KNSA - Earnings call 3 2023 | Kiniksa Pharmaceuticals, Ltd.

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Operator

Good day, and thank you for standing by. Welcome to the Kiniksa Pharmaceuticals Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker today, Ms. Rachel Frank. ahead. go Please

Rachel Frank

results Good Kiniksa operator. financial and you section. highlighting thank and website on Thank the under to morning, discuss joining Investors these release Press Call portfolio XXXX be our for found recent our you, execution. everyone, can third results quarter

provide Chief As John update Moat, Officer, K. Commercial our Legal will for Officer, Chief and Paolini, on Financial a with start will XXXX Sanj Ragosa, Officer, agenda, Officer, our session. Sanj an our remarks Chief execution. commercial an our the provide Mark who Executive And Patel, Q&A quarter the closing will results. forum third introduction. will and KPL-XXX Ross review; off our to return for will Chief review financial kick finally, our

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

Sanj Patel

review happy third results I'm Thanks, XXXX good to our everyone. Rachel. morning, And today. quarter financial

our with with and execution ARCALYST aspects continued KPL-XXX. We growth to clinical all business, including revenue of strong advance trial

net product growth of another a side, revenue with commercial million. the On represented ARCALYST quarter QX of $XX.X for

and the prescriber have third seen to continue and execute enrollments in We adoption patient quarter. strong commercially, we

rates high patient encouraged remain and by approval also We of duration therapy. the payer satisfaction, the

is the now also third of development of have end guidance and portfolio, currently Phase the II data arthritis, focused XXXX. for and We're we the $XXX cohort first KPL-XXX, over subcu XXXX. $XXX safety X CDXX designed previously trial expect which high issued we're quarter tracking towards in PK completed antagonist across to we a of now our is response, duration and executing chronic our dose trial and cohorts million of the evaluate rheumatoid to to our This program dosing of XX of enrollment efficacy, million X in of And of the clinical from weeks. is

Paolini John more details this a Dr. on cover program will in moment.

to pursue evaluate that to continue we collaborative molecule in mavrilimumab diseases. potential rare has Additionally, the with impact its potential cardiovascular a number agreements a of to This is diseases. study

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

Ross Moat

strong grew details This ARCALYST Thank over quarter-on-quarter. of third our I'm a $XX.X delighted of demand commercial underlying QX, growth has as further performance million increased of the vast and on our year-on-year patients In compliance patient new and since to represents quarter the been to net due and Sanj. case the a number and That revenue therapy continued you, XX% approximately strong of on from increased growth the growth. revenue share of quarter persistence. million. result growth $XX higher drivers to this enrollments came launch, majority just

patients. off since well launch, has prescribers. X,XXX and experience as as recurrent is deepening the our that from range individual prescribers in XX% strategy revenue strategy within resulted specialty or within continued contracted dual a base have of now prescriber more base, a of focus underlying increase recently in The for higher the slight more driver in our the benefited prescribed network. broadening increase Additionally, QX inventory of than pharmacy existing X the This demand on the pericarditis restructured ARCALYST

be rate all completed to approval cases. greater XX% continues of payer than Our

a total get XX towards of at and XX% above continue months evolve currently more average may on the durations of of remains therapy. longer to patients compliance around Patient the duration sitting as therapy

good to pericarditis. to as our X. market growth. our several care continuing Slide standard the date, to in making Moving build priorities drive the progress launched We're Through treatment in of we've experience future to paradigm recurrent the to and outlined core establish artist change

mindset need identification we drive for Firstly, to and of patients. a recurrent proactive treatment the pericarditis

they patients Harris XX% a with of pericarditis diagnosis. their survey, other conditions diagnosed In poll recurrent that reported were to prior incorrectly

highlights for an education on of that's had X.X possible average improvement by pericarditis disease. the they before This the fact, room recurrent diagnosis the In diagnosis. advancing substantial

treating flares themselves. Additionally, in on to be treatment diagnosis need well disease mindset can future earlier their once increasing a is reached preventing for they as and education to options as evolve more physicians' advocate and so proactive we patient

on focused we're very We the physicians by awareness know and prescribed, ARCALYST ARCALYST. a gap closing when that of increasing have the positive Secondly, is both knowledge experience. patients

recent prescribing we aware growing broad Based However, respondents a the within need to cardiology the ARCALYST. survey base, of XX% physicians, XXX were to of audience. continue around on increase and rheumatology generally of knowledge the

