GENEVA--(BUSINESS WIRE)--Lucien Selce, who owns approximately 2.2% of the outstanding shares of Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) (“Aurinia” or the “Company”), today issued the below open letter to the Board of Directors (the “Board”) regarding the urgent need for accountability and boardroom changes..

日内瓦--（商业新闻短讯）--拥有Aurinia Pharmaceuticals Inc.（纳斯达克：AUPH）（“Aurinia”或“公司”）约2.2%已发行股份的Lucien Selce今天向董事会（“董事会”）发布了以下公开信，内容涉及迫切需要问责和董事会变更。。

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August 13, 2024

2024年8月13日

Aurinia Pharmaceuticals Inc.

Aurinia Pharmaceuticals股份有限公司。

#140, 14315 – 118 Avenue

#140、14315–118大道

Edmonton, AB T5L 4S6

埃德蒙顿，AB T5L 4S6

Canada

加拿大

Attention: The Board of Directors

收件人：董事会

Members of the Board,

董事会成员，

Over the past few months, I have expressed my concerns regarding the Company’s current strategy and trajectory due to the Board’s lack of appropriate oversight and relevant skillsets. Recent developments following the 2024 Annual General Meeting (the “AGM”) have made clear that current leadership has no interest in acting in shareholders’ best interests and in protecting the future of the Company..

在过去的几个月里，由于董事会缺乏适当的监督和相关技能，我对公司目前的战略和发展轨迹表示了担忧。2024年年度股东大会（“AGM”）之后的最新发展表明，现任领导层无意为股东的最佳利益行事，也无意保护公司的未来。。

The fact that four of the nine directors up for re-election at the 2024 AGM, including CEO Peter Greenleaf, failed to secure a majority of the votes speaks volumes about the need for boardroom change and a new strategy for value creation.1 The current state of affairs at Aurinia – marked by unchecked spending, ineffective leadership, and a clear lack of strategic direction – demands immediate and decisive action..

2024年年度股东大会（AGM）将连任的9名董事中，包括首席执行官彼得·格林利夫（PeterGreenleaf）在内的4名董事未能获得大多数选票，这一事实充分说明了董事会需要变革和新的价值创造战略。1 Aurinia目前的状况——其特点是支出不受控制、领导不力以及明显缺乏战略方向——需要立即采取果断行动。。

Aurinia Has Spent Excessive Capital Without Focusing on Research and Development (“R&D”)

Aurinia在没有专注于研发（“R＆D”）的情况下花费了过多的资金

The Company has recklessly spent $100 million in just six months, yet there has been little to no investment in R&D, which is the cornerstone of Aurinia’s future growth. This irresponsible financial management is unacceptable. Aurinia should be operated efficiently with a budget of $70 million – not $150 million.

该公司在短短六个月内不计后果地花费了一亿美元，但在研发方面几乎没有投资，而研发是Aurinia未来增长的基石。这种不负责任的财务管理是不可接受的。Aurinia应该有效运作，预算为7000万美元，而不是1.5亿美元。

The current financial strategy is unsustainable and detrimental to shareholder value..

当前的财务战略不可持续，不利于股东价值。。

Management Continues to Pursue an Ineffective Strategy

管理层继续追求无效的战略

In February 2024, the Company publicly announced the discontinuation of AUR200. Then, during the Q2 2024 earnings call, Mr. Greenleaf reversed this decision, stating that its development had resumed. This inconsistency not only undermines the credibility of the Company’s leadership, but also raises serious concerns about transparency with the market..

2024年2月，该公司公开宣布停止使用AUR200。然后，在2024年第二季度财报电话会议上，格林利夫先生推翻了这一决定，称其发展已经恢复。这种不一致不仅损害了公司领导层的可信度，而且引发了人们对市场透明度的严重担忧。。

Moreover, during the same earnings call, it was openly acknowledged that the Company struggled to achieve the expected sales of LUPKYNIS. In addition, ADALVO (a generic drug manufacturer) has come up with a Voclosporin-based product, akin to a generic version of LUPKYNIS. This development, which could upset the Company’s competitive position, was not even discussed by management..

此外，在同一次财报电话会议上，公开承认该公司难以实现LUPKYNIS的预期销售额。此外，阿达尔沃（仿制药制造商）已经推出了一种基于Voclosporin的产品，类似于LUPKYNIS的仿制药版本。管理层甚至没有讨论这一可能扰乱公司竞争地位的发展。。

Leadership Has a Track Record of Ignoring Shareholders’ Interests

领导层有忽视股东利益的记录

Despite announcing a $150 million share repurchase program in February 2024, only $18 million has been spent over the last six months, even as the Company continues to trade at rock bottom levels. This lack of action is a missed opportunity to support the share price and demonstrates poor judgment by leadership..

