KNSA - Earnings call transcript Q2 2022 | Kiniksa Pharmaceuticals, Ltd.

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Operator

Good morning and welcome to the Kiniksa Pharmaceuticals Second Quarter 2022 Financial Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you. to to like of Frank, now IR. would hand Rachel over Head I

Rachel Frank

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

and for session agreement for update to K. our As provide results; for our with XXXX Eben Medical with Tessari, our Mark Chief an Q&A to financial commercialize Ragosa, Officer Officer, start for closing develop global kick-off also the finally the Officer, Paolini, Ross second agenda, announced line. Vixarelimab Genentech license John on our Patel, Officer, our commercial rights the on which Chief will will Sanj remarks introduction; will will quarter our Chief be and execution; Commercial and CEO, this review return then Chief our will Operating ARCALYST which Sanj Moat, will and Financial review an then our the morning; we

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

Sanj Patel

updates. really good and I everyone. key to talk Rachel, Thanks, you about two excited today am to morning,

II terms payments. announced proud a potential detail, to cover of global unmet license our the work of Vixarelimab. agreement its including in Vixarelimab but the of First, the agreement more for to patients and We program million underscores we to with through this as the across studies. from the develop receive in We opportunities cardiovascular expected preclinical potential Kiniksa franchise. help Roche We're will and non-dilutive as to portfolio, mechanism, advance rights and Genentech plan well under morning, $XXX to expansion with our near-term the serious to Phase towards the differentiated stage commercialize deal, a the received Eben upfront need. capital transaction from the our ARCALYST allocate synergistic believe clinical

the on XX% We second ARCALYST net I'm to happy for for million, growth first $XX side, that of the second over representing XXXX. our approximately really was quarter Additionally, of commercial review quarter reported quarter results. the XXXX revenue XXXX today

infrastructure. of on portfolio we've continued in launch shortly. more cardiovascular pleased since are expertise by with we the We recurrent to focused and additional review investment cross-functional and Ross and will pericarditis seen momentum detail warrants our the in The performance franchise that expanding are very date in ARCALYST leveraging our our progress strong

implicated. by this steps in weeks. been multiple the XX for indications. has potential, already highly remain encouraged broad focused to cardiovascular which the mechanism KPL-XXX of remain diseases and clinical building demonstrated stage rheumatoid for portfolio clinical data over best And its dose our subcutaneous Mavri, value next safety of which include in We're where the development by across clinical across on assets, arthritis, II trial the pharmacokinetics positive which We're of dosing we addition, program. has maximum rare is In Phase a CDXX response, efficacy, evaluating designed the we finally, GM-CSF conducting KPL-XXX our been evaluate chronic

more in to global licensing it that, with our you, turn to Eben. Eben over So and with Genentech to Over review detail. I'll Roche agreement

Eben Tessari

Sanj. Thanks,

to clinical to proud prurigo the Vixarelimab incredibly this data As million our to and $XXX payments disclose The plan incredibly Overall, in licensee. is mentioned, receive in advanced Roche trial. royalties upfront for to we through asset fields before and and fulfilling this development completed partner upstream we clinical are will it the believe that, and preclinical future eligible and certain to Xb With approximately Ross study. review announce nodularis with was to through to for potential performance with Vixarelimab. near-term of trial not net maximize milestones, $XXX patients half received XXXX is and Kiniksa and to will company from complete studies Vixarelimab. we have all of Vixarelimab excited Along to Genentech global right Kiniksa are agreement. up are regulatory sales-based head second we of milestones and the stage receive the obligations just commercial in this in of turn truly clinical our in our commercialization and we eligible sales. screening rights the Genentech development Roche X obtain more I'll Phase on million the has detail. over

Ross Moat

Thank performance on and to quarterly pericarditis. for plans you, I'm our pleased Eben. our commercial continued recurrent growth Thank you. share information in further

to detail patient the of we led of for drivers physician starting pericarditis, we million to revenue, You've to and net $XXX revenue the in or and with XX% represented strong XXXX. to that heard quarterly million XXXX, pericarditis behind $XX.X identification a on more another million QX On $XXX Sanj growth. which Slide will resulted guide of of I recurrent and XX, first half totality recorded of into range the $XX continue revenue net dive from quarter recurrent growth QX In demand a by a million growth of $X.X million. driven in the

