<SEC-DOCUMENT>0001157523-17-003100.txt : 20171114
<SEC-HEADER>0001157523-17-003100.hdr.sgml : 20171114
<ACCEPTANCE-DATETIME>20171114160212
ACCESSION NUMBER:		0001157523-17-003100
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20171114
FILED AS OF DATE:		20171114
DATE AS OF CHANGE:		20171114

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Aurinia Pharmaceuticals Inc.
		CENTRAL INDEX KEY:			0001600620
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36421
		FILM NUMBER:		171201337

	BUSINESS ADDRESS:	
		STREET 1:		#1203-4464 MARKHAM STREET
		CITY:			VICTORIA BC
		STATE:			A1
		ZIP:			V8Z 7X8
		BUSINESS PHONE:		250-708-4272

	MAIL ADDRESS:	
		STREET 1:		#1203-4464 MARKHAM STREET
		CITY:			VICTORIA BC
		STATE:			A1
		ZIP:			V8Z 7X8
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>a51715104.htm
<DESCRIPTION>AURINIA PHARMACEUTICALS INC. 6-K
<TEXT>
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    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 16pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 16pt; font-family: Times New Roman"><br style="font-size: 16pt; font-family: Times New Roman"></font><font style="font-size: 16pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font>
    </p>
    <hr style="color: #000000; text-align: center; width: 100%; height: 1.0 pt">


    <p style="text-align: center">
      <font style="font-size: 14pt; font-family: Times New Roman"><b>FORM 6-K</b></font>
    </p>
    <hr style="color: #000000; text-align: center; width: 100%; height: 1.0 pt">


    <p style="text-align: center">
      <font style="font-family: Times New Roman"><b>&#160;</b></font><b><font style="font-size: 12pt; font-family: Times New Roman">REPORT
      OF FOREIGN PRIVATE ISSUER</font></b><br><font style="font-size: 12pt; font-family: Times New Roman"><b>PURSUANT
      TO RULE 13A-16 OR 15D-16 UNDER THE</b></font><br><font style="font-size: 12pt; font-family: Times New Roman"><b>SECURITIES
      EXCHANGE ACT OF 1934</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Dated</b></font><font style="font-size: 10pt; font-family: Times New Roman">
      </font><font style="font-size: 10pt; font-family: Times New Roman"><b>November
      14, 2017</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Commission
      File Number</b></font><b> 001-36421</b>
    </p>
    <hr style="color: #000000; text-align: center; width: 100%; height: 1.0 pt">


    <p style="text-align: center">
      <font style="font-size: 24pt"><b>AURINIA PHARMACEUTICALS INC.</b></font><br><b>(Exact
      name of Registrant as specified in its charter)</b><br>
    </p>
    <hr style="color: #000000; text-align: center; width: 100%; height: 1.0 pt">


    <p style="text-align: center">
      <b>N/A</b><br><b>(Translation of Registrant&#8217;s Name)</b><br><br>
    </p>
    <p style="text-align: center">
      <b>#1203-4464 Markham Street</b><br><b>Victoria, British Columbia</b><br><b>V8Z7X8</b><br><b>(250)
      708-4272</b><br><b>(Address and telephone number of registrant&#8217;s
      principal executive offices)</b>
    </p>
    <hr style="color: #000000; text-align: center; width: 100%; height: 1.0 pt">


