Aurinia Pharmaceuticals Inc. Liquidation Value

Aurinia Pharmaceuticals Inc. (AUPH) presents a positive liquidation recovery posture as of March 31, 2026, which is atypical for a commercial-stage biopharma and is driven overwhelmingly by liquid financial assets. Total assets of $724.0M sit against total liabilities of $156.4M, yielding GAAP book equity of $567.6M. Under liquidation haircuts, the asset side is dominated by near-par instruments: cash and restricted cash of $41.0M (100% recovery), and short-term marketable securities of $337.8M classified as US treasury bills ($250.5M), US treasury bonds ($82.6M), and commercial paper ($4.6M), all Level 2 fair value with unrealized losses of only $163K in aggregate. These instruments are expected to mature through March 2027 and are effectively par recovery. AR of $49.2M at a 90-95% haircut contributes ~$44-47M. Inventory of $46.4M (90% WIP, 9% finished goods, 1% raw materials) recovers at 60% haircut, contributing ~$28M. PP&E net of $2.0M at 50-70% haircut is immaterial. Intangibles net of $3.6M (acquired IP, patents, software) apply 0% recovery. Deferred tax assets net of $166.9M are excluded from liquidation recovery.

On the liability side at face value: current liabilities of $86.6M include accrued expenses of $58.2M (dominated by $34.0M accrued sales rebates/fees and $8.6M accrued payroll), accounts payable of $2.7M, deferred revenue current of $5.0M, finance lease current of $16.5M, and operating lease current of $1.6M. Non-current liabilities of $69.8M include the Monoplant finance lease liability of $48.2M noncurrent (total finance lease $64.7M), deferred revenue noncurrent of $12.4M, operating lease noncurrent of $2.3M, and deferred compensation/other noncurrent of $6.9M. Total face-value liability stack is $156.4M.

Crude liquidation estimate: Cash+investments at ~100% ($378.8M) + AR at 92% (~$45M) + inventory at 60% (~$28M) + PP&E at 60% (~$1.2M) + intangibles at 0% ($0) = ~$453M gross recovery vs. $156.4M liabilities = approximately $297M positive residual to equity, materially better than MFFAIS CLV/LLV of -$96M, which appears to underweight the treasury instrument portfolio or exclude some asset classes. The Monoplant finance lease ($64.7M liability vs. $69.5M ROU asset) does not extinguish at liquidation face value and represents the most concentrated non-cash liability risk.

Key change from prior period (Dec 31, 2025): Total cash/investments declined from $398.0M to $378.8M, driven by $36.8M share repurchases and $14.6M tax withholding payments on equity awards offset by $32.6M operating cash generation. The finance lease liability ($64.7M) is denominated in CHF, creating FX exposure not fully hedged on the balance sheet. A pending Kezar Life Sciences acquisition announced March 30, 2026 for $6.955/share cash plus CVR was disclosed as a subsequent event; this deal had not closed as of the filing date and is not reflected in these balance sheet figures but will consume cash from the current pool if consummated. Filing does not separately disclose the aggregate Kezar acquisition cash consideration in the 10-Q body beyond the per-share price.