even less just the can staff, July. we the clearly we that diagnosis time we’ve track. what hear in the that in during of we our qualitatively, that in numbers saw numbers, cetera, we spending And not but track testing in the seen see through office. Second, We month numbers physicians, this office track et that

we time own less effect people even though there’s cetera, even can just the manage clearly, where lastly, that, we taking activity. et summer company, have and then, are of manage in And vacations, periods our these that

if first you not month of at three. Clearly, to this predictive it July, we’ve last we’ve PSFs, far about seen two into impact. because about the on it’s the look through the revenue we’ve relates years. talked So the not over we’ve fairly performance year seen look patients some quarter July therapy, talked as and what trending the trending you at the But of if performance so

the get see on get we’ll and call, QX QX, we we’ll to pattern QX we last as as saw continued -- -- growth that and into our said belief to August growth move that is a we year. So back just back like into

impact. we forecasting confident during about we growth feel that a that don’t So give although But July of to time that be bit the and the this continue forward, that period little summer a see pattern. guidance, has we’ll able business it’s moving month thinking as clear on the dip we quarterly of

Your marketing the or mitigating increasing within from strategies. through to our to question special flow continue and their care, have of a organization in pre-summer put we continuity Well, patients on try spend awareness everything summer time to sales targeted during incentive to of initiatives summer. to during the increase really, do we compensation our the blitz and

other to to I to this be as is going need take an to going the about predictive softer that’s is the summer than I think to on quarters a impact why and thing something that we basis. forecasting as go-forward continue business being So we’re potentially think say a I manage that forward, through, have

going the trends, the In on have emphasis the feel in past tactical we’re and the field. of QX, not confident in our activity of we people of just to flow terms we amount have very tactics, based but

now I well. impact through AURORA a also that the issued but big messaging through our publication three-year not will the just well. working looking and like measures efficacy team out clinical that’s been Remember, And there, think, study as a lastly, measures data, EGFR, safety as extension medical at the have X was we’re

your submitting you if sneak just updated going helpful. data, time if just you. Biopsy to thoughts FDA these could the this Great. an to and what line us Could quick potential are for remind Thank you. are then on I be label the follow-up And include here. in a Very to data? you on a Thank

Yeah.

Biopsy have the package extension trial. FDA, regular answer short we’ve we been of of have data, just in including that the a the cuts So data data AURORA and data not the including dialogue from submitted to but and original the is, also other

a have back our we’ve communicate don’t dialogue goal from FDA. the said be get set more negotiation the the added that we As that’s the time past, we’ll to to this will in line get to agency, But try label, when concrete it. for a you. with but to We

the would benefit. is hope this prescriber extremely important we Our can affect the to and patient believe be --

where the be to will So we’ve have it’s and to that see think hope clinical that’s it prominently, our going the to usage have affects agency. But to how appear the it agency. packaged section the in agency we’re note way we’re that’s and/or as that the this and positioning determined. statement statement, a it we label, is discussion hopefully the indication is but trial appear with We it important to to the appear

Great. Thanks again.

Thanks, Will.

ahead, Ed our Go question comes H.C. Wainwright. next Arce Ed. And from from

Good everyone, Hi. and my congrats quarter. taking the and for questions on morning, thanks

a all-time of underlying And this while highs I mean and what to of I broader PSFs in are down a change on quarter, very been sort basically metrics sort at ask XXXX. since December and beat near raise or question is here. slightly So quarter drivers there a wanted other all this hasn’t are pricing just second are of row. the

follow-ups. I’m how the have would and just then get you takes, you how characterize of of increase guidance? wondering sort a to revenue I and So couple in And your puts

Yeah. Ed. question, the for Thanks Okay.

mean, track last and characterized every it metric an was just that -- about in well. saw in the we too. we at business quarter the I high quarter think we you I all-time

to right? months, cases, it six XX converting faster, XX it’s whether and be doing seem some on patients months, to three we’re months, all nine So doing drug improving, on drug, XX at in months, well, patients months, keeping months, the

consistent, in all-time of types fairly at compliance too. regimen high, then but almost quarters two been has and to has an past measures the been the These

