Earnings call transcript Q4 2022

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Operator

Good day, and thank you for standing by. And Welcome to the Kiniksa Pharmaceuticals’ Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded.

to Frank, conference Head like speaker to now Rachel today, of would hand over the your I Investor Relations. ahead. go Please

Rachel Frank

Thank financial our under Media highlighting results these And Web everyone. recent portfolio call site fourth Good can press for and and section. operator. release A quarter XXXX Kiniksa's our to & be thank year the full results Investors application. joining discuss you, you morning, found on

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

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

turn Sanj. will to I that, With over it

Sanj Patel

continued reviewing XXXX, and and full XXXX good growth XXXX. to across we morning, financial which for everyone. results in success cardiovascular to our quarter fourth and In and year franchises, us our Thanks, continued execute positions today. autoimmune I'm looking Rachel forward

XX% sequential in $XX.X the The growth ARCALYST. quarter approximately represented quarter previous revenue million net continued of product we the side, as another QX QX. On growth represents commercial January, announced of for versus

of year million. we which net at million beginning $XXX.X middle the the guidance revenue $XXX in the million year, full Our gave to the XXXX of was $XXX is right of

are execution more by the with to on a we highly commercial depth ahead, into focused as provide patients breadth move year will with reaching base. and details expanding prescriber we're in recurrent more very We date. on of the pleased our And few moments. this Ross pericarditis our

portfolio in a is to antagonists also KPL-XXX, We focused chronic PK maximum rheumatoid of safety study on of duration efficacy, including CDXX remain a value dose XX over weeks. our subcu dosing Phase which stage X our is of arthritis, building and conducting response, currently We're which assets, the the designed across clinical program. evaluate

we second the where enrolled lead-in focused is cohort, program, we're of the which efficacy are now starting on now we and right first cohort of terms fully with In and third the this the PK final portion. and

of proof We expect data from half concept the study the year. next first in this of

be rare a diseases. We excited diseases. number that we impact a about to study pursue continue potential agreements to mavrilimumab with has cardiovascular to to This evaluate continue is molecule potential and the in collaborative of

And with Ross? ARCALYST. over to turn review our execution commercial Ross that, I'll to it of

Ross Moat

means quarter. sequential year, in year XXXX we net in resulted $XX.X quarter-on-quarter recurrent pleased solid on fourth growth The QX versus the net in revenue XX% our Throughout $XXX.X revenue ARCALYST continued further to to prior our representing growth This approximately of sequential was continued year I'm full revenue. growth our million. of quarter performance, million, growth a deliver full Sanj. you, share and Thank for details and commercial plans pericarditis. XXXX the

than which activate prescriber more for than XXX of pericarditis now XXX prescribers unique since additional and to continued launch, more new ever single base recurrent quarter. has prescribers a are growing team Our an there every growth is

We have is prescriber the and [plans]. for the who base having million patients continue or larger repeat achieved drivers been and outlines of population the approximately in patients. well a net are By revenue who by in we've total being experience XXXX, the positive maintained have on prescriber and two have the ARCALYST that prescriber is with activating base, on ARCALYST this the hear treatment. Slide some two we XX% that ARCALYST, a demonstrates X% target recurrent of This from penetration we received. of or X focused metrics end to growth. resonating had overall ARCALYST have target about more pericarditis both patients rate Since they prescribers key more laser where launch, have of XX,XXX of we this population considering written of $XXX.X

We a have revenue we and continue and us. opportunity to significant of growing meaningful have ahead

XX% rates cases approval quarter payer QX has The as every completed all of in since launch. greater remains than been it

highlight of next will duration on more is of XX the which in approximately driver at in important is therapy, Another months detail slide which I currently total. growth,

on they generally continues and once to the compliance time, with see than greater with Additionally, a benefits be stay throughout adherent patient that completed duration. highlighting starts XX% the strong refills on therapy

metrics room can we take Our the gross on I'd we're of a launch to net commercial what for previous All progressive slide. this continues to like moment I by healthy significant also total substantial points with and a extremely very X% achieve franchise. in mentioned and the therapy of overall duration excited be in successful highlight to metric to these with XXXX. growth, the direction

