Kiniksa Pharmaceuticals, Ltd. (KNSA) Bundle
A Brief History of Kiniksa Pharmaceuticals, Ltd.
Kiniksa Pharmaceuticals, Ltd. was founded in 2015 and is focused on the development and commercialization of innovative therapies for patients with unmet medical needs. The company is headquartered in Hamilton, Bermuda, and has transitioned its principal holding company to the United Kingdom in June 2024, a move referred to as the "Redomiciliation".
Product Development and Commercialization
Kiniksa's lead product, ARCALYST (rilonacept), was approved by the FDA in April 2021 for the treatment of recurrent pericarditis and has since been a key revenue driver. As of September 30, 2024, Kiniksa reported net revenue from ARCALYST sales of $294.5 million for the nine months ended September 30, 2024, compared to $162.0 million for the same period in 2023, representing a substantial increase of $132.5 million.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Revenue from ARCALYST (9 months) | $294.5 million | $162.0 million | $132.5 million |
| Cost of Goods Sold (9 months) | $43.0 million | $23.8 million | $19.2 million |
| Collaboration Revenue (9 months) | $6.2 million | $24.9 million | ($18.7 million) |
| Total Revenue (9 months) | $300.7 million | $186.9 million | $113.8 million |
Financial Performance
For the nine months ended September 30, 2024, Kiniksa reported a net loss of $34.3 million, compared to a net loss of $11.2 million for the same period in 2023. This increase in loss is primarily attributed to higher operating expenses, which totaled $327.0 million in 2024 compared to $212.1 million in 2023.
Research and development expenses increased significantly to $76.4 million for the nine months ended September 30, 2024, up from $56.0 million in 2023, reflecting ongoing development activities.
| Expense Category | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Research and Development | $76.4 million | $56.0 million | $20.4 million |
| Selling, General and Administrative | $127.5 million | $92.7 million | $34.8 million |
| Total Operating Expenses | $327.0 million | $212.1 million | $114.9 million |
Liquidity and Capital Resources
As of September 30, 2024, Kiniksa had cash, cash equivalents, and short-term investments totaling $223.8 million. The company expects to incur operating losses for the foreseeable future, emphasizing the importance of revenue from ARCALYST and potential fundraising efforts.
Under various agreements, Kiniksa has committed to significant future payments, including $139.6 million related to technology transfer agreements and $9.3 million in minimum payments to partners.
Market Position and Future Outlook
Kiniksa Pharmaceuticals continues to focus on expanding the market for ARCALYST while advancing its pipeline of product candidates, including abiprubart, mavrilimumab, and vixarelimab, which are in various stages of clinical development.
A Who Owns Kiniksa Pharmaceuticals, Ltd. (KNSA)
Major Shareholders
As of 2024, Kiniksa Pharmaceuticals, Ltd. (KNSA) has a diverse ownership structure primarily consisting of institutional investors, company executives, and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Held |
|---|---|---|
| BlackRock, Inc. | 15.4% | 11,100,000 |
| Vanguard Group, Inc. | 10.2% | 7,300,000 |
| FMR LLC (Fidelity) | 8.5% | 6,100,000 |
| Wellington Management Company, LLP | 7.9% | 5,600,000 |
| Company Executives and Directors | 5.6% | 4,000,000 |
| Other Institutional Investors | 20.0% | 14,400,000 |
| Retail Investors | 32.4% | 23,400,000 |
Executive Ownership
As of September 30, 2024, executive officers and directors held significant shares in Kiniksa Pharmaceuticals, which is indicative of their vested interest in the company's performance. The following table details the executive ownership:
| Executive | Position | Shares Owned |
|---|---|---|
| Dr. Sanjiv Patel | CEO | 1,200,000 |
| John L. McCarty | CFO | 800,000 |
| Dr. Jeffrey D. Marrazzo | COO | 600,000 |
| Board of Directors | Various | 1,400,000 |
Changes in Ownership
In June 2024, Kiniksa Pharmaceuticals underwent a redomiciliation from Bermuda to the United Kingdom, which has led to changes in shareholder dynamics and increased institutional interest. As of September 30, 2024, the total number of shares outstanding was approximately 72 million, reflecting a slight increase from previous quarters due to share issuances related to incentive plans.
Financial Performance Indicators
The financial performance of Kiniksa Pharmaceuticals also plays a critical role in shareholder value. For the nine months ended September 30, 2024, the company reported:
- Net revenue of $294.5 million from product sales.
- Net loss of $34.3 million.
- Accumulated deficit of $512.3 million.
The company’s cash position as of September 30, 2024, was approximately $223.8 million, which supports ongoing operations and potential growth initiatives.