    <p style="text-indent: 30.0px; text-align: left">
      <font style="font-size: 10pt; font-family: Times New Roman">Indicate by
      check mark whether the registrant files or will file annual reports
      under cover of Form 20-F or Form 40-F.</font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">Form 20-F &#160;</font><font style="font-size: 12pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt; font-family: Times New Roman">
      &#160;&#160;&#160;&#160;Form 40-F&#160; </font><font style="font-size: 12pt; font-family: Arial Unicode MS">&#8864;</font>
    </p>
    <p style="text-indent: 30.0px; text-align: left">
      <font style="font-size: 10pt; font-family: Times New Roman">Indicate by
      check mark if the registrant is submitting the Form 6-K in paper as
      permitted by Regulation S-T Rule 101(b)(1):&#160;</font><font style="font-size: 12pt; font-family: Arial Unicode MS">&#8414;</font>
    </p>
    <p style="text-indent: 30.0px; text-align: left">
      <font style="font-size: 10pt; font-family: Times New Roman">Indicate by
      check mark if the registrant is submitting the Form 6-K in paper as
      permitted by Regulation S-T Rule 101(b)(7):&#160;</font><font style="font-size: 12pt; font-family: Arial Unicode MS">&#8414;</font>
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      <font style="font-size: 10pt; font-family: Times New Roman">Indicate by
      check mark whether by furnishing the information contained in this Form,
      the registrant is also thereby furnishing the information to the
      Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
      of 1934.</font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">Yes &#160;</font><font style="font-size: 12pt; font-family: Arial Unicode MS">&#8864;</font><font style="font-size: 12pt">&#160;&#160;&#160;&#160;</font><font style="font-size: 10pt; font-family: Times New Roman">
      No &#160;</font><font style="font-size: 12pt; font-family: Arial Unicode MS">&#8414;</font>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      This Form 6-K is hereby filed and incorporated by reference into the
      Registrant&#8217;s Registration Statement on Form F-10 (File No. 333-206994).
    </p>
    <p style="text-indent: 60.0px">

    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned, thereunto duly authorized.</font>
    </p>
    <p style="text-indent: 30.0px">

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            November 14, 2017
          </p>
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Aurinia Pharmaceuticals Inc.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 4%" valign="top">
          By:
        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt" valign="top" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Dennis Bourgeault
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 4%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 7%" valign="top">
          Name:
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 39%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dennis Bourgeault
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 4%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 7%" valign="top">
          Title:
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 39%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

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      </div>
      <div style="page-break-after: always">
        <div style="font-family: Times New Roman; text-align: center; font-size: 10pt">
          2
        </div>
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          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <b>EXHIBIT&#160;INDEX</b>
    </p>
    <p style="text-align: center">

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 8%; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Exhibit</b>
          </p>
        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 5%" valign="bottom">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 87%; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Description of Exhibit</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 8%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 87%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: left; width: 8%; white-space: nowrap" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <a href="a51715104_ex991.htm">99.1</a>
          </p>
        </td>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 87%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <a href="a51715104_ex991.htm">News Release - Aurinia Reports Third
            Quarter 2017 Financial Results and Provides Operational Highlights</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      Exhibit 99.1 included with this report on Form 6-K is hereby
      incorporated by reference as exhibits to the Registration Statement on
      Form F-10 of Aurinia Pharmaceuticals Inc. (File No. 333-206994), as
      amended or supplemented.
    </p>
    <p>
      <br>