and to to grow, jump greater have this number prescribed And XXX the we quarter. As ARCALYST to of awareness getting for a therapy. pericarditis that result growth prescribing will ever who the prescribers very we inflection see is that trigger XX% does patients. than their identify we've Therefore, around supporting their access additional We're patients. on continues we both that their confident they physicians in side have to base high Since can prescribers two or patients prescribers XX-plus experience, prescriber to very this percent will be QX, cardiologists. more by because are we of that prescribing recurrent prescribing payer the since of for patients patients of that when prescription physicians note, ARCALYST, excellent It's rates closely This for ARCALYST. journey approval launch, so of who now is seen in per on believe We saw XXX and total the relatively too prescribed continue further And the an in starting through therapy. many see also base appropriate in were access crucial increase launch. to throughout new physicians mark. see next experience on biologics still their

and duration, through prior XXXX to Most and insight XXXX. around of to payers approved still months. to launch of XX the from most will therapy earliest XX XX% evolve, for while therapy. continuous being around QX driven has prescriptions a terms months adherence hand therapy on reauthorization, strong of In this on being the continue treatment durations This data of patients those written to end XX months QX compliance continue by of reflect continuous for

indirectly, and to continue we satisfaction debilitated the greater than ARCALYST very to a and transformational received XX% from is from suffering flaring ARCALYST patients, rating on directly this high disease. patients hear, Lastly, benefits making

Slide launch. as XX. excited Moving what since about why discuss to as ahead I we've to learned well want we're the potential

or and disease more to-date given launch multiple brilliant a opportunity ARCALYST recurrence. There utilized label, we had And it in we've the recurrences could be well. one any XX,XXX are First, meaning know in after patients, year. earlier two given the even broad recurrent

a and of opportunity cycle. very early we're So huge have ahead we the the life in days

positive research, see helping a patient is adoption pericarditis our to prescriber increases Second, customer From who and in ARCALYST will months. more of create of significantly and that their of aware the field the force significantly the to in and with coming grow with representative become months recurrent we physicians met ARCALYST the experience. knowledgeable driving stating prescribe subsequent and or and intent their that XX% ARCALYST very prescribers, have likelihood

Third, of pericarditis the the pericardial volume our to accelerate penetration believe given success physicians, are modest. present team a small and Even that recurrent launch Therefore, patients increase that reach that coverage patients physicians. and patients team. diseases. our This is our to us each physician by means within our different this strongly field makes plan impact and faster. expanding will the there sensors same reach – positive the lead pericarditis allow the market taken can when have field ultimately dispersed dedicated on quite We to we since from who and relatively recurrences number are institution further only sees on

will to XX. Turning evolve our field we to want team. slide I how outline,

launched a field reminder, who have execution of lean approximately in As and been the with focused targeted we specialized team experienced highly This and field. a XX cardiology motivated delivering representatives, drove team quarter patients the enabled franchise, launch. the the profitability in cover of rapidly quickly us around towards remarkably of we we to recurrent and for XX% which pericarditis achieved third

grow accelerate we have field need switch on in by and well In from QX only Since population. the to target aiming of evolving team learnings calling health our our on XX professionals launch, representatives Now we're of as launch, around growth learned XX base entire recurrent will importance to the pericarditis teams maintaining to this of since year, care who to our to as our while actually XX% to profitability. repeat be cardiologists the the plan doctors. around approximately we and cover X,XXX opposed able of individual

is, really greater of cardiologists reaching with decile accelerate doctors. wider the adding managing Additionally, The frequency patients. ramp will initial create since are a approach also launch. we're only our lower to cost-effective a our of audience reach doctors as not recurrent bottom to growth with are sales exciting who inside This our of we decile a small ability line representatives also but some high pericarditis will pleased team

the provided summary, of lives launch, and transform beginning of of to more XXXX, and with appropriately Physicians a that's now patients the positive to full have investing have to extremely react we've targeted net the a seen and an Since continue revenue to ARCALYST first the franchise very the franchise. the sustainable $XX.X a In million treatment profitable and patients the we we're we $XXX In believe to and growth even year. payers We robust of designed million disease. recurrent get pericarditis and profitable $XXX positively underlying at guiding half treat for steady diagnosed – recognized we're quarter-on-quarter. driver can more opportunity to to patients of availability extremely further sequential trajectory a in we're continuous quicker. million

and faster stronger. to We are field team evolve very excited take step QX, to better our become and the in even

over Now, Mark hand financial Mark? cover our I'll to to results.