Obviously, So with patients patients, those those revenue keeping having on drug. are impact types of on every measures, quarter. we’re keeping

look change PSFs to that change we NRX. of in for And an indicator AURORA to that NRX terms are we our -- our leading as the have leading distribution change pattern equivalent would until at change. in We indicator, of won’t measure order measure

for If limited So, distribution our the or start trade, data start go form to actual we we process. but broader, more -- the typical to open see initial do more you in prescription were level prescription example, become prescribing specialty could IQVIA data the us. is form patient up not to at our class at it’s and important, stage, retail become for prescribing this of

But there’s it at getting and a get before XX a become or those very of XX% leading or delay XX% as are least indicator for if days, on, PSFs patients said, patients, XX% we drug, reality. XX on those is days our

the those in PSFs quarter. prior working that current quarter prior we’re quarter, from any So

So your can all of grow. to financial metrics continue

XX seeing in see can offset point months, where still business that PSFs could think you you keeping improvements them I you is, grow, drug, angle if persistency, patients work eventually, don’t you’re of going faster, drug et and way come when on if The at on new persistency your the you eventually mix, patients XX business getting you into cetera. hit in and stop but PSFs about months every to a six-sigma be this

less or keep process into bring product. will years, we of order we three to the XX% patients need and the be that to keeping Like Ed, patients you out XX% continued go to our through if mix revenue of years as the growing learning a were in

it you thing pricing, XXXX, I We which me, take did One total Joe correct, think, XXXX, said I price in -- and said a XX X.X%. here XXXX. to do a we haven’t up taken just was want you of did with is think, I we increase but take since

our increase in net -- And it’s we have through contracts that think the good price around or increases, control of there price to some for with where price for that the some our year place. so will about agreements have mechanism X-ish in annual we of or a our percent out at

I think your So I answered some question. of

make in sure for. Let just what check to that’s me were you looking

That’s you Peter. but that. patients This metric And think you helpful. may for -- get payments very mentioned on repeat this a would much. just if then, don’t the you approvals I then the more. quarter lastly, milestone couple have And of didn’t QX? expect new therapy, launches could the that and Yes, I ex-U.S.? have if this I that you with Appreciate Thanks before, coming number. and

within new on in had we on therapy, the itself, the patients terms of new in So quarter XXX patients approximately therapy quarter.

about on question there’s Your Otsuka, the talked to two milestones our guided with on ex-U.S. near-term is we’ve agreement call. and and from driven the this in that

One Europe, is, of course, get in we continue to countries approving the drug.

$XX the and three But of then that approval is in country. but have the from are doing well. can obviously, in the our Then back year actual get separate, the go continues a when the top from which said, countries five assessments in believe own the to global approval, happen then towards year. their approval, of half EU pricing countries EU and a We individual the we’ve Otsuka, million drug is milestone have that coming calendar we we agreement

cost The in under we but upon have And million XXXX cycle, year-end. a the can well. we and second review milestone management agreement of longer if of could drug do the a in near-term we milestone in lead royalties doing see approval you the is that included into double-digit as by in plus have a said you $XX Japan. We’ve if supply PMDA to normal the we’re Japan, Otsuka course, with that, a and review we we low get XXXX, cycle, submit should work believe that

so much. Great. Thanks

Thanks, Ed.

Jacqueline next from from comes our [ph] Jacqueline. Go And ahead, question Lu Oppenheimer.

the on to chronic publications, long at have time Thank Would is product to see the Great sort share later been at added taking utilization Justin in improvement evolving points, XX able Jacqueline you those is persistency of question. numbers use? awareness education what tail our numbers the Kim. This Hi. such especially given and of how for product having, months. you be

a you, question. good That’s Thank Jacqueline.

as go we’ve and guys appreciate metrics transcript when go to first out off, that must and get to so numbers back people I where, back to numbers. So, the we there point look said, I all many that hope our and read you have transcript, the give actually the I’m throwing at

just So meaningful report that, like we we have when information appreciating fact it. quantitatively, the to

it’s think to the important give I just perspective.