    </p>
    <p style="text-align: center">
      3
    </p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51715104_ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
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    <title></title>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Aurinia
      Reports Third Quarter 2017 Financial Results and Provides Operational
      Highlights</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>AURORA
      Phase III Trial in lupus nephritis on track</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Trials in
      FSGS, MCD and Dry Eye to begin in the first half of 2018</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Cash of
      $182.4 million as of September 30, 2017</b></font>
    </p>
    <p>
      VICTORIA, British Columbia--(BUSINESS WIRE)--November 14, 2017--Aurinia
      Pharmaceuticals Inc. (NASDAQ:AUPH) (TSX:AUP) (&#8220;Aurinia&#8221; or the
      &#8220;Company&#8221;) has released its financial results for the third quarter
      ended September 30, 2017. Amounts, unless specified otherwise, are
      expressed in U.S. dollars.
    </p>
    <p>
      <b>Operational highlights</b>
    </p>
    <p>
      On October 20, 2017 we announced plans to expand our renal franchise by
      investigating voclosporin in focal segmental glomerulosclerosis (FSGS)
      and minimal change disease (MCD). Additionally, we announced plans to
      evaluate our proprietary nanomicellar voclosporin ophthalmic solution
      (VOS) for the treatment of keratoconjunctivitis sicca or dry eye
      syndrome (DES). The advancement of these new indications, in addition to
      lupus nephritis (LN), represents an expansion of the company&#8217;s strategy,
      pipeline and commercial opportunities.
    </p>
    <p>
      A Phase II proof of concept clinical trial for voclosporin in FSGS and
      MCD patients will be initiated in the first half of 2018. FSGS and MCD
      affect nearly 150,000 patients globally, accounting for almost 50% of
      patients with Nephrotic Syndrome (NS). The prevalence of FSGS and MCD is
      increasing through improved diagnosis, and it has been shown that the
      control of proteinuria is important for long-term survival of these
      patients. Interim data readouts are anticipated in the second half of
      2018.
    </p>
    <p>
      We also plan to begin a Phase IIa tolerability study of VOS versus the
      standard of care for the treatment of DES by the second quarter of 2018,
      with data available in the second half of 2018. Calcineurin inhibitors
      (CNIs) are a mainstay in the treatment for DES, and the goal of this
      program is to develop a best-in-class treatment option.
    </p>
    <p>
      Our Phase III clinical trial (AURORA) for the treatment of LN is on
      track to complete enrollment in the second half of 2018, with 138
      clinical trial sites active around the globe. Additionally, under
      voclosporin&#8217;s fast-track designation, we intend to utilize a rolling New
      Drug Application (NDA) process, with the first module being submitted in
      the second half of 2018.
    </p>
    <p>
      &#8220;With the AURORA trial in LN on track to complete enrollment in the
      second half of 2018, we&#8217;re thrilled to enter this exciting next phase of
      development for Aurinia,&quot; said Richard Glickman, L.L.D., CEO and
      Chairman of Aurinia Pharmaceuticals. &#8220;By expanding our renal franchise
      and launching a development program in dry eye, we have the potential to
      create significant value for shareholders.&#8221;
    </p>
    <p>
      <b>Financial Results for the Third Quarter Ended September 30, 2017</b>
    </p>
    <p>
      Cash, cash equivalents and short term investments were $182.4 million as
      at September 30, 2017 compared to $189.8 million as of June 30, 2017,
      and $39.6 million as at December 31, 2016. We believe, based on our
      current plans, that we have sufficient financial resources to fund our
      existing LN program, including the AURORA trial, conduct work on the new
      indications and fund operations into 2020.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      For the three months ended September 30, 2017, we reported a
      consolidated net loss of $13.1 million or $0.16 per common share
      compared to a consolidated net loss of $7.4 million or $0.21 per common
      share for the three months ended September 30, 2016.
    </p>
    <p>
      We incurred research and development expenses of $10.8 million for the
      three months ended September 30, 2017, as compared to $3.3 million for
      the same period in 2016. The increase in research and development
      expenses for the three months ended September 30, 2017 reflected AURORA
      clinical expenses such as contract research organization (CRO) service
      fees and pass thru costs for activities including site activations,
      regulatory submissions, patient treatment and drug costs for manufacture
      of voclosporin drug product, and drug encapsulation, packaging and
      distribution for the trial.
    </p>
    <p>
      We incurred corporate, administration and business development costs of
      $2.6 million for the three months ended September 30, 2017, as compared
      with $1.7 million for the same period in 2016. These costs included a
      non-cash stock compensation expense of $795,000 for the three months
      ended September 30, 2017 compared to $469,000 for the three months ended
      September 30, 2016.
    </p>
    <p>
      This press release should be read in conjunction with our unaudited
      interim condensed consolidated financial statements and the MD&amp;A for the
      third quarter ended September 30, 2017 which are accessible on Aurinia's
      website at <u>www.auriniapharma.com</u>, on SEDAR at <u>www.sedar.com</u>
      or on EDGAR at <u>www.sec.gov/edgar</u>.
    </p>
    <p>
      <b>About Aurinia</b>
    </p>
    <p>
      Aurinia is a clinical stage biopharmaceutical company focused on
      developing and commercializing therapies to treat targeted patient
      populations that are suffering from serious diseases with a high unmet
      medical need. The company is currently developing voclosporin, an
      investigational drug, for the treatment of LN, FSGS, MCD and DES. The
      company is headquartered in Victoria, BC and focuses its development
      efforts globally.
    </p>
    <p>
      <b>About FSGS, MCD and NS</b>
    </p>
    <p>
      NS is a collection of symptoms that indicate kidney damage, including:
      large amounts of protein in urine; low levels of albumin and higher than
      normal fat and cholesterol levels in the blood, and edema. Similar to
