Kiniksa Pharmaceuticals, Ltd. (KNSA) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on KNSA

Kiniksa Pharmaceuticals' recent performance is driven by positive earnings momentum and growth prospects. The company has an impressive earnings surprise history, with a strong likelihood of beating estimates again (Source: October 16, 2025). Analysts forecast a 29.3% upside potential, citing raised earnings estimates (Source: October 14, 2025). Additionally, the company has received U.S. Orphan Drug Designation for KPL-387, a treatment for pericarditis, which could provide a competitive edge (Source: October 17, 2025). Upcoming Q3 2025 financial results may also drive momentum (Source: October 23, 2025).

1.c. Company Highlights

Last Price	41.67
Change Percentage	1.66%
Open	41.12
Previous Close	40.99
Market Cap ( Millions)	3054
Volume	339536
Year High	42.98
Year Low	17.82
M A 50	39.32
M A 200	30.42

FCF Yield	3.33%
Dividend Yield	0.00%
ROE	7.46%
Debt / Equity	1.82%
Net Debt / EBIDTA	-380.68%
Price To Book	5.73
Price Earnings Ratio	85.39
Price To FCF	30.02
Price To sales	5.11
EV / EBITDA	66.59

2. Kiniksa Pharmaceuticals' Strong Q3 2025 Earnings Driven by ARCALYST Sales Growth

Kiniksa Pharmaceuticals reported a robust third quarter 2025, with revenue growing 61% year-over-year to $180.9 million, driven by the increasing adoption of ARCALYST for the treatment of recurrent pericarditis. The company's net income was $18.4 million, compared to a net loss of $12.7 million a year ago. Earnings per share (EPS) came in at $0.23, slightly below estimates of $0.33. Operating expenses grew 29% year-over-year to $156.8 million, but the company's cash balance increased by approximately $44 million to $352.1 million.

Publication Date: Nov -16

                                    📋 Highlights
                                    ARCALYST Revenue Growth::
                                                Q3 revenue surged 61% YoY to $180.9M, with full-year guidance raised to $670–675M (up $40M).
Net Income Turnaround::
                                                Net income reached $18.4M in Q3 2025, reversing a $12.7M net loss YoY.
Cash Balance Strength::
                                                Cash reserves increased to $352.1M, up $44M, supporting long-term operations.
Prescriber Expansion::
                                                Over 350 new ARCALYST prescribers in Q3, driven by awareness and commercial efforts.
Therapy Duration & Efficacy::
                                                45% of patients restart treatment after 12–17.5 months, with 99.5% reduction in event rates post-treatment.

                                

ARCALYST Adoption and Patient Outcomes

The growing adoption of ARCALYST is driven by its efficacy in reducing recurrent pericarditis events, with data showing a 99.5% reduction in event rates post-treatment compared to pretreatment, as highlighted by John Paolini, CMO. The average duration of initial treatment is now 17.5 months, with 45% of patients restarting therapy. The company is seeing an increase in ARCALYST utilization in the first recurrence population, with 20% of patients now in this group.

Guidance and Commercial Momentum

Kiniksa raised its full-year net sales guidance for ARCALYST to between $670 million and $675 million, a $40 million increase from its previous guidance. The company's commercial efforts are driving significant revenue growth, with over 350 new prescribers in the third quarter. Gross-to-net dynamics for ARCALYST were 8.9% for the quarter, in line with historical patterns.

Valuation and Growth Prospects

With a P/E Ratio of 82.63 and an expected revenue growth rate of 29.9% next year, Kiniksa's valuation appears to be pricing in significant growth. The company's P/S Ratio is 4.94, and its EV/EBITDA is 64.31. The ROE is 7.46%, and ROIC is 4.77%. Analysts will be watching to see if the company can continue to deliver on its growth prospects.