out XX not stage. months this at we’ve to given So

gone an enough patients historically or enough that insignificant low for right numbers. coming we give on when that has want crossing when reason time than of we’ve the and into we’ll provide be XX is. happy what And that months we those now, a of period, that patients we end been, to an just don’t number enough more time -- we to estimate projection have pretty crossing don’t of period, have But

as they’ve They’re call, single-digit the said previously over been. but improved. we all on percentages around up vicinity XX-month they’re where But all XX-month, persistency reported, have and the XX-month within of

our initiatives some that. are helping So believe we of

through cetera. that patient Aurinia a believe due of we’re persistency the work also to basis through the is XX-day dosing et awareness programs lot Alliance, on we’re compliance doing, the We doing regimen around to a

we’ll on Braxton making Toni top the a that but And of we problems. Uncomfortable as think patients’ was our report with there’s what in that, the to ones kidney-related at you campaign of going funnel all just when I just seeing report get have yesterday, are up. months get your number rates of an is commercial enough to checked interesting diagnosed because we the our of end the point I filling lot in sort Anyway, talking medicines, a with be terms lupus if diagnosis we’ll staying lupus nephritis, well. to look not As persistency for point up also patients, we big to of centers sure over the terms on are this there in one in hope team reported you some of And Get metrics XX but like? being we’ve other time and opportunity uptick of able

Thank Great. you.

Martin David from ahead, Bloom comes And David. from Go our Burton. next question

does come when Hi, I’m the that to taking guys. the on docs patients the and rebound Thanks a and for stay patients drug back a or for holiday persistency. quickly? low therefore, come can does period, it patients LUPKYNIS, quickly take proteinuria wondering think questions. my the on should off Back

I by not proteinuria So not All or tell be the take does to drug, to long. we a driven happen, patient driven, are way, guidelines, pay has other patient payers you year to the anything it which, when In come off anymore, to the for drug list we’ve payer hey, is reduced, see It can after want on the David, holiday, because driven. they align with a being saying it’s -- crossed put don’t patients and doc as they patients reasons. for like but going do from past, therapy. them year, can physician usually -- is of words, a is, won’t their host the said a to they’re clinically different deciding to the follow-up, of lost deciding in that drug patients

a remitting I’ve that there, majority program is almost drug drug. on that it, patients but it be our a quantitative discontinues not the a with readdressed they treat while And positive physicians, like, -- get a can In who physicians do numbers almost proteinuria patient have they of The them guideline can know there do not if attended on this. way. and as posted of drug, back grouping elevates, patients terms although control. like that -- come not is, back? off do talks in treated we’ve the positive they data, not disease, We again, do that a of get flaring how We about albeit out if physicians of and around,

we and that see So do happening.

Okay. Great. Shifting gears a bit.

I Board do. know what you kind selling wasn’t bit, mind? have a initiated you the strategic you a has changed you your of were had your possibly adamant mind? of kind So when to wondering your the changed -- call, QX factors went thing I’m include are could that company you now review company the sale why but changing that right of the the into that

in us parties So necessarily may as that’s quarter, standpoint, by just the selling to in that two determined se. something has have the don’t see per said from I to I guess, that first be There company qualify what equation. I

And company. a public we’re

open all to shareholders. We have And as a from mind we we we always alternatives. an announced were fiduciary were -- in alternatives. responsibility strategic that June to strategic keep this to shareholders. to we And back doing It’s have exploring in said, requests we response

merger, actually not company every anything the and the in be to may This an licensing doing of sale grow strategic is to from day. just something or in the transaction outset, a does and LUPKYNIS course believe to first, may nothing to leadership a So the review transaction type company. we that and the result could continuing nature of exploring alternatives outright -- of exploring staying or the acquiring team company, our an

and things in second, said, -- it’s in at to right you this of how nature, then the the because fulsomeness what alternatives, is, as And time, given because we’re strategic looking These process. particular, review take selling we’ve we’re a company, are wholesome right? went strategic approaching we

