Kiniksa Pharmaceuticals (KNSA) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 709.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 59.45%
• EPS Growth: -290.38%
• Country: US
• Employees: 315
• Sector: Healthcare
• Sector Strength: 60
• Industry: Biotechnology
• EPS (TTM): -0.24
• Shares Outstanding: 42,336,227
• 10 Day Avg. Volume: 852,365
• 30 Day Avg. Volume: 709,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.00
• Price Target Upside: 29.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

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.

Growth Prospects

The company reiterates an OUTPERFORM rating and maintains a $34 price target, suggesting confidence in future growth prospects.

Market Share

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

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

Negative Factors

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.

Treatment Duration

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

Kiniksa Pharmaceuticals Business Overview & Revenue Model

Company Description

Kiniksa Pharmaceuticals, Ltd., a biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical needs worldwide. Its product candidates include ARCALYST, an interleukin-1alpha and interleukin-1beta, for the treatment of recurrent pericarditis, which is an inflammatory cardiovascular disease; Mavrilimumab, a monoclonal antibody inhibitor that completed Phase II clinical trials for the treatment of giant cell arteritis; Vixarelimab, a monoclonal antibody, which is in Phase 2a clinical trial for the treatment of prurigo nodularis, a chronic inflammatory skin condition; and KPL-404, a monoclonal antibody inhibitor of the CD40- CD154 interaction, a T-cell co-stimulatory signal critical for B-cell maturation, immunoglobulin class switching, and type 1 immune response. Kiniksa Pharmaceuticals, Ltd. was incorporated in 2015 and is based in Hamilton, Bermuda.

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 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

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

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

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
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
362.33M	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: Positive
• Last Price: 27.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 27.78 is above the 20-day moving average (MA) of 21.66, above the 50-day MA of 21.76, and above the 200-day MA of 22.65, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 76.27 is Negative, neither overbought nor oversold. The STOCH value of 94.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNSA.

Kiniksa Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNSA	72 Outperform	$2.02B	―	-3.81%	―	59.45%	-290.38%
OMCL	61 Neutral	$1.46B	116.24	1.03%	―	-3.04%	―
GLPG	59 Neutral	$1.82B	21.22	-6.25%	―	―	―
DVAX	57 Neutral	$1.39B	64.45	4.48%	―	19.36%	―
BCRX	56 Neutral	$1.87B	―	18.68%	―	36.00%	63.50%
Sector *	52 Neutral	$5.35B	3.83	-41.70%	2.85%	17.03%	1.22%
VERA	39 Underperform	$1.61B	―	-44.83%	―	―	-20.03%

Kiniksa Pharmaceuticals Corporate Events

Kiniksa Pharmaceuticals Approves Long-Term Incentive Plan

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.

Spark’s Take on KNSA Stock

According to Spark, TipRanks’ AI Analyst, KNSA is a Neutral.

Kiniksa Pharmaceuticals’ overall score reflects a company with strong revenue growth and promising future product developments but hindered by current profitability challenges and negative valuation metrics. Technical indicators suggest weak momentum. Positive earnings call highlights offer a more encouraging outlook, yet the need for improved financial performance remains critical.

To see Spark’s full report on KNSA stock, click here.

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.