Mr. Richard Glickman reports

AURINIA INITIATES PHASE 2 CLINICAL TRIAL FOR VOCLOSPORIN OPHTHALMIC SOLUTION FOR THE TREATMENT OF DRY EYE SYNDROME

Aurinia Pharmaceuticals Inc. has begun its phase 2 clinical trial for voclosporin ophthalmic solution (VOS) in the treatment of dry eye syndrome (DES).

VOS, which is a proprietary nanomicellar formulation, enables high concentrations of voclosporin to be incorporated into a clear aqueous, preservative-free solution for local delivery to the ocular surface. This patented formulation has the potential to result in improved efficacy, dosing frequency and tolerability, compared with the current treatments for DES.

This phase 2 study is evaluating the ocular tolerability of VOS 0.2 per cent versus Restasis (cyclosporine ophthalmic emulsion 0.05 per cent) at four weeks in subjects with mild to moderate DES. This robust head-to-head trial is recruiting 90 patients in sites across the United States. The study is expected to complete at the end of 2018. Key secondary end points include Ocular Surface Disease Index (OSDI), System Assessment in Dry Eye (SANDE), Individual Symptom Severity Assessments and Drop Discomfort Visual Analog Scale (VAS) scores, Fluorescein Corneal Staining (FCS) and Schirmer Tear Test (STT).

"Topical calcineurin inhibition is thought to be a mainstay of treatment for dry eye and based on its unique profile, we believe that VOS has the potential to compete in the multibillion-dollar prescription dry eye market," said Richard Glickman, Aurinia's chairman and chief executive officer. "Our goal with this program is to develop a best-in-class treatment option and, upon completion, we will look to evaluate strategic alternatives for this asset."

VOS has demonstrated safety and tolerability in a human phase 1b study, supporting its development for the treatment of DES. It has also previously shown evidence of efficacy in canine studies, which are being conducted by Merck Animal Health.

About Aurinia Pharmaceuticals Inc.

Aurinia Pharmaceuticals 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 potential treatment of lupus nephritis, focal segmental glomerulosclerosis and dry eye syndrome. The company is headquartered in Victoria, B.C., and focuses its development efforts globally.

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