KNSA - Earnings call transcript Q1 2022 | Kiniksa Pharmaceuticals, Ltd.

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Operator

Good day, and thank you for standing by. Welcome to the Kiniksa Pharmaceuticals first quarter earnings conference call. At this time all participants are in a listen-only mode. After the speaker presentation there’ll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. Instructions]. [Operator like Investor conference Relations. now Frank, to hand of Head to would over the Rachel I Please ahead. go

Rachel Frank

Thank you, XXXX operator. these under joining corporate Kiniksa's the Good A results morning, and to update. Media on our thank can discuss Investors be first our release & quarter press financial found and call results highlighting you website for section.

update quarter Tessari, Chief Ross kick on Sanj Patel, will will will an off introduction; our will Moat, As then also Chief first Medical Chief the John return our to K. provide ARCALYST session, and Q&A Mark for start Chief Chief will our Sanj and an the which commercial Operating execution; Financial for Officer, Executive remarks financial Officer, XXXX agenda, review on the Paolini, be Officer, our results; our Eben for line. and Commercial finally, Ragosa, with our our closing Officer; Officer,

it our the please required that by this of law. actual forward-looking getting With as well results Factors Before cause and slide statements. as be materially to such I only to that to as may except be are A over making today undertake differ statements can such on turn from update found Sanj. note statements, and SEC and caption filings. that no risk statements of speak subject contained this these started, risks we the under statements in uncertainties presentation, review These of Risk as we factors date obligation will to will that,

Sanj Patel

our full report our ARCALYST It's first in to bringing everyone. the commercial I'm morning, today. happy revenue for and patients pericarditis. need. year adherence we've to adoption, on far XXXX quarter highly fully the a commercial that to detail. to was really been so we We're will with for We're with prescriber also $XX.X recurrent since coverage. overall, this steady performance payer in we've results pleased quarter million. XXXX of cover ARCALYST incredibly opportunity. happy the growth patient maximize more And the made and and Ross plan review ARCALYST and to by commercial date, delighted launch been in first of ARCALYST the I'm of Rachel, encouraged good progress for net Thanks, obviously in growth really the

portfolio launch, we even the to include and more most focused placebo-controlled the these programs, nodularis. Vixarelimab, we're stage mavrilimumab. addition dose-ranging helping enrolling with KPL-XXX in building Vixarelimab, in In and our dosing IIb a patients Starting on of remain value currently from prurigo randomized and clinical across and study Phase

We the expect half this of from second in study year. this data

of where dosing KPL-XXX, characterized is is and well not other characterization, to dose concept but disease which signal of primarily only provide evaluate our enable a with Phase proof autoimmune our and stand PK and arthritis. The a CDXX well-described diseases. will could optionality a the range enrolling in program, a been a rheumatoid as potentially in This in study For population. study efficacy has patient response chronic administration XX-week II also of trial to early we're designed an is

the clinical in rare which, encouraged been we development recall, implicated. diseases, this GM-CSF multiple potential, been highly For has evaluating its data currently as by demonstrated broad mechanism We're you remain has Mavri, indications. positive cardiovascular by where across

our growth. well development positioned believe entire we active other commercial in as opportunities to infrastructure and business continue progress also on as essence, assets with synergies portfolio, be are our efforts, in our We our tremendous the focused for well pipeline. have making In we very that existing are which across

I'll commercial with performance more in our review So to detail. that, to Ross over turn it

Ross Moat

generated our in with the on generated typical in year in market impact recurrent sales, can you share positive patients of ultimately, the of of net with are our us be bring growth to growth QX are We're payers $XX.X experiencing spite now XXXX and and from we the feedback this XX% in to sequential the drugs the experience start seasonal XX million to that the Sanj. extremely transformational and associated and months This pericarditis, versus generating Thanks, gives is ARCALYST growth QX the we're year. continued to Concluding by date. continued we QX. launched first $XX.X momentum have million disease. launch will headwinds full prescribers, gaining sales pleased trajectory, that of close who specialty represented excited at we've and

identified growing our a efforts a resulting ever-increasing We physicians full to in continued awareness cardiologists, base. This patient. patients. $XXX prescriber of for have prescribing dive and On have increase to of account our at net base. of ARCALYST, patients prescribing to the of the as the pericarditis will of enhance now pericarditis around in experiences on QX, as revenue. of than we growth in XX% for have Slide guide prescribed Repeat the Into to saw into absolute detail who more X, recurrent having and least XXX prescribers and one to number continue X prescribers. the million. well I individual behind demonstrates we revenue million prescribed predominantly for the depth breadth the increase continued the an between also positive We saw are physicians drivers Furthermore, prescribers, year or more who $XXX recurrent more