However, were which you how very interpret make for, works what and look it need order decision critical clinical the in would who having a information data we it's the only to half prescribing like. knowledgeable as such as

were which that more the consider have quarters force. in lot by the physicians been has to physicians consider importantly, last knowledgeable sales of The And of themselves growing. impact we who again, speaks representative knowledgeable, the of the Kiniksa news X of So seen percentage opportunity a months, very themselves very good ahead. our who three is

treatment starting we're pericarditis. for evolve Additionally, to paradigm recurrent the

recommend patient fails treatment leaders While of there are from U.S., guidelines corticosteroids algorithms and NCEs after recent are no in antagonism the introducing and a currently ahead consensus thought beta that alpha colchicine. interleukin-X coming publications

is future professionals which prescribing so their increase overwhelmingly report report of the intend is still around prescribing X/X positioning of and opportunity but of our who the help is encouraging pericarditis ARCALYST this to suffering say that on exactly debilitating while recurrent of ARCALYST. excited When corticosteroids they're they progress are patients even care from XX% launch, opportunity current the to aligned ARCALYST, we're health you patterns, there future utilization since look far disease. they penetrate Based a growth. great we date, at to for that we've intend corticosteroids market to made of substantial to prescribing decrease more progress ahead significantly Also which that to their believe suggests more physicians

headwinds over our and with the Overall, for our quarter, QX currently discuss KPL-XXX. range to revenue last progress I'll we're million of delighted trajectory of John John? accounting our are our expected net dynamics, collaboration. stated level guidance tracking the $XXX setting to profitability previously over and to and to high $XXX Based current With inventory, growing an that, hand of we the from industry end both of the the on million.

John Paolini

KPL-XXX duration rheumatoid weeks. shown Ross. aim dose the evaluate over of here response, II trial Phase Thanks, dosing the to of and safety pharmacokinetics XX subcutaneous arthritis efficacy, a of is of The chronic

cohorts X Sanj of study enrollment patients in X, per and administered X-milligram completed to will fourth weekly subcutaneous cohort approximately the enrolled a new a in XX randomized study. biweekly monthly X:X placebo. randomized an we've approximately versus cohort KPL-XXX X fixed initiated of This ratio versus to in the whereas administered As Subsequently, dose the enroll we subcutaneous level mentioned, a or placebo. ratio XX Cohort X fourth additional a patients versus kilo dose X:X:X

the exposure XX was other by will X trough proof-of-concept This which in loading levels We for a reach XXX a level, dose provide trial. milligrams cohort to XXX-milligram baseline the DASXX-CRP of a PK/PD same followed primary to receive week day picture patients Specifically, X of subcutaneously additional endpoint of is which every relationship. arms in remains participants comprehensive the in predicted X weeks arm Cohort decided from the at exposure trough complementary tested on to weeks. of X, the changed order active being the KPL-XXX portion to Cohort more initiate in the XX. is as The already dose

to designed of efficacy competitive be of different the mechanism raw to placebo, we relative the horsepower is study subcutaneous this regimens versus going to are dosing landscape. at the While also the looking test

Cohort XXXX and to and in of data financials. from Mark? will first second expect the cohorts our We in to the X XXXX. X over data it turn quarter X, cover from X now Mark of I quarter

Mark Ragosa

Thanks, John.

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

was operating the quarter and license third net including second, net collaborating First, million, million, more the ARCALYST and ARCALYST quarter third growth representing $XX to collaboration drove year-over-year from million. million strong growth revenue of the $XX.X than total representing vixarelimab; $XX.X $XX.X profit expenses of XXX% leading of collaboration million $X.X revenue agreement revenue for to in product in ARCALYST product XX% year-over-year revenue Genentech

which to were commercialization of collaboration higher rheumatoid II the well growth trial of goods and by cost Phase growth sold period. ARCALYST advancement to expenses as revenue expense both and of arthritis Third, our investment for operating related the year-over-year KPL-XXX driven in contributed as

in milestone recognized we cash net of revenue an million. development to and the second third in year. $XX third million that This and of disclosed cash balance of quarter, quarter Lastly, was from $XX led quarter $XXX ending Genentech as received a the the flow million this for

to commercial closing And call continue turn We into as reserves current with as these execution I'll operating to fund that, to back strong ARCALYST XXXX. at expect well for least our plan remarks. the Sanj