And we’ve the we of urgency review in to for we timetable be -- we way providing a the although have process, necessary. the of it’s terms don’t sense completion along updates appropriate not until progress a set and actually a of believe and/or and anticipate

the it. it’s David, company, probably your -- we call, concluded adamant every -- point adamant result, not first of to we’ve as So to process not I But are going a where strategic being about on the we’ve say, against review get sale ever until upon what said. and we’re a with

are responsibilities. in we I exercise our to that tango fiduciary understand and we public a takes and company think it the

right So now. doing the outside open we’re strategic what always for we’re to company of alternatives

Okay. it. Thanks. Got

Thanks, David.

question from Stacy And ahead, TD comes Cowen. our next Ku from Go Stacy.

on much is another for on Stacy. so This Hi. very congratulations [ph] you questions Thank Vish for quarter. strong taking our and

done positive LUPKYNIS is prescribing are even on its diverse. that So potential. specialist and very their striking LUPKYNIS But among all in our very those techs some on views long-term clinician long-term clinicians aligned we’ve

So is prescribed could induction you getting of both maybe are published can and And this being now? speak data? pattern the to will alone as we a LUPKYNIS induction versus little and adoption long-term LUPKYNIS do used get bit of alone light on change where sense right what that so maintenance you in of maintenance versus are seeing for terms think experiences right patients that how percentage now you of new in gained the a

Well, to want we don’t remission. hear want of, treatment physicians and a world the induce in the remission to maintain talk disease of about I I

on say, the the investors best patients best are right? the at way period can time guide think think drug, docs way are that patients to time using I how drug the as about how or I time So the how the intervals should report, and long of stay drug towards percent we intervals on we

reasons the and months And percentage as why how something discontinue, the XX while I percentage used. there’s is two a multitude of different being docs drug years think the that about and patients to across of actually says our across the year,

to on should are control should We’ve seen open-ended keep -- them while numbers the guidelines out look like get top from should years, how long patients? leaders and from We’ve heard that And thought actually physician three patient this, say, I pretty under say, patients maintain on lectures control. the well, under stay five years top you there therapy. a they to

of different physicians drug over our whether induce, There’s being MMF them do there. strategies mix combination, the to there’s on long a put haul. enacted how host on on out a keep that, put Benlysta, But of them they are steroids that them and

to being And answers to drive think there and will continue question, data evolve that -- because data-driven it. drive lot data there’s data of is to out new practice physician huge new a there produced I that opportunity that by should

That’s best whether our I and look way or we XX% the that do induction XX reductions at, or that time at seeing it to you’re periods out think maintenance, seeing and it per of So XX months to still it’s declining, there’s way across it patients like looks numbers to are about report the so flatten best our drug starts more, persistency we is think curve around month. the XX% and not flattened, after months. XX% the although

data, representative on sample and about listen, question your more predictive qualitative, doc your or physician try we universe, our on a doc usage comment data take all On is product to they says, front. penetrate. use positive your awareness, they to of to our call all One of oversimplify use the more which of but how in deeper next checks, the need and time it’s over days, to extremely it is XX the intend intend on patient we to

patient or you it until at aggressively in before the a some at patient how We’ve physicians is what at There’s gram to how protein urine treat, all guidelines -- the in look a and they X they’re that X patient see universally of of grams see, level. much wait wide call from we is the lower a see got at grams guidelines, appropriate if that to get LN always they proteinuria to least an get don’t when to follow physicians guidelines, LN, treat. protein and to a this actually differences at the

So we’ve got to push that continuum down.

prescriber work And then to got our continue lastly, we base. to we on have -- to

total have but prescriber. We more and both And have number of of the still have expand ways the terms treaters of have we get go increased to -- to in to we per year-to-date, curve. continue adoption those depth the significantly

Perfect. Thank you.

from Raycroft question Maury. next Go from our comes ahead, And Jefferies. Maury

on Hi. and Good our for is questions. Congrats morning. This on Farzin you the taking update for thank Maury.