On seasonality population new requiring patient we payer in substantial our plans I our to a see back the the as the of number insurance very bridge of commercial segments supports XX% these Therefore, a patients in payer totality. we almost rates approval in goods to on quarter. in mentioned came continue program. QX all interim and QX, rate free approval issues, switch Nevertheless, a ago across therapy approvals moment high on a resulting all saw side, regard to insurance typical during

since have adherence, time, still we a we is ultimately long of continue timely therapy see we so around In quarter, terms of our time remain to therapy small and X-year on of commercial to today ARCALYST remain But scripts. refill the end the on launch, realize patients the compliance continuous do at we cohort continuous QX. know been have first who need launch duration, robust determine patients what and patients of the who will we're just of early launch We throughout those therapy. that stage the more about how on in started XX% at this

treatment hand While this will continue continuous suggests durations around XX months. to limited data on of the evolve,

right-hand treatments we recurrent slide, recurrent experiencing to on delighted compared well research very high on Additionally, satisfaction care product conducted that pericarditis. This to recently of as of are this ARCALYST ambition of speaks that patients especially you prescribed. been ARCALYST, in side can satisfaction see standard from have market and level lower we're in pericarditis becoming our of hear when a the to other the

for disease activities. Moving to and Slide X, we're promotional now pleased us to avenues for see awareness open renewed

professionals. their in pericarditis time of ACR face-to-face. a wide now ARCALYST, knowledgeable ACC significantly prescribe increases. audience the and dissemination delegates the bottom November, pandemic, with main booth, more our COVID-XX XXX our product The on over are or to And first attended physicians we're subsequent since meet ARCALYST recently care ahead AHA, with results splash additionally, likelihood with resulted the of health the force, also show have big delighted XXX ARCALYST now we and in reach and which available the April, from from see recurrent with following to over we opportunity deep the commercial this theater. individual aware we in slide, to both details a horizon and more field and our We attended of we in opportunities so for become and months as launched these In made to For the data you intent conferences and research physicians. significantly conducted interaction right target

to Moving like starting in pericarditis. become standard XX, of information how to Slide care is recurrent the share to ARCALYST on more I'd

nonspecific RHAPSODY, is they fantastic generally of to are key XX% of patients step with have to in the in acknowledgment worked plan interleukin-X payers for of global drug our Since patients are treatment. the not pain now to $XX.X so space I'd Mark to new final the that a our these on, addition, generally corticosteroids ahead. have net no like us And anticipated this bring recurrent strength our are NSAIDs the to thought ARCALYST our providing ability of how from the symptom in inhibit launch, we've one standard alpha treatment and cardiology if utilized empower of that In feedback ARCALYST the to to become is of delighted hard of the of in that pericardial is my cracking XX% III Phase look ARCALYST example quarters and are for and new in physicians in sets recurrent Mark? but out or therapies. days set years a It's now reports constant over ARCALYST for a an from forward prior and we from emphasize starting ahead to of publication continuing and patients and need. patients data of our driver this financial We we who positive is start. patients pandemic are take we mandating And had are the improvements of slide, now been on teams a for field, a contribute of beta, minimal the rapid relief, from we in RHAPSODY payers and treatments physicians and at the choice publish We're ahead look payers launch, continued will growth intolerant. recurrent who approach. and this to I'll in helping evolving ARCALYST in office successful even of underlying believe to of recorded from resulted Kiniksa foundation a pericarditis. specifically a we're pericarditis been These incredible of support to rare treatment the and colchicine incredibly how launch, ARCALYST risk hand edits the performance. and which and under the in data promotionally. moment as positioning exactly in growth paradigm. that Following on the midst ahead thank see of our use results. summary, well are And and they our care revenue. An recent we to have is we've year leaders if treatment steroids. experiencing course, experience do steroid-sparing have patients. being appreciating Indeed, disease XX% a embracing reduction current and to we see study, We've data recurrence, a this solid up which expert their specifically a million pericarditis, feel the published pericarditis in