Sanj Patel

Mark. Thanks,

and well-capitalized demonstrated growth-orientated by X, as the execution, consistent We're data highly XXXX. the maximizing first as commercial cohorts from focused and today, and KPL-XXX of heard arthritis trial providing the company. ARCALYST you've II in X of opportunity Phase quarter in are a of clinical rheumatoid our on we as well with As X

the RA, a number therapy indications. In a best-in-class autoimmune KPL-XXX addition potential believe to be could across of we in

a we believe our we for the do need, exactly for the on massive ARCALYST all execution runway that. XXXX. helping back have patients to into want are we and to company's $XXX creating million, value hand time I'll now we impact, continue financial commercial reserves you to and in do I thank your it at discipline, least today, making positioned strong Ultimately, of operator and strategically questions. cash a to be generational cash Given and focused

Operator

first from Anupam [Operator will JPMorgan. Instructions] Rama come of Our question

Anupam Rama

Congrats wondering on of And are seeing for quantifying maybe on the kind how you you return all from force on expansion progress. are ARCALYST? there? the what I'm investment pull-through the sales the

Sanj Patel

go can voice. I start and to you to jump Ross, hear your and Good in? want do

Ross Moat

Yes. question. thanks, Anupam, for the I mean,

I think robust we've the had with pretty revenue of can growth. just where see I'll last quarters saying worth couple performance, of a start from you

that year expansion we is changed I trained, think said the were in of towards last we And and part up handovers did jump and the and place activity team higher last parts by of the the around in associated activity. of year. an a a early that sales in this force the part in then time saw down year large stages we to and the that had late early with we territories end increase of in enrollments that patient --

hard of of to from getting than where fruition the in the recent out We're it work growth the see And the out of saw of out then earnings there more the in potential the we rheumatologists. patients, QX really to And a of the spread of just sales broadly speaks but $XX to most also that over of million. think $XX importance growth recurrent that's pericarditis and some cardiologists field. there, million I starting the

Operator

Choi next come of Paul line the from Our Sachs. Goldman question will of

Kyuwon Choi

doses dose question and the with or every other weekly cohort to the first regards with higher the weekly the to addition of generally other loading study. John KPL-XXX is X than other X you're cohorts. testing the for The are My

So of schedule, exposure to other to dosing increase improve Or is you cohorts? a characterize if that given on here? monthly relative more just convenience we a the for view there is maybe can test see to you need it us, the can

on My guideline of just of and status kind the of Can ACC getting misdiagnosis inclusion update factors to maybe for for is you are timing Ross just or just regard the lack second us with on treatment either AHA and guidelines. potentially comments gating question that. his the is what what consensus and a

John Paolini

question. your for much so thanks and Paul, Sure.

So approach that and relationship. to PK/PD was plasma of concentrations a picture to biweekly X, yes, the the more comprehensive Cohort to with regard clear, the KPL-XXX provide be actually higher. are levels dose But weekly provide

kilo weight and the between milligrams XXX X-milligram patient. to actually, depending kilo per milligrams roughly dose, sits dose the XXX-milligram QX-week is X subcu X-milligram per subcu dose remembering So thinking per the in absolute on XXX that kilo the the of

you it opportunity And mentioned, is, this more to your every so dosing an intermediate us concentration but which as to month, actually test of trough giving test only not provides interval also, plasma convenient. the that different point, to

for And in plasma attainment yes, to us quickly. so And allows plasma XXX weeks allows the of that's basically the every other XXX-milligram concentration loading the trough X approach trough between the milligrams get then, dose concentration, is and that that to which X. the

Ross, then, to the of did start And other Okay. with part want the you question?