      LN, early clinical response and reduction of proteinuria is thought to
      be critical to long-term kidney health. Aurinia is focused specifically
      on FSGS, a lesion characterized by persistent scarring identified by
      biopsy and proteinuria and on MCD, a kidney disease in which large
      amounts of protein are lost in the urine. FSGS and MCD both are causes
      of NS and characterized by high morbidity. Currently, there are no
      approved therapies for FSGS and MCD in the United States and the
      European Union.
    </p>
    <p>
      <b>About DES</b>
    </p>
    <p>
      DES, or keratoconjunctivitis sicca, is a chronic disease in which a lack
      of moisture and lubrication on the eye&#8217;s surface results in irritation
      and inflammation of the eye. DES is a multifactorial, heterogeneous
      disease estimated to affect greater than 20 million people in the United
      States.
    </p>
    <p>
      <b>About LN</b>
    </p>
    <p>
      LN in an inflammation of the kidney caused by Systemic Lupus
      Erythematosus (SLE) and represents a serious progression of SLE. SLE is
      a chronic, complex and often disabling disorder and affects more than
      500,000 people in the United States (mostly women). The disease is
      highly heterogeneous, affecting a wide range of organs &amp; tissue systems.
      It is estimated that as many as 60 percent of all SLE patients will
      develop clinical LN requiring treatment. Unlike SLE, LN has
      straightforward disease outcomes (measuring proteinuria) where an early
      response correlates with long-term outcomes. In patients with LN, renal
      damage results in proteinuria and/or hematuria and a decrease in renal
      function as evidenced by reduced estimated glomerular filtration rate
      (eGFR), and increased serum creatinine levels. LN is debilitating and
      costly and if poorly controlled, LN can lead to permanent and
      irreversible tissue damage within the kidney, resulting in end-stage
      renal disease (ESRD), thus making LN a serious and potentially
      life-threatening condition.
    </p>
    <p>
      <b>About Voclosporin</b>
    </p>
    <p>
      Voclosporin, an investigational drug, is a novel and potentially
      best-in-class CNI with clinical data in over 2,400 patients across
      indications. Voclosporin is an immunosuppressant, with a synergistic and
      dual mechanism of action. By inhibiting calcineurin, voclosporin blocks
      IL-2 expression and T-cell mediated immune responses, and stabilizes the
      podocyte in the kidney. It has been shown to have a more predictable
      pharmacokinetic and pharmacodynamic relationship, an increase in
      potency, an altered metabolic profile and potential for flat dosing
      compared to legacy CNIs. Aurinia anticipates that upon regulatory
      approval, patent protection for voclosporin will be extended in the
      United States and certain other major markets, including Europe and
      Japan, until at least October 2027 under the Hatch-Waxman Act and
      comparable laws in other countries and until April 2028 with anticipated
      pediatric extension.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>About VOS</b>
    </p>
    <p>
      VOS is an aqueous, preservative free nanomicellar solution containing
      0.2% voclosporin intended for use in the treatment of DES. Studies have
      been completed in rabbit and dog models, and a single<b> </b>Phase I has
      also been completed in healthy volunteers and patients with DES. VOS has
      IP protection until 2031. In April 2017, Aurinia announced an agreement
      granting Merck Animal Health (MAH) worldwide rights to develop and
      commercialize (VOS) for the treatment of DES in dogs. MAH previously
      conducted proof of concept research in dogs suffering from DES, which
      affects one out of every 22 dogs.
    </p>
    <p>
      <i><b>Forward-Looking Statements</b></i>
    </p>
    <p>
      Certain statements made in this press release may constitute
      forward-looking information within the meaning of applicable Canadian
      securities law and forward-looking statements within the meaning of
      applicable United States securities law. These forward-looking
      statements or information include, but are not limited to statements or
      information with respect to: AURORA being on track to complete
      enrollment in the second half of 2018, the timing voclosporin being
      potentially a best-in-class CNI with robust intellectual property
      exclusivity; the timing for Aurinia initiating a Phase II clinical trial
      for voclosporin in FSGS and MCD patients; the timing for interim data
      readouts for the Phase II clinical trial for FSGS and MCD patients; the
      timing for commencement of a Phase IIa tolerability study of VOS; the
      timing for data availability for the Phase IIa tolerability study; the
      anticipated commercial potential of voclosporin for the treatment of LN,
      NS, FSGS, DES and other autoimmune diseases; that the expansion of the
      renal franchise could create significant value for shareholders and that
      Aurinia has sufficient financial resources to fund the existing LN
      program, including the AURORA trial, conduct work on the new indications
      and fund operations into 2020. It is possible that such results or
      conclusions may change based on further analyses of these data Words
      such as &#8220;anticipate&#8221;, &#8220;will&#8221;, &#8220;believe&#8221;, &#8220;estimate&#8221;, &#8220;expect&#8221;, &#8220;intend&#8221;,
      &#8220;target&#8221;, &#8220;plan&#8221;, &#8220;goals&#8221;, &#8220;objectives&#8221;, &#8220;may&#8221; and other similar words
      and expressions, identify forward-looking statements. We have made
      numerous assumptions about the forward-looking statements and
      information contained herein, including among other things, assumptions
      about: the market value for the LN program; that another company will
      not create a substantial competitive product for Aurinia&#8217;s LN business
      without violating Aurinia&#8217;s intellectual property rights; the burn rate
      of Aurinia&#8217;s cash for operations; the costs and expenses associated with
      Aurinia&#8217;s clinical trials; the planned studies achieving positive
      results; Aurinia being able to extend its patents on terms acceptable to
      Aurinia; and the size of the LN market. Even though the management of
      Aurinia believes that the assumptions made and the expectations
      represented by such statements or information are reasonable, there can
      be no assurance that the forward-looking information will prove to be
      accurate.
    </p>
    <p>
