### Title: Kiniksa Pharmaceuticals' Solid Quarter ### Promo: Kiniksa Pharmaceuticals reports strong revenue growth for Q1 2024 fueled by ARCALYST's success. ---
85% year-over-year growth in ARCALYST revenue
Net loss increased to $17.7 million
Revenue guidance for ARCALYST raised to $370-$390 million for 2024
Kiniksa Pharmaceuticals International, plc, the pharmaceutical company known for its flagship product ARCALYST, released its Q1 2024 earnings on April 23, 2024. The company reported significant growth in ARCALYST revenue, which reached $78.9 million for the quarter, up 85% from Q1 2023. Overall, total revenue was $79.9 million, compared to the analyst estimate of $90.6 million. This performance resulted in a net loss of $17.7 million, compared to a net loss of $12.3 million in Q1 2023. Despite the loss, management was optimistic about the quarter, reflected in their increased 2024 revenue guidance for ARCALYST to $370 to $390 million.
Metric Q1 2024 Estimate Q1 2023 % Change YoY Total Revenue $79.9 million $90.6 million $48.3 million 65.4% ARCALYST Revenue $78.9 million - $42.7 million 85.0% Net Loss ($17.7 million) - ($12.3 million) 43.9% Cash, Cash Equivalents, and Short-term Investments $213.6 million - $206.4 million 3.5% Source: Analyst estimates for the quarter provided by FactSet
About Kiniksa Pharmaceuticals
Kiniksa Pharmaceuticals International, plc is a pharmaceutical company focused on developing and commercializing therapies for unmet medical needs. The company’s primary revenue source comes from ARCALYST (rilonacept), which is approved for the treatment of recurrent pericarditis and other inflammatory diseases. Kiniksa's recent operational focus has been on expanding ARCALYST's reach and advancing its pipeline of potential medicines, particularly abiprubart (KPL-404) and mavrilimumab.
ARCALYST's commercial success is critical for Kiniksa, as it is currently its sole FDA-approved product. The company continues to grow the number of prescribers and has maintained high payer approval rates. Additionally, Kiniksa is working to diversify its product portfolio by advancing pipeline candidates through clinical trials and forming strategic partnerships.
Quarterly Highlights
ARCALYST achieved $78.9 million in net revenue for Q1 2024, reflecting an impressive 85% year-over-year increase from $42.7 million in Q1 2023. The number of prescribers since its launch in April 2021 rose to approximately 2,000. According to management, payer approval rates have exceeded 90%, and patient satisfaction remains high.
The pipeline remains a key focus, with abiprubart (KPL-404) advancing into Phase 2 clinical trials. Kiniksa plans to initiate a Phase 2b trial for abiprubart in Sjögren’s Disease in the second half of 2024. Additionally, the company is exploring partnership opportunities for mavrilimumab, a potential treatment for multiple indications.
Kiniksa's strategic partnerships provide substantial benefits. The collaboration with Regeneron includes profit-sharing for ARCALYST, while the agreements with Huadong and Genentech offer milestone payments up to $575 million and extend market reach in the Asia-Pacific region. These partnerships bolster Kiniksa's financial stability, evidenced by its cash reserves of $213.6 million as of March 31, 2024.
Operating expenses for Q1 2024 reached $96.4 million, up from $59.5 million in Q1 2023, primarily due to increased commercialization costs and expenses related to ARCALYST. This increase resulted in an elevated net loss of $17.7 million, compared to $12.3 million in the prior year.
Looking Ahead
Management has raised its full-year revenue guidance for ARCALYST to between $370 million and $390 million, reflecting confidence in continued strong sales. The company aims to increase the prescriber base and enhance repeat prescriptions, signaling a robust growth strategy.
Looking forward, Kiniksa plans to advance its pipeline products, with abiprubart’s Phase 2b trial being a key focus. The company expects to maintain a positive cash flow on an annual basis while investing in its growth. Investors should pay attention to pipeline developments and the continued commercial performance of ARCALYST in upcoming quarters.