Ross Moat

Thanks, you. Paul. Thank Yes.

to start maybe So with on I'll the John misdiagnosis your part. back for I treatment have guidelines question

for patient to and think the shared could population. really And that obviously, the how need awareness. commonplace think among this for be information I So speaks on we education some misdiagnosis, that I

think current I around for current strides the in more guess were good seeing previously, We're substantial the to much we're pericarditis. therapies I approved have so And no but increases the there awareness targeted taking of pericarditis. do.

we're now different So in place. a

get that the see correct to to takes the of I And education patients diagnosis. ramp-up time we're to we'll think and a for awareness. hopefully, improvements see it starting

advocate team we're field, patients to well our as boosting sales to as out effectively around the themselves populations there the across So field out directly awareness as forum medical a ways get well. for programs in both around and physicians the other can help and very education various can webinars doing we perspective, messages to digital so from efforts that they our focused things speaker direct-to-consumer in across affairs just

So have to work certainly improvements some a more we're that, good lot do. but seeing to

John Paolini

regard in that to the was and out with made then theater. maybe European And were time to the that guidelines guidelines, point in last XXXX, was

the out. the in really space. IL-X Cardiology put So of predates any guidelines almost And the European that work Society course, of of those

so And NSAIDs that then resistant paradigm, corticosteroids. it's that only and through And in antagonism is that corticosteroids are patients in after progress colchicine patients treatment to an used.

flares in from according had failed on who field colchicine had the not and came So pericarditis the corticosteroids, half those only and therefore, subsequent on X the Rhapsody yet with flare while NSAIDs prevention only in which to been data of of the the the the about not real progressed resolution also therapy in of evolution paradigm patients, but patients also is the acute old corticosteroids. to of demonstrating but the not had study populations

to the the opportunity the those using then provides And populations an similarity advance in actually into in treatment of of corticosteroids. X so of IL-X space the advance data antagonism paradigm

and the the how to kind literature is, that by of up fact, picked sequence what so American And thought in leaders that has been of in manage disease. showing best

therapy. see And of patients for so achieve acute a to that of sign as their very and encouraging resolution we flares prevention subsequent flares on

Operator

[Operator Securities. Instructions] Nierengarten Wedbush will come next question David Our of from

David Nierengarten

I have two.

on on handle curious don't less patient and disease. any again, just do severe kind data, you have stage patients. are a a Just patients on data on another additional with earlier the And then could if it who restarts RA therapy release know you in bit bacterias therapy if return their second percentage a was the discussion the stable little longer-term with like with of distribution XXX I'm on of there beyond of of nature question we worth have discontinued any and therapy. the in to idea I time get expect when the a a of seems tail or on stops QX. there indications quarter you the on those

Ross Moat

Okay. Thanks, David.

as we're the what a the on episode years X I natural So as and of their well. really reminder linked X/X a this which educate part of disease suffer therapy a around as the that just from initial out and guess duration answer natural history therapy generally patients is is we from seeing to Happy patient of X history from Ross. duration patient about physicians restart should to stops the the that around index the years as the median be well disease, still

back from So is The the is The around therapy, of first seeing around to XX of total all X-week duration of time initial of restart XX%. recurrent in and And time should depend And the that average median all we're time time the the suffered of period. on in which across come at around a have most treatment average of how patients who is treatment and XX XX% around total therapy diagnosis months. upon patient length rate we're real-world the course, those treatment. setting is the pericarditis for long populations. they've what months seeing cease within

can stay of so expected So that really going they've the pick time with net history they're they stop demographics time long patient auto your again, there to But of treatment terms of need in treatment part say we their early it's stop patients, that, fair disease and to diagnosis real long happening there's information proper how commonality knowing ARCALYST that robust is and ARCALYST and the go of moment this they always on back down suffered through present comes no can what for around to longer natural avoid we to those in do that safety at out It course, of the question obviously, there's the underlying the more of there's around for I or too and patient that the to nature they think that if how at first likely duration a the in still on. suffer treatment. or stop place. want just are from on to

Sanj Patel

your to first X, those quarter, the question RA. this is X regards We're the Sanj. cohorts looking in you from David, in as data definitely the forward study from to cohort for with Thanks mentioned. KPL-XXX and X

differentiated a is potential As I also be, indications. KPL-XXX strong to efficacy, believe looking about but both not potential of exciting show for definitely dependent. would number point, and some disclosed earlier, We're excited what of the there some hopefully developments we're effects to hopefully do some in forward washes data but mentioned autoimmune space. this certainly At the future, a hopefully those we've across RA,

