Full Press Release Details
Issues Letter to Shareholders
the Company's strong progress, advancement of voclosporin, and value
creation for all shareholders
recent Board refreshment, deep expertise in drug commercialization
ILJIN has offered no plan for value creation
ILJIN's misrepresentations; notes dissident rejected efforts to
negotiate in good faith
shareholders vote the YELLOW proxy "FOR" all of Aurinia's highly
VICTORIA, British Columbia--(BUSINESS WIRE)--June 7, 2019--Aurinia
Pharmaceuticals Inc. (NASDAQ:AUPH / TSX:AUP) (the "Company")
today sent a letter to shareholders in connection with the Company's
upcoming Annual General Meeting of Shareholders ("AGM") to be held on
Wednesday, June 26, 2019. Shareholders of record as of May 9, 2019 must
submit their YELLOW proxy by 10:00 AM Mountain Time on Monday, June 24,
The Company highlighted the following in its letter to shareholders:
Aurinia's dramatic progress since re-initiating the development of
voclosporin in 2013 demonstrates the effectiveness and strategic focus
of the Company's management team and Board of Directors.
The Company is well positioned for continued growth, having quickly
evolved into a well-capitalized, late-stage clinical development
company with multiple indications, and is preparing for the
commercialization of voclosporin in early 2021.
ILJIN, a conglomerate engineering company based in South Korea which
already has a representative on Aurinia's Board, is seeking to appoint
three additional Directors representing 37.5% board control. This
level of Board representation far exceeds its less than 15% ownership
ILJIN has offered no alternative strategy for value creation or
actionable insights.
ILJIN's nominees' lack of experience in commercialization and the U.S.
pharmaceutical market would impede the Company's continued progress.
Vote using only the YELLOW proxy to support Aurinia and its continued
growth. Shareholders are encouraged to vote the YELLOW proxy well in
advance of the deadline on June 24, 2019 at 10:00 AM Mountain Time.
Shareholders with questions or requests for voting assistance may be
directed to Laurel Hill Advisory Group at 1-877-452-7184 toll free
(1-416-304-0211 collect), or by email to assistance@laurelhill.com.
A copy of the letter is available at Aurinia's website of www.auriniapharma.com/agm-materials,
on EDGAR at www.sec.gov/edgar and on SEDAR at www.sedar.com.
The full text of Aurinia's letter to shareholders follows:
You are facing an important decision regarding the future value of your
investment in Aurinia Pharmaceuticals ("Aurinia" or the "Company").
ILJIN SNT Co., Ltd. ("ILJIN"), a South Korea-based company, is seeking
to place three of its nominees on Aurinia's Board of Directors (the
"Board"). In addition to failing to provide an alternative strategy for
value creation, the dissident has made a series of misleading claims in
an attempt to gain representation on the Company's Board far in excess
We strongly believe that adding ILJIN's nominees would impede the
significant progress we have made in recent years and disrupt Aurinia's
strong momentum as we approach critical milestones.
AURINIA HAS MADE STRONG PROGRESS TO DATE AND IS WELL POSITIONED FOR
In the past several years, we have transformed from an early-stage
clinical company with one indication to a late-stage clinical
development company with multiple indications. We remain keenly focused
on unlocking further shareholder value as we prepare for the
commercialization of voclosporin.
Voclosporin is a next-generation immunosuppressant compound that has
been extensively studied in over 2,600 subjects and aims to address the
significant unmet medical needs of patients suffering from lupus
nephritis ("LN"), focal segmental glomerulosclerosis ("FSGS"), and dry
eye syndrome ("DES").
We continue to take a prudent and disciplined approach to stewarding
voclosporin through the Phase 3 AURORA clinical trial for the treatment
of LN and are targeting a commercial launch date of early 2021.
Additionally, we are advancing voclosporin ophthalmic solution ("VOS"),
a topical formulation, for the treatment of DES, which affects
approximately 16 million people in the United States alone1.
Building upon the recently reported results for VOS, we are actively
preparing to launch Phase 2/3 clinical development by the end of 2019.
Critical for a late-stage clinical development company approaching
commercialization, we have maintained a strong balance sheet, with
approximately $144.3 million USD as of March 31, 2019.
Our progress is creating long-term value for our shareholders.
Underscoring just how misleading ILJIN's attacks on our performance are,
since Aurinia's rebrand and public market listing in 2013, our share
price has performed well above the TSX and Nasdaq biotech indices.
Furthermore, Aurinia has delivered strong annualized total shareholder
returns relative to relevant indices and the broader market.
| Average Annualized Total Shareholder Returns | One-Year | Three-Year | Five-Year | |||
| Aurinia Pharmaceuticals Inc. (AUPH:US) | 20.1% | 40.9% | 21.0% | |||
| S&P/TSX Capped Health Care Index (^TTHC) | 31.4% | 8.6% | 5.7% | |||
| S&P/TSX Composite Index (^TSX) | 0.7% | 5.2% | 2.0% | |||
| NASDAQ Composite Index (^COMPX:US) | 2.9% | 16.3% | 12.8% |
Today, we are transitioning through several important milestones, and we
expect our share price to ultimately reflect the value we are creating
for shareholders. Aurinia has strong forward momentum and the right
strategy in place to enhance value for all shareholders.
AURINIA IS COMMITTED TO STRONG GOVERNANCE
We are committed to implementing robust governance practices that best
support long-term value creation for all our shareholders. To this end,
we have consistently pursued thoughtful and responsible compensation
practices that align our management's interests with those of our
shareholders. Our Compensation Committee consists entirely of
independent Directors - including Dr. Hyuek Joon Lee, ILJIN's
representative on our Board - and undertakes a deliberate process
involving well-established and experienced outside consultants to
develop compensation packages that incentivize long-term value creation.
Contrary to ILJIN's misleading claims, the salaries for our named
executive officers ("NEOs") are generally in the bottom 25th
percentile of our 2019 compensation peer group. Furthermore, total
compensation packages (including bonuses and equity compensation) for
our NEOs are approximately at the 50th percentile of our peer
Our continuous efforts to refresh our Board further reflect our
commitment to strong governance. Five of our eight Directors have joined
the Board since 2016, bringing fresh perspectives and extensive