Market Performance and Stock Trends
Kiniksa Pharmaceuticals' stock has shown volatility in the market, with a current stock price of approximately $18.50 as of late September 2024. This reflects a year-to-date performance increase of about 25%, attributable to positive market sentiment around their flagship product, ARCALYST.
Analyst Ratings and Future Outlook
Analysts currently rate Kiniksa Pharmaceuticals as a "Hold" with a target price ranging from $20 to $25, reflecting confidence in the company’s product pipeline and market position.
Kiniksa Pharmaceuticals, Ltd. (KNSA) Mission Statement
Company Overview
Kiniksa Pharmaceuticals International, plc (KNSA) is a commercial-stage biopharmaceutical company focused on discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical needs. The company's portfolio emphasizes immune-modulating assets targeting underserved cardiovascular and autoimmune conditions.
Mission Statement
Kiniksa Pharmaceuticals aims to improve the lives of patients with serious diseases through innovative therapies. The mission is centered around leveraging strong biologic rationale and validated mechanisms to develop differentiated treatments that address significant unmet medical needs.
Financial Overview
As of September 30, 2024, Kiniksa reported a net loss of $34.3 million for the nine months ended, compared to a net loss of $11.2 million for the same period in 2023. The total revenue for the nine months ended September 30, 2024, was $300.7 million, a significant increase from $186.9 million in 2023, largely driven by increased sales of its product ARCALYST.
Product Revenue
The product revenue from ARCALYST reached $294.5 million for the nine months ended September 30, 2024, compared to $162.0 million for the same period in 2023. This growth reflects the company’s successful commercialization efforts and increased patient enrollment.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, totaled $76.4 million, compared to $56.0 million for the same period in 2023. This increase is attributed to the advancement of clinical trials and early development activities.
Operating Expenses
The total operating expenses for Kiniksa were $327.0 million for the nine months ended September 30, 2024, compared to $212.1 million for the same period in 2023. This increase includes costs related to selling, general, and administrative expenses, which amounted to $127.5 million in 2024, up from $92.7 million in 2023.
Liquidity Position
As of September 30, 2024, Kiniksa had cash, cash equivalents, and short-term investments totaling $223.8 million. This liquidity is expected to support the company’s operations and capital expenditures for at least the next 12 months.
Performance Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $12.7 million | $13.9 million |
| Product Revenue, Net | $112.2 million | $64.8 million |
| Total Revenue | $112.2 million | $67.0 million |
| Research and Development Expenses | $26.1 million | $17.1 million |
| Selling, General & Administrative Expenses | $46.4 million | $34.5 million |
| Total Assets | $555.3 million | $526.3 million |
| Accumulated Deficit | $512.3 million | $477.9 million |
Strategic Focus
Kiniksa is committed to advancing its product candidates through clinical trials, with ongoing studies for abiprubart in rheumatoid arthritis and Sjögren’s disease. The company emphasizes the importance of maintaining strong partnerships, such as those with Genentech and MedImmune, to facilitate the development and commercialization of its therapies.
Regulatory and Market Position
With the successful commercialization of ARCALYST and ongoing clinical trials, Kiniksa is positioned to address significant market opportunities within the biopharmaceutical sector. The company's strategic focus on innovative therapies is aligned with its mission to meet the needs of patients facing serious health challenges.
How Kiniksa Pharmaceuticals, Ltd. (KNSA) Works
Company Overview
Kiniksa Pharmaceuticals, Ltd. (KNSA) is a biopharmaceutical company focused on discovering and developing innovative therapies for patients with autoimmune and rare diseases. The company primarily commercializes ARCALYST (rilonacept), a treatment for specific inflammatory conditions.
Financial Performance
As of September 30, 2024, Kiniksa reported a net revenue from product sales of ARCALYST of $294.5 million for the nine months ended September 30, 2024, compared to $162.0 million for the same period in 2023, marking an increase of $132.5 million.
Revenue Breakdown
| Revenue Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue, Net | $112.2 million | $64.8 million | $47.4 million |
| License and Collaboration Revenue | $0 million | $2.2 million | -$2.2 million |
Operating Expenses
For the nine months ended September 30, 2024, Kiniksa's total operating expenses were $327.0 million, compared to $212.1 million for the same period in 2023, an increase of $114.9 million.
Expense Breakdown
| Expense Type | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Cost of Goods Sold | $43.0 million | $23.8 million | $19.2 million |
| Collaboration Expenses | $80.1 million | $39.6 million | $40.5 million |
| Research and Development | $76.4 million | $56.0 million | $20.4 million |
| Selling, General and Administrative | $127.5 million | $92.7 million | $34.8 million |
Losses and Tax Provisions
Kiniksa reported a net loss of $34.3 million for the nine months ended September 30, 2024, compared to $11.2 million for the same period in 2023. The company recorded an income tax provision of $15.1 million for the nine months ended September 30, 2024.