Operator

from Bank Meacham John of America. This of is will Our Geoff next question for Geoff. come Joy

Unknown Analyst

I quick think are see prescriber questions. second, just to guess total TAM is, grow, about TAM, have headroom X a of continue of like grow? do and you bit? starting flatten thinking you out as that kind thinking you how you there's sort guys I One you to to structure? Or are about are how payer still capital And

Ross Moat

and at looked to the of end growth around on part, dispersed prescriber that space the that we I'll around that's good opportunity over then yet, we therapy Maybe as penetration X% question, patients bear hand and reached of are second repeat individual announced well growth while or how the opportunity year U.S., first we're when as in the huge seeing as And the widely speaks and many at that and prescribers really the for prescribers. bit. the Sanj we see John. ahead. around And that mind I'll that of just take the Thanks were the just of still updated the we the XXXX. in turn for that We to there's Mark the still both figure at fact there reasonably patients haven't number a

exciting reach launch to many that stand opportunity the suffering. to think still speak recurrent many, in embryonic pretty are ahead opportunity our I we're there. feel who I with that relatively patients more to pericarditis a all out

Mark Ragosa

well we're capital, our to I question very think on mean, guess capitalized. we regarding your I thinking Yes.

the million original sort of investments of that reserves the end having spawned and are day, As and I which in time investments the in success we future quarter. third any at line the our from future the at XXXX our ultimate the guided end current $XXX to the of investment. runway, At upon cash depends mentioned, least of

cash the base in So we our in runway at quarter. million the very reserve confident end of of feel $XXX our

Operator

will question ISI. from Evercore Bayko come next of Our Liisa

Liisa Bayko

of Can into that seems I inventory I but you amount kind some quarter-over-quarter little fourth seeing offset bit a that's changes. what flat like know the maybe to inventory contributing guess, quantitate and quarter, you're by the more is this changes a how of

So if helpful. would be you quantify that could

Ross Moat

right. that's Yes, is that is, this of Ross. In some

a QX the pressure robust drivers the of key we've from at to that of I expect of through related performance we firstly, QX and mean go year, across ahead. maybe I and the thinking when got couple on headwinds growth said, But those couple to clear, we as And being see very So a potential QX. I'll forward some huge all we of in despite to to net the had expected the driven to way. things. be little end believe in growth continued a And look our that commercialization. in we in gross a continue that's we still

accounting end-of-year from co-pay resets increases for Firstly, insurance the and systems.

the under level growth, additional out but slightly had following which we're QX. of to items revenue regard QX. So of QX drive higher in of as to prior secondly, revenue that some changes in the we've magnitude quarter so inventory in gross favorability pharmacy we specialty the QX they're had industry-wide well but medicine, some pressure our certainly in expecting really as growth And expecting network, specialty the to net still kind in that we a expect to may

they And as into end of we the are we the provided. guidance high tracked said,

Liisa Bayko

just third closing we quarter? that And quantitate bit also we're the what what in you like amount Can are then the talking change a more, about? inventory little Great.

Ross Moat

Yes.

the haven't said driver majority all the time we the of majority a that but since key growth down of of really quantified on of of is So therapy we growth has launch. have to the the of really -- quarters inventory comes number worth our been higher what having patients vast amount, the

the that's vast So majority.

in XXXX. there, bit a there's dynamic a that's as versus inventory of net And year-to-date little we've Gross mentioned. then to X.X% smaller to is X% and level,

some are X.X% always so we year. that's So far quarterly at but this where there's fluctuations,

Operator

the Patel like seeing conference queue. now am for Sanj questions no remarks. to to back closing in the further I would I turn

Sanj Patel

future. providing of call looking Thank time additional us very the questions joining the today. and you the in very and much We ahead exciting to clearly forward much updates for an have

then, until much. thanks very So

Operator

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

pleasant and disconnect, day. a now may have You

Kiniksa Pharmaceuticals (KNSA) 31 Oct 232023 Q3 Earnings call transcript