what after flares. treatment debilitating mindset duration, steroids and education treat in the to duration we the setting cardiologists disease is what Whereas then clinical treatment ARCALYST cardiologists. the from the practice XX% acknowledge restarting staying with on due This prevention treating advancing about in at the This ARCALYST trial years of two the and and a know continue XX data months where As and their duration toxicity quickly with across multiple for evolutionary showing with in and term of now We But longer burden worsening throughout with potentially of is and the to the that high of of this the we continuous complex approximately may are patients stop. recurrence and disease. to long US. prolonging the an evolve requires around time, rapidly suffer to disease focus commercial for particular in our the disease aimed past aim are approximately we're minimizing for over initially ARCALYST that this reflects throughout are XX% at the average months. on treatment we we now persistence but fairly disease is and seeing proportion results XX patients patients was follow the that more treatment continuously therapy believe periods total of the

cardiologists Our and to commercial We're execute enhance sales understand as enable and to around addressing patients target launch provide frequency having continuing therapy. XX well of how to more the We multiple our continuing many expanded on prescribers strategy the of broaden has deepening well our end a prescribers. will our focused prescribing of on beyond. comfortable the strategy to core repeat cause as depth as year, reach importance we the successful base to sales to of in believe become overall. target the pericarditis greater recurrent approach which last education reach a as ensure of been base now root calls force doctors we needed our with representatives, broaden targeted this and are At biologic XXXX our dual we by and with of

spread to focusing to built centers country. lead having and for throughout networks to We of digital plan widely their so when are pericardial on more are patients specialize these if patient centers creating the and We recurrence. where of the by to of make pericarditis advance who self-advocate advance local patients can diseases planning to patients have far wish their inroads next marketing, X,XXX management will diseases. the a who the education referrals stronger than we support in ARCALYST charge Currently, database into patients services

of at be also We evidence generation. edge leading the to want

For educating management. outcomes associated our on disease which severity focused registry of as the the is disease, called example, further longitudinal burden well appropriate with the and and understanding with RESONANCE, on as

that to gaining believe much access patients do the recurrent only resulted and first approved The has drug our hundreds that. FDA built therapy. with deeper XX, Slide We pericarditis for strong stage commercializing of turning to launch, to the efforts just for dig on we have foundations opportunity. in And is next a cracking us into

compelling. exceedingly are data Our

We have our ARCALYST, are with and are base. strategy ever who have field an Physicians reporting patients excellent executing positive and team we experiences an growing brilliantly. prescriber

significant With to year-on-year of between Looking grow midpoint our at to performance with to million. $XXX delighted ARCALYST We're are I'll about XXXX, growth and and very have a our commercial to expect This range. than million excited that the ahead. greater would $XXX cover hand the net Mark that, represent revenue to we financial growth results. XX% of over current our we

Mark Ragosa

Ross. everyone. Thanks, morning, Good

through review Over XXXX full year performance quarter financial fourth minutes, walk our I'll our and few the guidance. next and XXXX financial

attention detailed and few You find call in to our can financial release, items. a I'd information like to press your today's

total from revenue revenue of of as with of of revenue Full $XXX.X was quarter million $XX.X million, from ARCALYST Genentech. revenue our was revenue million agreements total Huadong our consisted collaboration $XX.X agreement million, $XX.X consisted revenue of XXXX as license with First, year $XXX.X well and product $XX.X Medicine net product million fourth as as million collaboration and Genentech. of license well and ARCALYST

the million. million agreement ARCALYST of XXXX payment Huadong expense $XX million. year fourth $X.X Second, ARCALYST expense inclusive to Full a and was $XX.X to in collaboration license was profit million related our collaboration collaboration million and was collaboration profit with grew quarter $X $XX.X

the revenue, as course as deferred tax allowance from well benefited collaboration release Third, over on the assets. evaluation of of net the year, non-cash income

and income full XXXX, million net For $X.X year quarter the respectively. $XXX.X fourth and million was

financial guidance. Lastly, turning to our

$XXX mentioned, $XXX.X As XXXX ARCALYST between we expect we net of Ross total reserves cash revenue million ended of $XXX and million, with million. and XXXX just

as plan to reserves continued ARCALYST these our into least operating at as commercial expect execution XXXX. fund We well current

the that, for with back call to remarks. turn closing Sanj I'll And

Sanj Patel

We there into Mark. a about lot Thanks as is we of move excited be believe rest year. the to the

of $XXX range. to collaboration. as And net mentioned, product year-over-year growth both As producing profitable million midpoint XX% million, to at continue XXXX that revenue than ARCALYST which year revenue a full the and Ross represents and that we $XXX expect a greater of have corporation, Mark we're