Mark Ragosa

Thanks, everyone. Ross. Hello,

detailed your like release second to can XXXX found today. quarter results the be to There are in a attention items, this financial morning. call Our press earlier issued we I'd few

product heard million, have you recurrent quarter revenue grew pericarditis. as primarily sales in XX% $XX First, ARCALYST due to approximately the sequentially in to second

second based profit approximately was Second, $X.X $X.X the approximately collaboration quarter expense million million. ARCALYST of an collaboration in on

Fourth, operating respectively total million second second ARCALYST the of $XX net remarks. the with execution Huadong the our of this at continued lastly, sales Vixa least global from quarter operating $XX in Medicine. expenses in and $XXX programmatic and current and these our a Third, we capitalized the fund improved And both year I'll receipt remain the approximately payment RHAPSODY second this expect Mavri morning of were call million decrease And conclusion the lower of combined ramped we balance license as with the at back as Sanj commercial with as with for at year-over-year the ARCALYST our loss quarter well agreement cash of trials. upfront proceeds the net XXXX. spend end turn $XX.X quarter million and plan were to to approximately and a that, into from million well collaboration announced cash with the with closing reserves

Sanj Patel

Thanks, Mark.

with building also on commercial continuing emerging In across immune We're as in we're cardiovascular as and focused our our to the our portfolio leader successful to an line modulating developing well expertise therapies. existing recurrent foundation infrastructure. as execute addition current a portfolio, in launch pericarditis, in

to collaboration On the be our as and Ross commercial revenue we're profitable. producing continues side, ARCALYST said,

the net $XXX rest to the estimated million $XXX an is year, guidance to our Looking revenue million. of of

our Kiniksa close he our the are Mark Genentech, to as are least And help massive vixarelimab financial cash with Roche global we Importantly, continued at are deal Ultimately, XXXX. reiterated and ARCALYST, time thank well in at questions. and to for today value is the a aim capitalized. you very in to of performance said to that create expect agreement into commercial your reserves want company. I in generational of for With to fund and license to the as operator need, that, strong becoming back our it determined hand With goal position. all we fulfill continue patients and a

Operator

Thank line speakers. from [Operator question Instructions] you, first Bank comes the of all Your Meacham of Geoff from America.

line Your open. is

Jason Zemansky

Jason questions force, ARCALYST some so then, sales that number of dynamics. sounds as what beyond and for patients points broader Good kind bolus on Geoff. key base think hitting the near-term is I like, Thanks a our think so Thanks you there? of This for on the elaborate the drive was end hoping levers near-term morning. of opportunities the maybe to on congratulations move here, much certainly acceleration? It expanding you're could to on what of that XX,XXX a of here taking maybe you but are about of could potentially the some you much. And more are initial quarter. an

Sanj Patel

Thanks Jason. you for cover the Ross, Thanks, why that? question. don't

Ross Moat

Hi, to. for Ross. This Thanks the happy question. is Jason. lot very a Yes,

the and time, of key I really it's prescribers that prescribers. I'm repeat really execute we the the previously lot kind looking previously, on forward we're and unique as first have, that to same focusing at the metrics those of of think of number we So, number the at prescribers continue the of for driving moving number a how

QX, very a of out on physician lot both a and a focus identification. the side patient rare really disease the the in continuing and This adherence, and keeping to Of compliance, patient eye on keen education drive activities we the have flaring course, have to and trajectory is far field focus growth. we had really to into pleased a XX% that and We this need execute. like we've boost a try education. to is the really growth continue and We're we feel with to nice so

Jason Zemansky

you. sense And that the that reach sales can or their out is prescribing can sort that team more of gain ARCALYST once do? there something experience, Got they a base, build and kind prescribers that to of is that colleagues

Ross Moat

a has been hoping and by that great not That's the that prescribing point. base It's much going cardiologists we have Yes. be are forget seeing that I No, we're a many that the to biologics something in let's thanks. we're And fact very case. fairly think, so is already such up new broad and parts this taken still to cardiologists.

have So, experience prescribing not many of had them before.