So side, the for just repeat prescribers for want on the of prescribers? longer you term? to And proportion to clarify, what remain patients them or then are hearing on from what patient therapy

didn’t it? was part I you second -- -- Can I was question, because the just catch I still repeat of that

therapy for the on for patient are remain hearing then patients to longer on you side, And them term? from what

percentage given product are have to-date the not prescribers. total probably number of of number at of that or large growing and that percentage prescribers, But numbers. utilized we’re So it, in a penetration around, terms we’ve prescribers and repeat X,XXX call

concentrated So prescriptions we’ve the do. XX a are also terms said group to that highly that of X our they in decile

some thinking, this where nets disease. okay, some this all is disease nets well, get I should many to a treat of little many how very you and of So room, be rooms, got not them how using

some sure and use we happening. they to it of don’t the our for more prescribers then my depth see So, And to want previous want that statement prescribing get back just of to to want go not but is I’ll drug. that, we

lupus urine. they congruent this be believe is grams shouldn’t are in of treating is And that is there. out to it with Some to it that is turns the protein not nephritis until of it -- X guidelines grams obviously the they X

good we’ve these have and order wider. all But increase So revenue to numbers and pace. got rate, a increase to run go are the on improving been and in PSFs deeper

Got it. And then…

them we’ve them patients, And let from side patient condition. answer. of the didn’t on to made me sure not be aware and I they so on to research do quickly what’s say, get the know drug of keep to, drug. going market on then your answer, seriousness seen I’m question We that their need

that impactful the of the most are of underlying outcomes that When disease centers around you the you terms every management It’s predominance the of day. and things like for the you actually or fatigue joint, have skin bad be and SLE, disease can proteinuria. the the most in don’t things and the significant feel feel

and the the a enacted to patients messaging campaign stay more or Uncomfortable it’s educate part on to to is of their in campaign with the drug. cup pee severe get are they lupus them Get on what do And we’re tactics and of component the using, that to whether need

the happening our at say, me, both regimen, not if to -- well, adherence look and doing every don’t because I far it’s quarter. of and just our least improving but in in it numbers, prescribing at is effectiveness metrics look we numbers out, best happening to say, way those at are so metric the is -- think to have persistency front and qualitative measure we a to

sense. Makes

customers. can provide another clarification, I some main mentioned wondering more that? am from you two if you Just revenue on color in increase

Yeah.

a limited We model. have distribution

section, revenue it -- those in DCs. it’s ship financial a because We We qualification. and Joe’s have to was two distributors we specialty and when we recognize

Got margins. last said have you the better gross it. that And guess, Joe. you Like for question, I have

is the point? this what to wondering at net So gross

Yeah.

in we FDA We gross have was The that net batches. to validation fact driven percentages. fluctuation to our the had not some by specifically XXXX margin guided for reserves

didn’t had same the XXXX. to have So the build year. prior we in reserves inventory thing We some in

much. so Got it. Thanks

Thank you.

comes Justin. our from And Kim next question Oppenheimer. ahead, Justin Go from

Hi. Hi, everyone.

late. just joining one to a questions wanted for a the asked. of Sorry ask to little I follow-up

the just I on touch wanted expectations priorities, and there guidelines strategic any announced of for base XXX? terms updates your on to the milestones or to in pipeline With XXX

it under moving we to going that, engage that that. IND by develop We Yeah. to for to we’ll into asset this questions on a an in AURXXX No an we I And basically are projecting think where conversation do filing changes. and able an said of target believe we’re then year-end goes, it, how more where early-stage you’re competes, filing. to next all for as the IND right be

deliverable our AURXXX, in think IND. doing projections, on there of terms and as formulation Nothing on change target no XXXX tweaking that’s we’re the off previously, Justin, we about previous some either. we’ve a still talked but for

to degree -- to right pipeline, was would into a or ex then process at strategic we’re was looking now. big degree, develop Obviously, business development. And also externalization that the I some other review

All right. so Great. Thanks much.

Justin. Thanks,

you for today. us you thank forward updating great look Okay. saying I question. want in day. to joining next our We all just Operator, if to that’s a close by last the Have quarter.

participation. thank your does Thank you. This for today’s We you conclude conference.

time day. disconnect your may lines at You this and a have wonderful