and mentioned making collaboration ARCALYST and have lives. As our mid-stage of addition at clinical also successful commercialization in big patient aimed a previously, I impact on of recurrent pericarditis, programs we to pipeline a

study next of year. the half As and we expect the a first enrolling in in rheumatoid arthritis X in patients we're Phase reminder, data

are we Importantly, capitalized. well

providing supports ARCALYST cash in transactions mission us all growing Ultimately, have continued We from create continue generational XXXX. patients revenues, at discipline, out-licensing strategic to financial our make a need value capital is to non-diluted massive runway into impact. help and in which and least

time want And all it the questions. I you that, operator today. of to with And for back thank I'll to your for hand

Operator

[Operator Instructions] Morgan. And first Rama from our Anupam comes JP from question

Anupam Rama

Here's between factors we second reintiation delta end expanded of considering, considering question from the question. compliance, the dosing, post the range the seasonal that top you then quick just What it a a sales seeing of metrics are the should market $XXX of types we there? million, What's And pull end it to what guidance. bottom is through should guidance and quick $XXX be on is force? be trade and penetration million

Ross Moat

is guidance the I one, first. think

adherence $XX is the growth continued So of announced that as provided delta, as quarter. expecting previous is we uncertainties, which as and mentioned, we what duration total well the we've what the knowing Also -- we course in than the XX prescriber today were compliance provided year, months which of rates fee things the higher duration, which you announced some that we're and of there worth guidance, well. million is last same therapy, prescribers, is that growth which those in

from the realize that So there's look that. which executing we feedback important is forward I positive. the and going provided against patients multiple the think we’ve US. are field guidance, to that thing we is the around facets The incredibly range into But the are there dispersed get that

create but to and do appropriate be we've we're far, a comfortable there, create lot so awareness, X% a penetration in -- to So delighted into prescribing message to more ARCALYST work out when XX,XXX physicians have the get they got the to familiarity comfortable patients. see target populations

driving keep year. to that we've So throughout the got penetration

with we provided more an by throughout the force, aim yet, and the expanded built On around that our metrics year. earnings in team QX field full is end field call. everyone sales team, we this haven't many the place year really to And really we’ve QX of the 'XX have

kind of early So bit that is yet. too a judge what it's to

we've to and happy training, high and pleased number then come recruit people we're very who at into onboarding obviously, join as to exceptional rigorous been clinics that the And with are of current came very really which in, Although, team. we are some a well. we with doing able applications completed our

And to in of making in And an to that takes that kind time. results as field be for and QX. in year. the see enrollments So we seen of we new the is up move throughput the the some coming a associated throughout with patients rates of out activity there And we've in onto wait uptick fields then the what terms in that therapy difference.

Operator

Choi Paul Sachs. from And from Goldman our question next comes

Paul Choi

sensitivity patients just in how your particularly questions. to fourth have anything have of built conservatism, the of to exiting maybe and guidance might then have I that also if can I quarter then economic on behaviors, market guidance, a patient the couple this, RP question follow-up if and regard with into you of sort the indicated articulate some ask want much any a seen and because you is

Ross Moat

haven't economic really around of anything QX seen of of we patients. kind note in So the sensitivity

resetting course, of Of course of the the to we and implications not that well, copays, around there's plans, now dynamics. first in types in insurance that some getting medicine the our of know changes around seasonal all of commercial of is and end starting year specialty as time those QX our off and setting, this

all services So out team OneConnect, we their on journey patient the patients we robust throughout and an set on have which to have been launch experienced in Kiniksa ARCALYST. prior amazing supporting

So moving and very on understand situations changes have so they the to rates contract to insurances high and their with forward. patients

to economic kind that on So can to patients of as to both and with plan to bridge appropriate going onto -- very support we ensures like so therapy circumstances and they're the if closely going within therapy work try make we back that are well. changes commercial patients sure as ways provided throughout,

those they and place those have to on So in we eligible for to support patients look continuing commercial that all remain make we forward programs can therapy. to patients sure

Paul Choi

of exposure might be? I want on then potential with is, you patient question and us the then to the early an to the where donut the just when year And one provide complete maybe your in XXX expect pipeline ask Medicare relative update growing base, you hole part what you dose are just escalation? maybe in enrollment to can potentially enrollment here And

Sanj Patel

quickly that, we've patients been that and supported happens of which start type year is, of coverage, way take of donut there that patients part. Eben the as recently can in we through the before on question I'll every in talk to terms maybe the So the to well. and next that drug pass the first the and face with But catastrophic about through of our in hole part

a through of just to support services we remain each eventuality. the have very to them we wealth close and patients So

having in place we're the year. confident throughout in programs quite can that all we to support So the patients

Eben Tessari

of that I'll we're What no take the meet next is track other have updates. in question the certainly obviously the the first we'll we on part objective and to said half results that year, of and on enrollment.

