Aurinia Reports Third Quarter 2016 Financial Results and Operational Highlights AURA first global clinical trial in lupus nephritis that meets primary and all secondary endpoints AURION 24-week results support the use of

Reports Third Quarter 2016 Financial Results and Operational Highlights

first global clinical trial in lupus nephritis that meets primary and

all secondary endpoints

24-week results support the use of voclosporin for the treatment of

completion of EOP2 meeting with FDA

VICTORIA, British Columbia--(BUSINESS WIRE)--November 4, 2016--Aurinia

Pharmaceuticals Inc. (NASDAQ:AUPH)(TSX:AUP) ("Aurinia" or the "Company")

has released its financial results for the third quarter ended September

30, 2016. Amounts, unless specified otherwise, are expressed in U.S.

Aurinia plans to initiate a single, Phase 3 clinical trial (AURORA)

whose design is consistent with that of the ongoing AURA clinical trial.

The totality of data from both trials will serve as the basis for a New

Drug Application (NDA) submission following completion of the Phase 3

trial, and the Company is focusing its efforts on finalizing the study

protocol and regulatory submissions in parallel with site selection,

making the necessary investments now to ensure the team has the tools to

execute a successful clinical trial.

"We have made exceptional progress over the last few months announcing

the first global clinical trial in LN to meet its primary and all

secondary endpoints," said Charles Rowland, CEO of Aurinia

Pharmaceuticals. "Additionally, the recent selection of the AURA Phase

2b results for late-breaking presentations by the American College of

Rheumatology (ACR) and American Society of Nephrology (ASN) is a

testament to the hard work executed by our world-class clinical team. We

look forward to advancing voclosporin into Phase 3 for the treatment of

LN and pursuing our goal of helping patients living with this

devastating disease."

Operational Highlights

FDA End of Phase 2 Meeting Update

On November 2, 2016, the Company announced its plans for a single Phase

3 clinical trial for voclosporin in the treatment of lupus nephritis

(LN). Pursuant to its recent End of Phase 2 meeting with the U.S. Food &

Drug Administration (FDA) Division of Pulmonary, Allergy and

Rheumatology Products, Aurinia believes this Phase 3 clinical trial

whose design is consistent with the ongoing AURA study, will support a

New Drug Application (NDA) submission. Preparations are underway for the

Phase 3 AURORA trial, which is planned to initiate in Q2 2017.

AURA Phase 2b Clinical Trial Update

On August 15, 2016, the Company announced positive top-line results for

the AURA clinical trial. The trial met its primary endpoint, with

voclosporin 23.7mg BID showing a statistically significant improvement

(p=.045) in complete remission (CR). Each arm of the trial included the

current standard of care of mycophenolate mofetil (MMF) as background

therapy and a forced steroid taper to 5 mg/day by week 8 and 2.5 mg by

week 16. No unexpected safety signals were observed and voclosporin was

shown to be well tolerated.

On September 30, 2016, the Company announced that in addition to

achieving its primary endpoint, voclosporin also met all 24-week

pre-specified secondary endpoints in the Phase 2b AURA clinical trial

AURION Clinical Trial Update

On October 6, 2016 the Company announced results from all 10 patients at

24 weeks of the ongoing open-label AURION clinical trial. In this

clinical trial, 70% (7/10) patients achieved complete remission (CR) at

24 weeks as measured by a urinary protein creatinine ratio (UPCR) of

0.5mg/mg, eGFR within 20% of baseline and concomitant steroid dose of

<5mg/day. Of the 10 patients that achieved a reduction of UPCR of 25%

at 8 weeks, 80% were responders ( 50% reduction in UPCR over baseline)

at 24 weeks and 70% were in CR at 24 weeks. In addition, C3, C4,

anti-dsDNA all continued to normalize to 24 weeks. Voclosporin was

well-tolerated with no unexpected safety signals observed.

Initiation of Phase 1 Japanese Study

The Company has initiated discussions with the Japanese regulatory

authorities to understand their perspective on gaining approval for

voclosporin in their jurisdiction. The Company's goal will be to obtain

their acceptance of the same development plan as reviewed with FDA. To

that end, the Company, in October of 2016, has initiated a Phase 1 study

in healthy Japanese volunteers to permit Japanese sites to potentially

participate in the Phase 3 trial.

The Company expects the following milestones and events for the rest

of 2016 and first half of 2017:

Late breaking presentations at the American College of Rheumatology

(ACR) and the American Society of Nephrology (ASN);

Meetings with European Medicines Agency (EMA) and Pharmaceutical &

Medical Devices Agency, Japan (PMDA);

AURA 48-week secondary endpoint results;

AURION 48-week results;

Initiation of Phase 3 program.

At the Market (ATM) Facility

On July 22, 2016 the Company entered into a Controlled Equity

Offering Sales Agreement with Cantor Fitzgerald & Co. ("Cantor

Fitzgerald") pursuant to which the Company was able to, from time to

time, sell common shares through at-the-market ("ATM") offerings with

Cantor Fitzgerald acting as sales agent.

As of October 3, 2016, sales pursuant to the ATM were concluded. The

Company issued 3.3 million common shares, receiving gross proceeds of $8

million ($6.1 million in the third quarter of 2016 and $1.9 million

subsequent to the quarter end) which was the maximum allowable pursuant

to the limit imposed by Toronto Stock Exchange rules.

Financial Results for the Third Quarter Ended September 30, 2016

The Company had cash, cash equivalents and short term investments of

$15.4 million at September 30, 2016 compared to $12.1 million at June

30, 2016 and $15.8 million at December 31, 2015. Net cash used in

operating activities was $5.0 million for the third quarter ended

September 30, 2016. The Company generated $7.4 million from financing

activities during the quarter resulting from net proceeds of $5.7

million received from the issue of common shares pursuant to the ATM

facility and $1.7 million from warrant and option exercises in the third

For the third quarter ended September 30, 2016, the Company reported a

consolidated net loss of $7.4 million or $0.21 per common share, as