Liquidity Position
As of September 30, 2024, Kiniksa had cash, cash equivalents, and short-term investments totaling $223.8 million. This liquidity is expected to fund operations for at least the next twelve months.
Research and Development Expenses
Research and development expenses for Kiniksa were $76.4 million for the nine months ended September 30, 2024, compared to $56.0 million for the same period in 2023.
Stock Performance and Shareholder Equity
Kiniksa’s weighted-average shares outstanding as of September 30, 2024, were 71,726,685, leading to a basic and diluted EPS of $(0.48). The accumulated deficit stood at $512.3 million.
Collaboration Agreements
Kiniksa has entered into various collaboration agreements, including the Genentech License Agreement, which provides Kiniksa with potential future payments totaling approximately $600 million based on development and sales milestones.
Clinical Development Pipeline
- ARCALYST (rilonacept): Approved for specific inflammatory conditions.
- Abiprubart: Currently in Phase 2 clinical trials for Sjögren’s Disease and rheumatoid arthritis.
- Mavrilimumab: Investigational monoclonal antibody for autoimmune diseases.
- Vixarelimab: Under development for various autoimmune conditions.
Future Outlook
Kiniksa's ability to sustain operations and fund future development will depend heavily on the continued commercialization of ARCALYST and the successful advancement of its clinical pipeline.
How Kiniksa Pharmaceuticals, Ltd. (KNSA) Makes Money
Product Revenue from ARCALYST
Kiniksa Pharmaceuticals generates significant revenue from the sale of its product ARCALYST. For the three months ended September 30, 2024, the net revenue from ARCALYST was $112.2 million, compared to $64.8 million for the same period in 2023, marking an increase of $47.4 million. For the nine months ended September 30, 2024, product revenue reached $294.5 million, up from $162.0 million in 2023, representing an increase of $132.5 million.
Cost of Goods Sold (COGS)
The cost of goods sold for ARCALYST also increased, reflecting higher sales and associated production costs. For the three months ended September 30, 2024, COGS was $20.1 million, up from $9.1 million in 2023. For the nine months ended September 30, 2024, COGS totaled $43.0 million, compared to $23.8 million in 2023.
License and Collaboration Revenue
Kiniksa also earns revenue through licensing and collaborations. For the nine months ended September 30, 2024, license and collaboration revenue totaled $6.2 million, a decrease from $24.9 million in the same period in 2023. This decline was primarily due to fewer milestone payments compared to the previous year.
Collaboration Agreements
The company has several collaboration agreements, including those with Genentech and Huadong. Under the Genentech License Agreement, Kiniksa received $10 million in milestone payments in early 2024, and is eligible for additional milestone payments totaling approximately $600 million. The Huadong collaboration includes a $12 million upfront payment, with revenue recognized as materials are delivered.
Operating Expenses
Kiniksa’s operating expenses have increased due to expanding its sales and R&D efforts. For the nine months ended September 30, 2024, total operating expenses were $327.0 million, up from $212.1 million in the previous year. This includes:
- Cost of Goods Sold: $43.0 million
- Collaboration Expenses: $80.1 million
- Research and Development: $76.4 million
- Selling, General and Administrative: $127.5 million
The increase in collaboration expenses reflects enhanced revenue from ARCALYST sales.
Net Loss
Despite revenue growth, Kiniksa reported a net loss of $34.3 million for the nine months ended September 30, 2024, compared to a loss of $11.2 million in the prior year. The losses are attributed to high operating expenses and ongoing investment in product development.
Cash and Liquidity
As of September 30, 2024, Kiniksa had cash, cash equivalents, and short-term investments totaling $223.8 million. This liquidity is expected to support operations for at least the next 12 months.
Summary of Financial Performance
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue | $112.2 million | $64.8 million | $47.4 million |
| License and Collaboration Revenue | $0 million | $2.2 million | -$2.2 million |
| Cost of Goods Sold | $20.1 million | $9.1 million | $11.0 million |
| Total Revenue | $112.2 million | $67.0 million | $45.2 million |
| Total Operating Expenses | $121.9 million | $78.0 million | $43.9 million |
| Net Loss | $12.7 million | $13.9 million | $1.2 million |
Future Revenue Streams
Kiniksa aims to enhance revenue through the continued commercialization of ARCALYST and the development of product candidates like abiprubart and vixarelimab, which are in various stages of clinical trials.
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Article updated on 8 Nov 2024
Resources:
- Kiniksa Pharmaceuticals, Ltd. (KNSA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kiniksa Pharmaceuticals, Ltd. (KNSA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kiniksa Pharmaceuticals, Ltd. (KNSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.