Operator

Wedbush. from from Nierengarten next our question comes And David

David Nierengarten

bit of severe? question they a tending course know or -- do line had that in have be discontinue. a you taking a I just you they group who half? might initial duration on or earlier for patients they, past treated the little the a who do I'm handle line year and patients patients the are are are initial earlier in get And be of who after over than patients less the therapy trying to treatment, treatment, to of

Ross Moat

there's very may of need days we to draw to patients in the restarting. really date types It's to there moment, a if small that to But it's great trends the and try conclusions that stopping size at can't be to build clear with for question, early of. some be on really a deeper the -- wait moment. on that, the particular at and dynamics And any fairly understand we aware to relatively of anything

years focus do some really it know many that patients physicians to for disease well, make with the patients long they three sure years So years. XX% a two beyond it's use have on around The set disease of our is tail. that is particular and as we that duration of educating that in the the very for have that data median

of throughout What disease understand XX is around the duration also know driven that XX is the to approving the which are simple thinking. longer. the into in of of before, that and for we majority play the prescribing that have is spite that physicians the So and the to fact in of help by for initial also reauthorization worth patients continue average, and seen months end probably try approximate treating requiring for a importance months before the general And prescribers we on refills. treatment to their XX months payers

that of period on of XX therapy time it's eludes which restarting regardless about know persistent see whether the XX or can the this how period and the much and really out we So time some I've not, of duration total certainly think does or or disease we to I to those longer seen even and of that, do will patients be. a XX%, of what course, months speaks shorter at stop. stop, than that But consider and where a disease trying months-ish junction create bit try stay or patients stop and to do physicians patients whether a all to that

make adequate the wanting for patients don't do they along people learning have maybe as treated sure future so think way So amount well flares. that suffer the get are of to to time, I and

Operator

from next Meacham our And comes from question America. of Geoff Bank

Geoff Meacham

a have I just couple.

among persistence shortened I you you to Where have at ultimately is starts, the onboarding, think guess it do like, you could try question new the So rates. question. guys you have ARCALYST another would diagnostic I I look shortened Sanj. guys whether question patients guess, you It to for priority accelerated And an on at ranks SMID is near how path time And where then the important go? for a guys the second cap this profitability when be strategic rate? very get peers. in one to on the a objective? as a that then The differentiated question is, as drug wasn't term? sure is

Sanj Patel

I'll have one. first Maybe answer part, this Ross back second I'll and to come the

Ross Moat

and number patients get now. But for that that when a is even answer duration So maybe This far. possibly, the around rates to longer longer have know first to have may months. been we average treatment the to restart need But with months wait I persistence about like, on what know XX long mentioned. disease. period know data that what that. well we But anticipated the take so knowing that the the looks on a that is the And initial XX we've there just expect is announced like that we And or if the yes, quite limited. total time market looks duration you so to tail your question first. only we I know We time it be are We've yes. percentage to reasonably and we what than ability duration mean made? of the we build be the for that's out, about are due tracking we previously far that for the

on the keen XX now, and for sharing to tracked be to goes So as on. average a worth more the we've what through XXXX. we’ve eye seen information look of time that end from that months approximate will forward said that therapy we've duration But very with of

widely at on we're diagnosis your question we're tell And revenues market Again, a market path I knowing then or very rates, a to first analogs looked it's the here US. actually diagnostic seeing ARCALYST, time in part the the think educating therapy some building. ultimately And space and on of educating spread therapy. which and disease. success is and paradigm, takes you keen building approved number doing we physicians, of difficult to through efforts second similar we're going is of treatment if time ARCALYST. do in But patients what the on rare that initiation very awareness how the in making The around a the are the in the the other patients only prescriber this and as that are type well. and physicians throughout the flaring changing And to creating we're remembering where promoting and

your to of important to and profitability and always are target opportunities in that think is have going important X% it good not penetration steady the excited some into But the why of time. that's growth we've that is the launch increasing as the far. value more see takes So are we and to important. said population that us we this with of in so exceedingly even and I to ahead. we to more part addition opportunity so by perhaps sequential Obviously, as a And latter even But how Geoff, increase terms the miss. And question it well.