尽管在2024年2月宣布了1.5亿美元的股票回购计划，但在过去六个月里，该公司仅花费了1800万美元，尽管该公司的交易仍处于最低水平。缺乏行动是错失了支撑股价的机会，也表明领导层判断不佳。。

After being voted out at the recent AGM, Mr. Greenleaf and three other directors remain in their positions. The Board’s failure to accept conditional director resignations and Mr. Greenleaf’s avoidance of this topic during the latest earnings call demonstrate a blatant disregard for shareholders’ votes and sound governance..

在最近的年度股东大会上被投票淘汰后，格林利夫先生和其他三名董事仍然在任。董事会未能接受有条件的董事辞职，格林利夫先生在最近的收益电话会议中回避了这个话题，这表明他公然无视股东投票和良好的治理。。

The issues outlined above highlight the urgent need for effective oversight and changes to the composition of the Board. In my view, the only way the Company can improve its trajectory and begin creating value for shareholders is by taking the below steps:

上述问题突出表明，迫切需要对董事会的组成进行有效监督和改变。在我看来，公司改善发展轨迹并开始为股东创造价值的唯一途径是采取以下步骤：

Dr. Brinda Balakrishnan, Dr. Robert T. Foster, and Mr. Greenleaf should each submit their immediate firm (not provisional) resignations, as they have failed in their respective roles. At the 2024 AGM, 52.5% of shareholders withheld support for Dr. Balakrishnan, 51.8% withheld support for Mr. Greenleaf, and Dr.

布林达·巴拉克里希南（BrindaBalakrishnan）博士、罗伯特·福斯特（RobertT.Foster）博士（Dr。在2024年年度股东大会上，52.5%的股东拒绝支持Balakrishnan博士，51.8%的股东拒绝支持Greenleaf先生和Dr。

Foster was narrowly elected with just 51.4% support.2 These three directors should be held responsible for the lack of meaningful M&A activity, the absence of significant research initiatives, and the consistent failure to meet the Company’s objectives..

福斯特以51.4%的支持率以微弱优势当选。2这三位董事应对缺乏有意义的并购活动、缺乏重大研究计划以及始终未能实现公司目标负责。。

The Board should appoint two shareholder representatives: one from MKT Capital and one from ILJIN SNT Co., Ltd. (“ILJIN”). This will ensure that the interests of the Company’s owners are directly represented in all strategic decisions moving forward.

董事会应任命两名股东代表：一名来自MKT Capital，另一名来自ILJIN SNT Co.，Ltd.（“ILJIN”）。这将确保公司所有者的利益直接体现在未来的所有战略决策中。

The Board should reduce its size to streamline decision-making and enhance accountability.

董事会应缩小规模，以简化决策并加强问责制。

ILJIN, a significant shareholder of Aurinia, should call for an Extraordinary General Meeting as soon as possible. This meeting is essential to address the aforementioned urgent issues, execute necessary leadership changes, and realign the Company’s strategic direction with shareholders’ interests.

作为Aurinia的重要股东，ILJIN应尽快召开临时股东大会。本次会议对于解决上述紧急问题、执行必要的领导层变更以及将公司战略方向与股东利益重新调整至关重要。

The time for change is now. Continued mismanagement of Aurinia threatens the future of our Company and the value we, as shareholders, have entrusted to you. I expect immediate action to rectify these issues.

现在是改变的时候了。Aurinia的持续管理不善威胁到我们公司的未来以及我们作为股东赋予您的价值。我期望立即采取行动纠正这些问题。

Furthermore, I want to emphasize that under no circumstances should the Board proceed with acquiring additional assets that could jeopardize the Company's cash flow and financial stability. This reckless behavior must be halted to preserve the long-term health of Aurinia.

此外，我想强调的是，在任何情况下，董事会都不应继续收购可能危及公司现金流和财务稳定的额外资产。必须停止这种鲁莽的行为，以保护Aurinia的长期健康。

Sincerely,

真诚地，

Lucien Selce

吕西安·塞尔塞

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1

1

Company’s Form 8-K dated June 14, 2024.

2024年6月14日的公司表格8-K。

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2

Company’s Form 8-K dated June 14, 2024.

2024年6月14日的公司表格8-K。