3. NewsRoom

AXQ Capital LP Makes New $289,000 Investment in Kiniksa Pharmaceuticals International, plc $KNSA

Nov -25

Source: defenseworld.net

Kiniksa Pharmaceuticals to Present at Jefferies Global Healthcare Conference in London

Nov -12

Source: globenewswire.com

New Strong Sell Stocks for Oct. 30th

Oct -30

Source: zacks.com

Kiniksa: How Category Ownership And Higher Duration Are Translating Into Operating Leverage

Oct -30

Source: seekingalpha.com

Kiniksa Pharmaceuticals International, plc (KNSA) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

Kiniksa Pharmaceuticals International, plc (KNSA) Q3 Earnings Miss Estimates

Oct -28

Source: zacks.com

Kiniksa Pharmaceuticals Reports Third Quarter 2025 Financial Results and Recent Portfolio Execution

Oct -28

Source: globenewswire.com

Kiniksa Pharmaceuticals to Report Third Quarter 2025 Financial Results on October 28, 2025

Oct -23

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Therapeutic Medicines

Expected Growth: 9.27%

Kiniksa Pharmaceuticals' Therapeutic Medicines segment growth of 9.27% is driven by increasing adoption of orphan disease treatments, strong pipeline of novel therapies, and strategic partnerships. Growing demand for rare disease treatments, expanding indications for existing products, and favorable regulatory environments also contribute to the segment's growth.

7. Detailed Products

ARO-C3

ARO-C3 is a novel, oral, small molecule inhibitor of phosphodiesterase-3 (PDE3) for the treatment of cardiovascular disease.

Mavrilimumab

Mavrilimumab is a human monoclonal antibody that targets granulocyte-macrophage colony-stimulating factor (GM-CSF), a key cytokine involved in the inflammation and immune response.

Vixarelimab

Vixarelimab is a human monoclonal antibody that targets the OX40 receptor, a key regulator of immune responses.

8. Kiniksa Pharmaceuticals, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kiniksa Pharmaceuticals, Ltd. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the ongoing research and development in the pharmaceutical industry.

Bargaining Power Of Customers

Kiniksa Pharmaceuticals, Ltd. has a diverse customer base, and no single customer has significant bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Kiniksa Pharmaceuticals, Ltd. relies on a few key suppliers for raw materials and services, giving them some bargaining power, but the company's size and diversification mitigate this threat.

Threat Of New Entrants

The pharmaceutical industry is highly competitive, and new entrants can easily disrupt the market, posing a significant threat to Kiniksa Pharmaceuticals, Ltd.'s market share.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.72%
Debt Cost	3.95%
Equity Weight	97.28%
Equity Cost	5.54%
WACC	5.49%
Leverage	2.79%

11. Quality Control: Kiniksa Pharmaceuticals, Ltd. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Theravance Biopharma

A-Score: 5.4/10

Value: 4.0

Growth: 6.4

Quality: 7.1

Yield: 0.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

Kiniksa Pharmaceuticals

A-Score: 5.0/10

Value: 0.9

Growth: 8.0

Quality: 6.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

Protagonist Therapeutics

A-Score: 4.7/10

Value: 0.2

Growth: 9.4

Quality: 8.0

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

G1 Therapeutics

A-Score: 3.7/10

Value: 6.0

Growth: 6.4

Quality: 4.2

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

Immunome

A-Score: 3.6/10

Value: 6.4

Growth: 5.1

Quality: 4.7

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

Praxis Precision Medicines

A-Score: 3.5/10

Value: 6.0

Growth: 7.9

Quality: 4.7

Yield: 0.0

Momentum: 2.5

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.54%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.49%

Kiniksa Pharmaceuticals, Ltd. - BMG5269C1010

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KNSA

1.c. Company Highlights

Expensive

Strong Momentum

Average Growth

Earnings Miss

Revenues Beats

Earnings Beats

Medium Volatility

Revenues Miss

Fairly Valued

Stable Momentum

Higher Growth

2. Kiniksa Pharmaceuticals' Strong Q3 2025 Earnings Driven by ARCALYST Sales Growth

ARCALYST Adoption and Patient Outcomes

Guidance and Commercial Momentum

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Therapeutic Medicines

Expected Growth: 9.27%

7. Detailed Products

ARO-C3

Mavrilimumab

Vixarelimab

8. Kiniksa Pharmaceuticals, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kiniksa Pharmaceuticals, Ltd. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.67$

Current Price

41.67$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA