Kiniksa Pharmaceuticals (KNSA) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 685.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 56.60%
• EPS Growth: -403.56%
• Country: US
• Employees: 315
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -0.60
• Shares Outstanding: 42,009,500
• 10 Day Avg. Volume: 688,988
• 30 Day Avg. Volume: 685,721
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.01
• Price to Cash Flow (P/CF): 22.60
• P/FCF Ratio: 22.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.25
• Price Target Upside: 65.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Kiniksa Pharmaceuticals exhibits strong revenue growth and a positive cash flow trajectory, contributing to a strengthening financial position. The stock's technical indicators show upward momentum, though near-term overbought signals are present. Despite these strengths, the company's ongoing losses and negative P/E ratio pose valuation concerns, limiting its attractiveness. Overall, the company's prospects are promising, but profitability and valuation issues temper the outlook.

Positive Factors

Financial Health

Kiniksa Pharmaceuticals ended the year with $243.6 million of cash and equivalents and expects to be cash flow positive while funding clinical trials, indicating strong financial health.

Market Share Growth

Arcalyst market share should continue to grow in earlier lines of treatment, with encouraging trends in expected utilization in 1st and 2nd recurrence points.

Revenue Growth Potential

The increase in patient restarts could be a source of revenue growth as these numbers continue to increase.

Negative Factors

Lack of Clinical Catalysts

The lack of clinical catalysts in 2025 means Arcalyst will be the main driver of the stock in the near term.

Limited Treatment Duration Growth

Average upside looks limited on treatment duration, despite some room for growth.

Strategic Discontinuation

The company announced the discontinuation of its abiprubart development plans in Sjögren’s disease, which is viewed as a rational decision given the competitive landscape.

Kiniksa Pharmaceuticals Business Overview & Revenue Model

Company Description

Kiniksa Pharmaceuticals (KNSA) is a biopharmaceutical company engaged in the discovery, development, and commercialization of novel therapeutic medicines. The company focuses on addressing unmet medical needs in areas such as immunology and inflammation. Kiniksa's core products include a pipeline of proprietary drug candidates designed to treat a range of diseases with significant unmet medical needs, leveraging their expertise in immunology to develop innovative solutions.

How the Company Makes Money

Kiniksa Pharmaceuticals generates revenue primarily through the commercialization of its proprietary drug candidates. Revenue streams include sales of approved therapeutic products and potential milestone payments or royalties from strategic collaborations and partnerships with other pharmaceutical companies. The company may also engage in licensing agreements, where it licenses its drug candidates to other firms for further development and commercialization, which can provide upfront payments, milestone payments, and royalty income based on product sales. Additionally, Kiniksa may receive funding through research grants and other financial arrangements to support its drug development programs.

Kiniksa Pharmaceuticals Financial Statement Overview

Summary

Kiniksa Pharmaceuticals shows impressive revenue growth but struggles with profitability as indicated by negative operating margins. The balance sheet is improving with positive equity, yet historical financial instability is a concern. Cash flow improvements suggest better operational cash generation, though profitability remains inconsistent.

Income Statement

Kiniksa Pharmaceuticals has shown a strong revenue growth rate, with a substantial increase from 2023 to 2024. However, profitability margins such as EBIT and EBITDA remain negative, indicating operational challenges. The net profit margin is also negative, signaling a need for better cost management and operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable equity base with positive stockholders' equity in 2024, although it has faced fluctuations in previous years. The debt-to-equity ratio is low, suggesting manageable leverage levels. However, historical negative equity and significant liabilities indicate past financial struggles.

Cash Flow

Kiniksa has shown improvement in cash flow, with a positive free cash flow in 2024, supported by positive operating cash flow. This demonstrates a better ability to generate cash from operations compared to previous years. However, the free cash flow to net income ratio indicates a potential discrepancy between cash generation and profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
423.24M	270.26M	220.18M	38.54M	0.00
	Gross Profit
423.24M	213.74M	173.21M	29.44M	-3.81M
	EBIT
-45.62M	-25.20M	7.37M	-156.64M	-157.36M
	EBITDA
-45.62M	-22.86M	9.77M	-154.28M	-152.42M
	Net Income Common Stockholders
-43.19M	14.08M	183.36M	-157.92M	-161.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.63M	206.37M	190.61M	182.20M	323.48M
	Total Assets
580.55M	526.32M	459.67M	232.80M	349.46M
	Total Debt
9.86M	12.26M	5.92M	6.05M	6.99M
	Net Debt
-173.73M	-95.70M	-116.80M	-116.42M	-107.05M
	Total Liabilities
142.12M	87.48M	63.52M	47.76M	37.53M
	Stockholders Equity
438.44M	438.84M	-492.03M	-675.40M	-517.47M
Cash Flow		Free Cash Flow
25.41M	13.17M	5.70M	-146.71M	-136.81M
	Operating Cash Flow
25.69M	13.30M	5.81M	-126.30M	-136.53M
	Investing Cash Flow
37.67M	-29.56M	-8.08M	128.63M	-23.44M
	Financing Cash Flow
12.27M	1.50M	2.52M	5.88M	227.09M

Kiniksa Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNSA, the sentiment is Neutral. The current price of 20.69 is below the 20-day moving average (MA) of 21.75, below the 50-day MA of 20.95, and below the 200-day MA of 22.48, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 31.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KNSA.

Kiniksa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNSA	66 Neutral	$1.40B	―	-9.85%	―	56.60%	-403.56%
OMCL	62 Neutral	$1.46B	118.91	1.03%	―	-3.04%	―
DVAX	57 Neutral	$1.40B	64.40	4.48%	―	19.36%	―
BCRX	52 Neutral	$1.43B	―	18.68%	―	36.00%	63.50%
GLPG	49 Neutral	$1.59B	20.14	7.21%	―	―	―
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
VERA	41 Neutral	$1.43B	―	-44.83%	―	―	-20.03%

Kiniksa Pharmaceuticals Corporate Events

Kiniksa Pharmaceuticals Ends License Agreement with MedImmune

Kiniksa Pharmaceuticals announced the termination of its license agreement with MedImmune for mavrilimumab, effective May 22, 2025, as part of a strategic reprioritization. The company also decided to discontinue the Phase 2b clinical trial of abiprubart in Sjögren’s Disease, incurring significant expenses related to contract termination costs. Despite these changes, Kiniksa reported strong financial results for 2024, with ARCALYST sales growing by 79% year-over-year, and plans to initiate a Phase 2/3 trial for KPL-387 in recurrent pericarditis in mid-2025.