Mark Ragosa

morning, Thanks, everyone. Good Ross.

the today. detailed earlier be Our XXXX release results first can issued found press quarter financial we in

couple like next of to this your few slide. a the I'd Over minutes, on items call to attention

First, be representing life $XX.X in payment rights in will million, the mavrilimumab and Huadong revenue sales region Huadong first Pacific the quarter for total the note, XXXX Asia upfront revenue -- $XX product collaboration $XX.X rights ARCALYST region. consisted deferred of million the the was million from of for the agreement. Asia $XX Medicine upfront recognized and in was Mavri ARCALYST the the million, of Of payment representing and of net Pacific from over of the Medicine for revenue of

Second, compared this XXXX quarter cost year first operating collaboration also the sold expenses, and the first goods to of which $XX.X included were XXXX. in $XX.X in million of million of expenses, quarter

back expense loss in $XXX of reserves expect ARCALYST Third, XXXX ARCALYST first first we $XXX we X and approximately region. of I'll of with $XX the million. net first and not $X impact the operating And the finally, an our million, the this million And call ended and based revenue on our $X.X Kiniksa's quarter well obligations of to cash compared Fifth, collaboration XXXX million. execution, expense was million loss of cash $X.X financials fund split continued as With that, a Huadong in ARCALYST Medicine, our million, to Huadong net were and of XXXX the the remarks. XX% expect we as be Fourth, cash closing of collaboration plan expenses upfront consisted from reflect and for commercial payment representing Medicine quarter Regeneron, at reserves million least the $XX.X able quarter to net year. of Sanj last period million rights year in to turn into profit total XXXX. from do in of current Pacific ARCALYST between Asia quarter of net first to million $XXX the for $XX.X with

Sanj Patel

Thanks, a really sign Mark. Kiniksa. In essence, exciting it's for

in In as foundation addition commercial and to modulating therapies. recurrent in emerging immune an the pericarditis, leader we're launch building successful a start also

X after already On the commercial where is profitable. heard revenue quarters, side, only collaboration ARCALYST producing you've and the

additional XXX% the program, autoimmune our Vixa also rest for represent said, and the with IIb the of in million year. which enrolling trial II estimated to this guided, optionality a $XXX study we've net in year-over-year, could coming RA Phase a CDXX Looking of provide we've growth milestone proof-of-concept got revenue with the million as Ross second more diseases. We're $XXX Mark, of from range of Phase data the year, than this the an of and would near-term a half to up in

earlier, said infrastructure. evaluate cardiovascular our also program diseases utilizing cardiovascular rare data existing the I with Mavri we're from commercial our have As synergies to that

as we at have our continue we're our operating fund XXXX. and well drive least need to and capital reserves just is plan The expected to forward. line we said, no Importantly, bottom raise into have to Mark portfolio at cash additional this point, capitalized

determined we're through aim and you. of very I Thank With focus. interested our questions. for to to goal we hand to help additional in you augmenting remains I'll the key need I your also our That a continue development to that, assets to time help activities. mentioned open it a our pipeline Ultimately, to today, value earlier, becoming in thank business patients fulfill company. massive As generational potentially much with to and up operator create for want back are

Operator

from comes with our question of And Anupam first Instructions] line JPMorgan. Rama [Operator the

Your line is open.

