Aurinia Pharmaceuticals Inc. has released its 10-K report, leading to a 24.5% drop in its shares, which are now trading at $6.02.
The company's annual report for 2023 highlights a significant increase in total revenue, which reached $175.5 million, compared to $134.0 million in 2022. This increase was primarily driven by a surge in product revenue, which rose to $158.5 million in 2023 from $103.5 million in 2022. The rise in product revenue was attributed to increased sales of LUPKYNIS, with 2,066 patients on therapy at the end of 2023 compared to 1,525 at the end of 2022.
However, the company reported a net loss of $78.0 million in 2023, a slight improvement from the $108.2 million loss in 2022. This was despite an increase in cost of sales, which reached $14.1 million in 2023 from $5.7 million in 2022, and a decrease in selling, general, and administrative expenses to $195.0 million in 2023 from $196.4 million in 2022.
Aurinia Pharmaceuticals also recognized $16.0 million and $30.6 million in license, collaboration, and royalty revenue in 2023 and 2022, respectively. The company's collaboration with Otsuka contributed to this revenue, including a $10.0 million pricing and reimbursement milestone in September 2023.
For more information, read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $463 | $318 | $50,118 | $45,605 | $134,030 | $158,853 |
| Operating Margins | -11683% | -28598% | -208% | -396% | -83% | -56% |
| Net Margins | -13849% | -27794% | -204% | -397% | -81% | -49% |
| Net Income (k) | -$64,120 | -$88,385 | -$102,680 | -$180,966 | -$108,180 | -$77,191 |
| Free Cash Flow (k) | -$51,685 | -$63,670 | -$75,526 | -$157,995 | -$79,821 | -$37,876 |
| Current Ratio | 18.3 | 27.9 | 13.11 | 12.63 | 9.6 | 5.77 |
Based on the current market conditions, the stock is likely fairly valued at a price of $6.02 per share due to the company's strong revenue growth and increasing capital expenditures, which indicate potential for future growth. However, it's important to note that the company's operating margins have been significantly lower than the industry average, although they are showing a positive trend with a yearly growth rate of 69.2%.
In terms of value factors, the company has a poor record of retained earnings and consistently negative free cash flows, with a negative trailing twelve month P/E ratio. Despite these challenges, the firm has shown a compounded average growth rate of 8.1% over the last 5 years, indicating potential for improvement in the future.
It's important to note that this analysis is not personalized financial advice and individuals should conduct their own research or consult with a financial advisor before making any investment decisions.
