Kiniksa Pharmaceuticals International (KNSA) Conference September 03, 2025 09:00 AM ET Company ParticipantsGeoff Meacham - Managing DirectorSanj Patel - CEO & Chairman of BoardRoss Moat - EVP & Chief Commercial OfficerJohn Paolini - EVP & Chief Medical OfficerGeoff MeachamWelcome to the second day of the Citi BioPharma Back to School Conference. This is our 20th annual. Last year we didn't do it, and we opted to put all the biotech companies in the Global Healthcare Conference in Miami. This year we're doin ...

Market Overview - The U.S. stock market is expected to remain volatile due to uncertainty following a federal appeals court ruling that a significant portion of President Trump's worldwide tariffs is unlawful [1][7] Investment Strategy - To mitigate risks in the uncertain market, investors are advised to consider low-beta stocks such as Post Holdings, Inc. (POST), Tencent Music Entertainment Group (TME), and Kiniksa Pharmaceuticals International, plc (KNSA) [1][7] Company Insights Post Holdings - Post Holdings is restructuring its portfolio, recently announcing the divestment of its 8th Avenue pasta business for $375 million in cash, while retaining its nut butter, granola, and fruit & nut businesses for better alignment with operations and potential cost synergies [6][7] Tencent Music Entertainment - Tencent Music is poised for growth through its expanding music subscription service, boasting over 124 million paying subscribers and 15 million Super VIP members, alongside a booming advertising business supported by new ad formats and key shopping events [7][8] Kiniksa Pharmaceuticals - Kiniksa Pharmaceuticals is a leading player in treating recurrent pericarditis with its drug ARCALYST, which is currently the only treatment option available for this condition [9][7]

Core Insights - Kiniksa Pharmaceuticals reported a strong commercial performance in Q2 2025, with ARCALYST net product revenue reaching $156.8 million, reflecting a 52% year-over-year growth [1][2][8] - The company has raised its 2025 ARCALYST net sales guidance to between $625 million and $640 million, up from a previous range of $590 million to $605 million [2][13] - Kiniksa is advancing its clinical pipeline, with the initiation of the Phase 2/3 clinical trial for KPL-387 in recurrent pericarditis, expecting data in the second half of 2026 [4][15] Financial Performance - Total revenue for Q2 2025 was $156.8 million, compared to $108.6 million in Q2 2024 [8][22] - The net income for Q2 2025 was $17.8 million, a significant improvement from a net loss of $3.9 million in Q2 2024 [13][22] - Operating expenses for Q2 2025 totaled $136.6 million, up from $108.7 million in Q2 2024, with collaboration expenses increasing due to ARCALYST profitability [8][22] Product and Pipeline Updates - ARCALYST has been prescribed by over 3,475 prescribers for recurrent pericarditis, with an average treatment duration of approximately 30 months [7] - As of Q2 2025, about 15% of the target 14,000 multiple-recurrence patients are actively receiving ARCALYST treatment [7] - KPL-387 is in the dose-focusing portion of its Phase 2/3 trial, with plans for a pivotal trial to follow [4][15] Cash Position - Kiniksa's cash balance increased by $39.4 million in Q2 2025, reaching $307.8 million, with no debt reported [1][13][23] - The company expects to maintain a cash flow positive operating plan on an annual basis [13]

ARCALYST Performance and Market - Kiniksa expects ARCALYST net product revenue of $220 million to $230 million in 2023, representing approximately 84% growth at the midpoint[13,51] - ARCALYST has achieved only about 5% penetration of the target recurrent pericarditis population as of the end of 2022[13] - Approximately 14,000 recurrent pericarditis patients in the U S suffer from persistent underlying disease[28] - The addressable U S opportunity for ARCALYST is estimated to be approximately 14,000 patients, with about 7,000 new patients entering the target pool annually[33,36] - In Q2 2023, ARCALYST product revenue reached $54.5 million, representing approximately 100% year-over-year growth[38] Financial Position and Licensing Agreements - Kiniksa's cash position was $185 million as of Q2 2023[13,21] - The company's cash runway extends into at least 2027, supported by a profitable ARCALYST collaboration and revenue from out-licensing agreements[13,21] - Kiniksa received a $22 million upfront payment from Huadong Medicine and is eligible for up to approximately $640 million in milestones and royalties[24] - Kiniksa has received $100 million in upfront and near-term payments from the Genentech transaction, and is eligible for up to approximately $600 million in milestones[24] KPL-404 Development - KPL-404, a potentially best-in-class asset, is currently in a Phase 2 study for rheumatoid arthritis[14,18] - The Phase 2 trial for KPL-404 in rheumatoid arthritis is a multiple-ascending-dose study evaluating PK and safety, transitioning into a parallel dose efficacy portion[72]

Financial Performance & Growth - Kiniksa expects ARCALYST net revenue for 2025 to be between $590 million and $605 million[7, 34] - The company's Q1 2025 net revenue grew by approximately 75% year-over-year[13] - Kiniksa's Q1 2025 cash reserves are approximately $268 million[8, 35] - ARCALYST has achieved only about 13% penetration into its target population as of the end of Q4 2024[7, 18] Clinical Development - Kiniksa is developing KPL-387 for recurrent pericarditis, with a Phase 2/3 trial expected to begin in mid-2025 and Phase 2 data expected in the second half of 2026[7, 34] - The company is conducting IND-enabling activities with KPL-1161[7, 34] - KPL-387 is a fully human IgG2 monoclonal antibody that binds to IL-1R1, inhibiting IL-1α & IL-1β cytokine-mediated signaling[22] Commercial Strategy - Kiniksa's strategy focuses on driving future growth through innovation and execution, maximizing the current commercial opportunity for ARCALYST, and advancing its clinical portfolio[34] - The company aims to support the creation of an efficient network of care with regional centers of excellence and educate on data related to duration of disease and treatment to support longer-term persistence on ARCALYST[18]