Anupam Rama

plus heard And anakinra one your much target I has to the I'm is new be prescribers? how understand prescribers? script an so you coming XXX which Or initial patients XXX is plus will question. from you for from XQ repeat grown Hey Will A where then be months. new What remind which taking for? right me. coming that some of Thanks update. XX have know can second guys. guess long prescribers have the said to quick I portion for penetrated? subscribers you from. they -- the trying been us a on in from scripts question, We've written XX now,

year XQ So how do staying you here think about that XX% of patients on on therapy in 'XX from two? therapy

Sanj Patel

to or Eben with Thanks, Anupam. Ross, you do want that? And start can jump myself in. John or

Ross Moat

happy is this Anupam, Ross. to. very Yes,

base. So launch since the pericarditis, of depth more XXX individual that's the currently so growing you're roughly the substantially prescribers absolutely got of grown more unique XX% or we recurrent XXX ARCALYST of of launched announced XXX We time with XXX than far around in quarter every prescribing since right. in than we

that. with very So pleased we're

of our of of is target's comments most the kind base. prescribing current around terms your the coming not, or I physicians it's from mean, In the target whether

of know, and recurrent launch, really As we lot and pericarditis we a -- around which time, understanding looking which you spent who have are prior after a highly looking we're that. approach targeted physicians centers to patients

base. to that very is see coming So the from target the pleased majority

the pericarditis U.S. all with we reaching recognize Although strategy. that also targeting across the recurrent of patients not we're our

us does at as promotion non-personal through incredibly continues So to that routes we be as to and important other congresses make well. contacts the

extent. to there a of prescribing a mixture well, lesser is non-targets but So as much

that as In for script. prescription prescribe months XX right. terms prescribers an comment the the initial of your XX-month majority see ARCALYST is of duration, We

as the months renew that the approval. also patient to approvals indicating yes, the for the Some obviously majority for with Linked majority they at that in well, want after time often months. XX well, may ARCALYST for are may reauthorization see that they that to or than after as X-month that. payer new prescribing prescription a the X-month requiring they're clinic XX a of period, in the of prescribed when before and less particularly But

as of the data through what information side of again cohort, the small need over early looks QX, bodes robust of the around evolve, a to provide like wait the will duration months, continue XX see builds kind confidence it's were and of to curve duration. we actual that number to XX% acknowledging those time patients well get to So a also on of and potentially able eventual said, more patients of see duration. the to that which more still time that into around around QX potential kind point to therapy be launch of right-hand into although end And we being the

Operator

next comes Sachs. Goldman from question Our Paul with Choi

is line Your open.

Paul Choi

progress of think QX? has, your payer indication I the was processing if was in been for how Which it on in market dynamics. was, little here. more How about due while. course, elaborate to on new the the wondering dynamics I think you continual a comments can caps? regarding And maybe QX of I here future Congratulations should we versus much versus a on the guess, RP ARCALYST

Ross Moat

this Paul, again. Ross Yes. is

opposed now, vast are majority at of out, with So to continue does recurrent commentary majority of patients we other CAPS, the and same this indications. exactly through recurrent way the launch, XX obviously, the of continues in patient months around recurrent now ARCALYST as pericarditis. that think in patients services to our as support But on do X the I stage program our yes, we DIRA the those pericarditis pericarditis, as vast

plans payer insurance greatly more the that payer supporting through patients people and renewed for mean, pericarditis. insurance through I well get dynamics, the the QX to approvals So help really support people around the with And that's that new as payments and down and associated the yes, time it's recurrent plans as co-pay once as increasing they point well. Kiniksa bridge changing under

headwinds and things expect So we dynamics see QX to as or beyond. and kind we normality the in of QX transitory, there to somewhat return

Paul Choi

Thanks I can up of frame of here in about landscape? for you Okay. in somewhat is then think the category? competitive the about guess thinking in a regard a what a the other the of would result half focus coming be with versus sort Vixa. maybe question to pipeline how crowded what you're as sort of And given you'd to on data given areas is just you one assets And year, second how lot. some just what would clinical stage differentiation the

Sanj Patel

do John, Eben you Paul. in? Thanks, start? want jumps then maybe to And

John Paolini

Sure, happy thanks to question, so. And do for Paul. the

So yes, being so meaningful of Vixarelimab of of points as the concept but in significant, of also already of study as highly proof in Phase with well in terms clinically outcomes the and IIa prurigo nodularis secondary statistically lesion you remember, end resolution. demonstrated terms pruritus as primary reduction

is a the study IIb test XXX that's Phase the practical patients. this And to just purpose of really monthly dosing. purpose the of subcutaneous So with for study

