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Kiniksa Pharmaceuticals (KNSA)
NASDAQ:KNSA
US Market

Kiniksa Pharmaceuticals (KNSA) AI Stock Analysis

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Kiniksa Pharmaceuticals

(NASDAQ:KNSA)

Rating:72Outperform
Price Target:
Kiniksa Pharmaceuticals presents a strong growth narrative with improving financial performance and a positive earnings outlook. However, the negative P/E ratio and technical indicators suggest caution. The company's strategic initiatives and positive earnings call sentiment contribute to an encouraging outlook, but past financial instability and valuation concerns weigh on the score.
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.
Product Development
Management highlighted KPL-387, a new, wholly owned IL-1R1-targeting monoclonal antibody for recurrent pericarditis which could potentially be administered as subcutaneous injection in liquid formulation and dosed monthly.
Negative Factors
Clinical Pipeline
The lack of clinical catalysts in 2025 means Arcalyst will be the main driver of the stock in the near term.
Product 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 (KNSA) vs. SPDR S&P 500 ETF (SPY)

Kiniksa Pharmaceuticals Business Overview & Revenue Model

Company DescriptionKiniksa Pharmaceuticals (KNSA) is a biopharmaceutical company that focuses on discovering, developing, and commercializing therapeutic medicines for patients with debilitating diseases with significant unmet medical needs. The company's core products are primarily in the fields of immunology, inflammation, and autoimmunity, with a pipeline that includes both clinical and preclinical stage product candidates.
How the Company Makes MoneyKiniksa Pharmaceuticals makes money primarily through the development and commercialization of its proprietary drug products. The company generates revenue through sales of its approved therapies, licensing agreements, and strategic collaborations with other pharmaceutical companies. These partnerships may include co-development and co-commercialization agreements, which provide Kiniksa with milestone payments and royalties based on sales achievements. Additionally, the company may engage in research collaborations that offer funding to advance its clinical programs and further enhance its product pipeline.

Kiniksa Pharmaceuticals Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Chart InsightsKiniksa Pharmaceuticals' product revenue has shown a robust upward trajectory, with ARCALYST driving significant growth. The latest earnings call highlights a 75% year-over-year increase in Q1 2025, fueled by an expanded prescriber base and longer therapy durations. The company has raised its 2025 sales guidance, reflecting strong market demand. Despite minor concerns about manufacturing tariffs and Medicare Part D retention, Kiniksa's financial outlook remains positive, supported by strategic initiatives and a solid cash position.
Data provided by:Main Street Data

Kiniksa Pharmaceuticals Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 35.58%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for Kiniksa Pharmaceuticals in Q1 2025, driven by significant revenue growth for ARCALYST and an increase in prescriber adoption. Despite minor concerns regarding potential manufacturing tariffs and Medicare Part D patient retention, the company's financial outlook remains robust.
Q1-2025 Updates
Positive Updates
Strong ARCALYST Revenue Growth
Net product revenue for ARCALYST reached $137.8 million in Q1 2025, a 75% year-over-year increase compared to Q1 2024. The company increased its 2025 net sales guidance from $560-$580 million to $590-$605 million.
Increased Prescriber Base
The number of new prescribers increased by approximately 300 in Q1 2025, one of the highest quarterly increases since launch.
Positive Financial Performance
Kiniksa reported a net income of $8.5 million in Q1 2025 compared to a net loss of $17.7 million in Q1 2024. ARCALYST collaboration profit grew 118% year-over-year to $87.6 million.
Extended Average Duration of Therapy
The average duration of therapy for ARCALYST increased from 27 months to 30 months.
Favorable Medicare Part D Changes
Federal changes to the Medicare Part D program improved patient affordability, leading to a onetime bolus of patients converting to paid therapy at the start of Q1 2025.
Negative Updates
Potential Tariff Impact on Manufacturing
ARCALYST manufacturing is transitioning to Samsung Biologics in South Korea, which could potentially be affected by tariffs. However, the impact is expected to be immaterial on cost of goods sold and gross margin.
Uncertainty in Medicare Part D Patient Continuation
There is some uncertainty regarding the continuation of Medicare Part D patients, as they may opt out or be disenrolled if they do not pay premiums.
Company Guidance
In the first quarter of 2025, Kiniksa Pharmaceuticals reported a strong commercial performance driven primarily by its ARCALYST product for recurrent pericarditis, achieving a net product revenue of $137.8 million, a 75% increase from the previous year. This growth was supported by an expansion in the prescriber base, with around 300 new prescribers, and an increase in the average duration of therapy from approximately 27 to 30 months. The positive financial results allowed Kiniksa to revise its ARCALYST net sales guidance upward to $590 million to $605 million for 2025. Additionally, the company is preparing to initiate a Phase II/III clinical trial for KPL-387, with Phase II data expected in 2026. Kiniksa maintains a strong financial position, ending the quarter with a cash balance of $268.3 million, and expects to remain cash flow positive on an annual basis.

Kiniksa Pharmaceuticals Financial Statement Overview

Summary
Kiniksa Pharmaceuticals is showing robust revenue growth and a strong gross profit margin. The company has significantly reduced its net loss, indicating progress towards profitability. The balance sheet is stable with low leverage, and cash flow metrics are strong, suggesting efficient cash management and operational efficiency. However, past financial instability is still a consideration.
Income Statement
75
Positive
Kiniksa Pharmaceuticals has shown impressive revenue growth, with significant increases over the past few years, including a 13.7% growth from 2024 to 2025 TTM. Gross profit margin is strong at approximately 93.8% in the TTM period. However, the company is still operating at a net loss, though it has improved significantly from previous years, reducing the net loss from $43.19 million in 2024 to $2.9 million in the TTM period. This indicates a positive trajectory towards profitability.
Balance Sheet
68
Positive
The balance sheet shows a healthy equity position with stockholders' equity growing to $457.49 million. The debt-to-equity ratio is low at approximately 0.02, indicating low leverage and reduced financial risk. However, the company's equity ratio of 76.3% highlights stability, but the historical negative equity in 2021 and prior years is a concern, pointing to past financial instability.
Cash Flow
80
Positive
Cash flow analysis reveals positive trends with free cash flow growing by 72% from 2024 to the TTM period. The operating cash flow to net income ratio is exceptionally strong, indicating efficient cash management. Free cash flow to net income ratio also reflects a robust cash-generating ability. These metrics suggest strong operational efficiency and cash management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
481.17M423.24M270.26M220.18M38.54M0.00
Gross Profit
389.86M362.33M213.74M173.21M29.44M-3.81M
EBIT
-15.80M-45.62M-25.20M7.37M-156.64M-157.36M
EBITDA
-14.97M-45.62M-22.86M9.77M-154.28M-152.42M
Net Income Common Stockholders
-16.95M-43.19M14.08M183.36M-157.92M-161.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
268.34M243.63M206.37M190.61M182.20M323.48M
Total Assets
599.33M580.55M526.32M459.67M232.80M349.46M
Total Debt
9.91M9.86M12.26M5.92M6.05M6.99M
Net Debt
-147.22M-173.73M-95.70M-116.80M-116.42M-107.05M
Total Liabilities
141.84M142.12M87.48M63.52M47.76M37.53M
Stockholders Equity
457.49M438.44M438.84M-492.03M-675.40M-517.47M
Cash FlowFree Cash Flow
43.73M25.41M13.17M5.70M-146.71M-136.81M
Operating Cash Flow
44.03M25.69M13.30M5.81M-126.30M-136.53M
Investing Cash Flow
-39.39M37.67M-29.56M-8.08M128.63M-23.44M
Financing Cash Flow
11.42M12.27M1.50M2.52M5.88M227.09M

Kiniksa Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.11
Price Trends
50DMA
23.96
Positive
100DMA
22.15
Positive
200DMA
22.87
Positive
Market Momentum
MACD
1.09
Negative
RSI
70.29
Negative
STOCH
82.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNSA, the sentiment is Positive. The current price of 29.11 is above the 20-day moving average (MA) of 26.69, above the 50-day MA of 23.96, and above the 200-day MA of 22.87, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 82.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNSA.

Kiniksa Pharmaceuticals Risk Analysis

Kiniksa Pharmaceuticals disclosed 66 risk factors in its most recent earnings report. Kiniksa Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
As a result of increased shareholder voting requirements in the United Kingdom relative to Bermuda, we will have less flexibility with respect to our ability to issue new shares. Q4, 2024
2.
The rights afforded to our shareholders are governed by English law. Not all rights available to shareholders under United States law will be available to holders of our ordinary shares. Q4, 2024
3.
Investors in the United States may find it difficult to enforce their civil liabilities against us. Q4, 2024

Kiniksa Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$2.04B-3.81%59.45%-290.38%
66
Neutral
$2.25B18.68%41.67%75.79%
62
Neutral
$1.41B66.461.73%3.00%
53
Neutral
$5.23B3.23-44.27%2.82%16.82%0.11%
53
Neutral
$1.93B21.22-6.25%
48
Neutral
$1.18B64.45-10.45%24.76%-783.38%
39
Underperform
$2.02B-39.49%-20.03%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KNSA
Kiniksa Pharmaceuticals
29.11
9.40
47.69%
BCRX
BioCryst
11.19
4.40
64.80%
DVAX
Dynavax
10.01
-2.09
-17.27%
OMCL
Omnicell
31.02
0.49
1.60%
GLPG
Galapagos
28.64
1.48
5.45%
VERA
Vera Therapeutics
30.91
-10.27
-24.94%

Kiniksa Pharmaceuticals Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Kiniksa Pharmaceuticals Annual Shareholders Meeting Decisions
Neutral
Jun 3, 2025

On June 3, 2025, Kiniksa Pharmaceuticals held its Annual Meeting of Shareholders where several proposals were voted on and passed. Key decisions included the re-election of directors across three classes, the appointment and remuneration of auditors, and the approval of various financial and governance measures. These resolutions are likely to impact the company’s governance structure and financial operations, potentially influencing its strategic direction and stakeholder relationships.

The most recent analyst rating on (KNSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Kiniksa Pharmaceuticals stock, see the KNSA Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Kiniksa Pharmaceuticals Approves Long-Term Incentive Plan
Positive
Apr 23, 2025

On April 17, 2025, Kiniksa Pharmaceuticals‘ Board of Directors approved a Long-Term Incentive Plan for its executive officers, aimed at achieving key milestones related to the development and FDA approval of KPL-387 for recurrent pericarditis. The plan includes cash awards, performance share units, and share options, with the potential for varying earnout percentages based on milestone achievement dates. This initiative reflects Kiniksa’s strategic focus on advancing KPL-387 and incentivizing its leadership to drive the company’s growth and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.