      Forward-looking information by their nature are based on assumptions and
      involve known and unknown risks, uncertainties and other factors which
      may cause the actual results, performance or achievements of Aurinia to
      be materially different from any future results, performance or
      achievements expressed or implied by such forward-looking information.
      Should one or more of these risks and uncertainties materialize, or
      should underlying assumptions prove incorrect, actual results may vary
      materially from those described in forward-looking statements or
      information. Such risks, uncertainties and other factors include, among
      others, the following: difficulties, delays, or failures we may
      experience in the conduct of our planned AURORA clinical trial;
      difficulties we may experience in completing the development and
      commercialization of voclosporin; the market for the LN business may not
      be as estimated; Aurinia may have to pay unanticipated expenses;
      estimated costs for clinical trials may be underestimated, resulting in
      Aurinia having to make additional expenditures to achieve its current
      goals; Aurinia not being able to extend its patent portfolio for
      voclosporin; and competitors may arise with similar products. Although
      we have attempted to identify factors that would cause actual actions,
      events or results to differ materially from those described in
      forward-looking statements and information, there may be other factors
      that cause actual results, performances, achievements or events to not
      be as anticipated, estimated or intended. Also many of the factors are
      beyond our control. There can be no assurance that forward-looking
      statements or information will prove to be accurate, as actual results
      and future events could differ materially from those anticipated in such
      statements. Accordingly you should not place undue reliance on
      forward-looking statements or information.
    </p>
    <p>
      Except as required by law, Aurinia will not update forward-looking
      information. All forward-looking information contained in this press
      release is qualified by this cautionary statement. Additional
      information related to Aurinia, including a detailed list of the risks
      and uncertainties affecting Aurinia and its business can be found in
      Aurinia&#8217;s most recent Annual Information Form available by accessing the
      Canadian Securities Administrators&#8217; System for Electronic Document
      Analysis and Retrieval (SEDAR) website at <u>www.sedar.com</u> or the
      U.S. Securities and Exchange Commission&#8217;s Electronic Document Gathering
      and Retrieval System (EDGAR) website at <u>www.sec.gov/edgar</u>.
    </p>
    <p>
      <i>We seek Safe Harbor</i>.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt">
      <tr>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="5">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Aurinia Pharmaceuticals Inc.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="5">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Interim Condensed Balance Sheet <i>(Unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="5">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(Expressed in thousands of U.S. dollars, except per share data)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b><br><b>2017</b><br><b>$</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>December 31,</b><br><b>2016</b><br><b>$</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Current assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          87,546
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          39,649
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Short term investments
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          94,860
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Accrued interest and other receivables
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          415
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          86
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Prepaid expenses, deposits and other
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          2,064
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          1,683
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          184,885
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          41,418
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Clinical trial contract deposits</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          448
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Property and equipment</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          27
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          29
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <b>Acquired intellectual property and other intangible assets</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          14,472
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          15,550
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          199,832
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          56,997
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Liabilities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Current liabilities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Accounts payable and accrued liabilities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          6,665
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          5,791
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current portion of deferred revenue
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          118
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          118
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <b>Contingent consideration</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          72
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          2,021
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          6,855
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          7,930
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Deferred revenue</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          472
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          560
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Contingent consideration</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          3,654
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          3,419
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <b>Derivative warrant liabilities</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          21,207