So that resolution, lesion that weeks blocking longer over which been Vixarelimab implicated to has pruritus, regard in in reduction patients of gather with oncostatin and XX as of action dual sense, as dual so in know, has of M, which, hyperkeratosis information terms as following which implicated well pruritus we in a blocking important also will only interleukin-XX, mechanism is mechanism. fibrosis, not but you

talk turn competitive to it landscape. I'll about to Eben over So the

Eben Tessari

that Phase incredibly versus that our add competitors I'll replicate maybe data in is currently study that Vixarelimab able we the are to we we've other given IIa out main just the the of the of if And monthly positioned date program running, with dosing IIb generated field. the the two well results John. we're think Thanks, Yes. to

Operator

line the next Securities. Wedbush Our Nierengarten with from of David question comes

line open. Your is

David Nierengarten

wonderful franchise. see. profitable the on It's Congrats to

might they questions patients commercialization. the word, and turnover, there recurrence a Just a of And they're feel on on related treatments on note, there -- who I maybe prevent them are off I the or have a hate any prevent handle are are of a so that pre-existing the on conditions handle, then or The you other do essentially, have or should won't couple have the on or really patients cured used. have -- therapy? say, do coming would you of the use that are have dropped feel patient or better in to some them proportion that but who patients going from a of steroids

not go conditions long-term notices they're patients, doctor maybe their to underlying that ARCALYST. -- they with recurrent on and episode the first they they these so and but steroids have And treatment aren't have amenable so

Ross Moat

is Yes. this David, Ross.

a can So start X maybe on questions. those I take

the firstly, patient So turnover. around

launch, a point and condition their whether that that believing So it's that's some somewhat therapy, we've stopped that patients particular disease in through they shorter they stuff are yes, the needed seen obviously, or are patient's at to to through came a duration since they time the of -- time the they have and in well. and then as belief stop over able trial the whether trial the physician

will ultimately, that some most of coming on well do data So another have short. if that published, therapy as the of although know seen a symptoms And into is time aggressively from stop what RHAPSODY or that in well the get flare. enter also back I we and they therapy recurrent we percentages well, we've think patients on recurrent period. and restart trial for duration they are again pericarditis, as the restarting on show kind is symptomology to patients see to back therapy too it's pericarditis the if longer patients And pretty rapidly then if come degree, and remain can happens

restart several seen patients we've well. as So on therapy

and of that. towards the treatment to of and the their against appropriate really to the it's duration that if the stays based net, a patients the baseline them of know matching that the therapy and guess, flares try duration stop history guide I severity patients physicians do they characteristics too But for be natural early. for what good main cadence and judge of upon ultimately, as the the patients disease the the physicians and So would course safety and

of best preventing looked conditions from them who this probably we've On something of that have amount. the I solution it's the for mean, steroids patients proportion not that not acknowledged steroids, side at huge think widely it's of kind disease. type I the preexisting a are of

also that to of -- on being effects also patients. the very being long-term on really steroids can It's or patients. increases back high-dose steroids when know to be well risk being you recurrence one take We the that steroids go patients steroids for square toxicity detrimental the published off these and

So we time this, People becoming want think that's targets the And they're what to ARCALYST waiting cause in that. more launch. seeing and commonplace answer avoid and on as more we're best understanding I the treatment of disease. the field of here the root since the are

of generally, of of mechanism more the pre-existing the conditions, first to understanding is around. so because the but treatment patients treatment getting right time the disease and on addressing underlying ARCALYST and So it's the that not action

David Nierengarten

frequent ARCALYST Got follow-up. on maybe one or the rather to spend, And additional to market On two maybe patients recurrences? more incremental are marketing, less the it. to quick acute who then or of three spend sales do anticipate things any than continue maybe and prescribers you side

Ross Moat

Yes.

make that do or so to please and Mark feel I'll else if So on as in, jump free start to maybe wanted obviously, a anyone well.

