What happened
Shares of Kiniksa Pharmaceuticals (KNSA 1.53%) were up more than 27% just before noon on Tuesday after the company reported second-quarter earnings. The stock is up more than 27% so far this year.
So what
Kiniksa is a biotech company that focuses on therapies to treat cardiovascular and autoimmune diseases. On Tuesday, before the market opened, the company reported Q2 earnings that showed strong growth. This is thanks to its first marketed therapy, Arcalyst. This drug treats pericarditis, which causes inflammation in the sac that surrounds the heart.
The drug was approved in March 2021 by the U.S. Food and Drug Administration (FDA) and launched by Kiniksa in August 2021. Kiniksa reported quarterly revenue of $71.5 million, up 165% year over year. The revenue included $54.5 million from Arcalyst sales and $17 million from license and collaboration revenue.
Kiniksa said it had net income of $15 million, or $0.21 in earnings per share (EPS), compared to a loss of $20 million and an EPS loss of $0.29 in the same period last year. The company also said it now expects yearly product revenue of between $220 million and $230 million, compared to earlier estimates of between $200 million and $215 million.
Now what
There are a lot of positives for Kiniksa. Arcalyst is showing blockbuster potential as the first drug directly approved to treat pericarditis. The improved revenue will help the company launch two drugs that are in early stage trials in its pipeline: KPL-404, to treat rheumatoid arthritis, and mavrilimumab for several rare cardiovascular conditions. The company said it had $185 million in revenue, which it now says should help fund operations into 2027.