and once continue So clinical so as the to about better. that able the the education hope from they we side, they patients And as achieving better effects doctor-to-doctor peer-to-peer, share patient and hear they experience identify so. the do on results patient, the that do we a are to are as when back well that share our well. of experience get and the And

the that's vital country. across think all I

Jason Zemansky

color. Perfect. the Thanks for

Operator

Jason. you, Thank

line the Anupam from Rama question comes next of JPMorgan. Your from

open. is line Your

Anupam Rama

the so guys. question. taking for all Hey Congrats the on progress. much Thanks

know synergistic it I opening comments, to proceeds from the but the in noted in I the transaction, be going you opportunities CV missed looking you're Vixa if that the space. for Sorry,

does maybe mean strategy So kind in much. which what Thanks or development, PR. so more around that does business is And on focused the of this you external include KPL-XXX? noted it around the Mavri,

Sanj Patel

it. nailed No, as you've Thanks, always Anupam.

seen Mark therapies, will looking well franchise very hopefully, all of much particular, to the other be top what this as within go But looking continues and existing Obviously, still in be portfolio ARCALYST. non-diluted in definitely, as augment BD certainly investing with So, very space. from as Ross at to potentially described we to strong. this definitely you've BD. that, immune-modulating described but deal our cardiovascular with well definitely will our on capital

be So it's towards very own to our besides to portfolio. certainly with go that, But that that. capital encouraged we continue

So KPL-XXX you're continues. right,

progress the with And excited own We enrolling that we that in and a asset fully rheumatoid is a more leveraging that's X much and continue to that and indications Phase the almost BD we're of again, that there Obviously, front, economics that which molecule for that pretty exciting. study, mavrilimumab, arthritis, think are at again, around this in that. we described rare about cardiovascular that that is We're and is that I as have. But we you again, as focus looking potential the infrastructure us. top very on in well. idea expertise potentially said, much so

is So fantastic. we're additional excited. got we've run And that the

said, XXXX. I into as So at least

Kiniksa. be time good to a it's in So

Anupam Rama

much question. my so taking Thanks for

Operator

Thank you, Anupam.

Your comes the Goldman next question of Paul from from line Choi Sachs.

open. line is Your

Unidentified Analyst

Paul. for is Thanks This [ph] Hi. taking our questions. for Roderick

for maybe Genentech. one-time so from the is a or certain -- a one be upfront first payment And have and amortized period? couple payment over that the Will we

Sanj Patel

Yes.

So in and come expect million there what near million some million we $XXX supply $XX what $XX term And near are upfront we've that term said the have is in upfront its that too. that then immediately. relatively essentially in obligations

So it's monetize of Mark, fund and that. how and can we $XXX upfront. really maybe cover And near million

Mark Ragosa

Yes. And the you for thank question.

stages the the I the still our think proper way details we're early auditors in determine to to recognize and here the working in here with revenue.

to more the line. that on front So, come down

Unidentified Analyst

just you rate Can what like And Okay. -- royalty Thanks. possibly is be that disclosed? maybe the another just can question.

Mark Ragosa

The rate? royalty Yes.

through low for the annual net to Genentech on financial licenses. mid-teens. from obligations range sales the agreement royalties that's double-digits the So our to dealing And

Unidentified Analyst

maybe And pipeline. last the the just one on

for current that looking areas is mentioned priority your now? just pipeline probably what maybe BD you're into? you the one And of that So your on

Eben Tessari

the question. for Thanks

always And a we've opportunities. happy Looking opportunities high that's so. have your look incredibly lots being in. opportunities. said, valuable with investment we incredibly is trade-off new for in remains why to in with we It's incredibly patients. as between said in continue we're the have That an think external. investment are bar exciting many we're at all investing in own there that at and to the And we larger we have high for invest incredibly benefit of active bringing something well, do things versus we an highly bar -- portfolio and pipeline, have of that our historically programs pipeline if that bringing But that we'll think we to

Unidentified Analyst

that. for Thanks

Operator

are the you this to I over at back call questions time. speakers. no Sanj Patel. all turn There Thank further

Sanj Patel

Thanks operator.

way and of continued everybody the thanks also excitement We're here. again, this and get a deal. got the today. about joining Hopefully, the Obviously, for questions progressing the we've execution around ARCALYST, the So, the you call very excited pipeline. sense of

look throughout updates providing we a So Have great forward additional to day everybody. Thank year. rest the the of you.

Operator

concludes This call. today's conference

You may now disconnect.

Kiniksa Pharmaceuticals (KNSA) 5 Aug 222022 Q2 Earnings call transcript