could areas, other we looking the we the address pericarditis data-driven a value all more at. non-personal will launch possible. always our always team look and that we approach the promotion to we're at had methodical that prior constantly very whether right in way the We're something stakeholders. obviously best in sure to ultimately, opportunity, addressing a patients and market, so to of many reach for team many to how continue always mean, recurrent so more correct, as field driving future, at did We've field we that and things the be maximizing it's promotion and always make look side means, I for as work Kiniksa, opportunities, most something And the evaluation. under So at in congresses, efficient patients we would get that then looking lot the of that non-personal of for

Sanj Patel

a excited now obviously, continue I it you right a been bottom growing think well, we're we're of Clearly, the set and work is, Ross. about I opportunity. doing said it, very very on but commercial mean And a great it's execution analytical at of the it's opportunity. look to line side. lot

So is very focused so looking there that. I at increasing that. we'll and much just But think on you're continue to opportunity definitely right, we're

Operator

of Our question Geoff with Bank of America. comes the from next Meacham line

Alexandria Hammond

Hi, this for Meacham. on Geoff is Alex Hammond

So you looking for given just you get Have you what general cash color strategy? depressed all? are qualities to to your assets changed you have on at in your additional provide appetite XXXX, valuations can mid BD any And the besides being in your wheelhouse?

Sanj Patel

obviously, the make as It's into products well. us said, now below on I'll there's right about position, as -- right. of jump feel free are XXXX. that's lot there of a a our that, we you're our Eben, on out cash very But execution -- clearly are it's couple continued undervalued that trading of and to relying comments, top feel that which valuations obviously, technologies And obvious commercial great cash. and and Maybe what in. But you allows to get at least depressed

very there are So that augment in ways some immune-modulating to products we're the to pipeline. our look could are keen certainly great at that add. We've we products technologies space, got but or

of disease with we we've full of shown now year experience, to at infrastructure keenly. a as here as be Obviously, can got commercial a as would obviously but lot very that be adaptable. well. great synergies able that's But well a our pipeline for have it we've team that Ideally, with looking very we're well. existing development our So to execution rare execute as it commercially that commercial

bring of And time company for and have and stages from value We opportunities development paper, looking rare a six own to and like as But our know, business development. at various in well, looking nice. can do research years blank you primarily where just open the those and programs. piece this having we're looking of of around immune-modulating created across So it's other we're as Most cash certainly exciting products technologies. we are this franchise at the an other space. team through diseases ours, for in execute a is ultimately and early-stage

judicious. we'll is important us. are But to So you very having important, add? well want to that obviously, Capital too. be that anything But are Eben, allocation very realistic values as

Eben Tessari

you nicely. patients, think and It's always really looking. I to said about really maximizing we're it No, value

Operator

of line Our next with question from comes Evercore ISI. the Bayko Liisa

Liisa Bayko

looking Most but about can around talk you. year? little my historically, answered. this a just one, should thinking have the year? R&D But we seems bounce be how bit, expense for R&D the of maybe of Thank questions this of been about Just you shape shape the it to

Sanj Patel

give -- so ahead, bit jump Mark has of in. Mark, go I'll muscle a memory,

Mark Ragosa

Liisa, resources there's where our now regarding much think allocating I don't beyond publicly. what comment right we've on disclosed we're to

So is the XXX RA. the -- of in obviously, And the and here the R&D front, clinical of clinical progression key the of ARCALYST the really, on commercialization trials Vixa really R&D. trials PN of timing and to

of IIb the in end and I the we sort of half the sort XXXX. RA just expected as So of year, the the mentioned, final Vixa trial second stages this of Phase of in is initiated at were

Operator

Officer. to I Executive time. I'm conference the at no Sanj like now questions Chief this back to showing turn would further Patel,

Sanj Patel

our we look move Thanks as updates you a that joining sense call the providing into questions. definitely all the excitement the for everybody obviously, we for much, operator. hope we've I to got year. of forward got very the Thank And today. all rest additional of and you

certainly said we've a Ross and start, execution intend eloquently appropriately, commercial had to cracking very think going. it keep that and we I

Thank let's you, everybody. crack So on.

Operator

participating. today's concludes Thank conference This for call. you

now disconnect. may You

Kiniksa Pharmaceuticals (KNSA) 7 May 222022 Q1 Earnings call transcript