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          9,138
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          32,188
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          21,047
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Shareholders&#8217; equity</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Share capital</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Common shares
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          498,698
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          299,815
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Warrants
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          906
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          971
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Contributed surplus</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          17,442
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          17,017
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Accumulated other comprehensive loss</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          (894)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          (805)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <b>Deficit</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (348,508)
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (281,048)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          167,644
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          35,950
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          199,832
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          56,997
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt">
      <tr>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="5">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Aurinia Pharmaceuticals Inc.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="5">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Interim Condensed Statements of Operations and Comprehensive Loss <i>(Unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="5">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(Expressed in thousands of U.S. dollars, except per share data)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom" colspan="3">
          <b>Three months ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b><br><b>2017</b><br><b>$</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>September 30,</b><br><b>2016</b><br><b>$</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Revenue</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Licensing revenue
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          29
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          29
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Contract services
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          -
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          2
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          29
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          31
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Expenses</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Research and development
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          10,807
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          3,342
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Corporate, administration and business development
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          2,650
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          1,716
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Amortization of acquired intellectual property and other intangible
          assets
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          357
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          357
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Amortization of property and equipment
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          5
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          5
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Contract services
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          1
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Other expense (income)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (315)
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          1,078
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          13,504
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          6,499
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Net loss before change in estimated fair value of derivative
          warrant liabilities</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (13,475)
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; white-space: nowrap" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (6,468)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Change in estimated fair value of derivative warrant liabilities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            355
          </p>
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (951)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <b>Net loss for the period</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (13,120)
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (7,419)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Other comprehensive income (loss)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Item that may be reclassified subsequently to income (loss)
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Net change in fair value of short term investments
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (89)
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <b>Net comprehensive loss for the period</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (13,209)
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (7,419)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>Net loss per common share</b> (expressed in $ per share)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Basic and diluted loss per common share
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (0.16)
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; padding-right: 0.0px; text-align: right; border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt; white-space: nowrap" valign="bottom">
          (0.21)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br><b>Aurinia Pharmaceuticals Inc.</b><br><b>Investors &amp; Media:</b><br>Celia
      Economides<br>Head of IR &amp; Communications<br><u>ceconomides@auriniapharma.com</u><br>or<br><b>Chief
      Financial Officer:</b><br>Dennis Bourgeault<br><u>dbourgeault@auriniapharma.com</u>
    </p>
    <p>

    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