we shown quarter-on-quarter. and as discipline financial we've be that we've can shown I as think is very far disciplined that concerned

our obviously and while the moving that on out continue strategic to in disciplined why of forward. is the profitability significant we'll [indiscernible] we've value, important, licensee will we very allow and much portfolio that's changes focused of made some increasing that are So amount capital, made be for we've

Operator

question comes And Liisa our Bayko from Evercore from ISI. next

Liisa Bayko

how growth just XXXX. you're about I'm curious net for on to thinking

for know XXXX. for do XX% you more year? it think around at came What this I in You’d X%. guided to

Sanj Patel

Financial for Chief like sounds question Officer. fantastic a That Mark Ragosa,

Mark Ragosa

going certainly not at quarterly gross have was provided year-to-date. formal think to guidance. don't the some this And fluctuations to net forward, X% So there's big gross I always swings do expect we but point as while for net Ross mentioned, in not

Liisa Bayko

was X% for… year-to-date so for was or wait, So

Mark Ragosa

Yes, exactly. XXXX. Yes,

XXXX… year-to-date So

Liisa Bayko

make XX back restarted Are I to to to who who the -- discontinued the who discontinuation? are the saying you discontinued? if XX%? I'm that those so, or discontinued does represent like And just trying sure restarts And guess the of percentage of want who patients understand or clarify patients the was then restarted, discontinued those therapy? is What to patients understand. I what what I of And XX% patients

Ross Moat

So maybe I Liisa. The patients discontinued can all XX% XX% XXXX. ARCALYST of that for pericarditis is clarify of those treatments throughout who recurrent

they So stopped, even look therapy if aggregated they months aggregating longer. so regardless when XX for of of number XX%. the who stopped Out stopped therapy of that when we after when at or those all one that those month is look those we or worth have therapy on all started at restart those been

stop their more days or prescription a XX latest when means refill beyond ran out that out. than So they've ran their gone

So on having of their months they’re from kind two last script.

that So restart. having [Indiscernible] and is yes, XX% stopped then, therapy

Liisa Bayko

discontinuation And see? you then that is rate the so what

Ross Moat

XX across the of on we that number that rate aside actual of of graph, discontinuation it. terms without average approximate investors time a In well that the months an started. do have saying from our distribution slide in kind broad was as deck the provided haven't all discontinuation discontinuation we So which specifics shows patients

So flavor of But that months. gives little there. average a yes, is you bit XX a the

Liisa Bayko

bit little this missed valuation can more? you it. I it, know you a release I quantitated then discuss just And

Mark Ragosa

in happened third it this So year. the of quarter

full deferred year the year the position tax in we forecasted release of allowance And Vixa ARCALYST required cumulative back main non-cash the UK. $XXX reported in as agreement the from second allowance And sort deferred UK net both benefit plus -- income we of sales, position loss in our our quarter, go that little So tax a UK. we assets. as the the and license bit XXXX. tax valuation cumulative were non-tax a was gain assets tax And million in if in against you actual three the to had with deferred were go a and and then the tax proceeds of the reached US evaluation such, the on driver three back we kind

Liisa Bayko

far. you've And do stable had Is so here? compliance think shift pretty to you going or that's from you XX% think do around that

Mark Ragosa

on that a our compliance ARCALYST. rate And said totality is sure just The of that patients rate. they put journey, and driven lot they're We from compliance greater all touchpoints is the duration showing to continuous response. across along and a adherence continuous way with XX% XXXX, it of the also XX% importance our than we results high was compliance to of kind understand helped efforts in in make into the therapy data that treatment

as touchpoints on So adherence have cause with various other patients and are we that therapy appropriate.

So that than greater totality was XX% the across of XXXX.

Operator

for am over Sanj I Officer, remarks. turn Chief like showing Patel, would closing no further to questions. now back Executive I And the call to

Sanj Patel

forward in exciting the Thanks, you and operator. Thank of updates additional very the got a everybody the look for providing questions we us to and year joining ahead call today. We've future. clearly

everyone. thanks So

Operator

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

disconnect. now may You

Kiniksa Pharmaceuticals (KNSA) 28 Feb 232022 Q4 Earnings call transcript