Kiniksa Pharmaceuticals, Ltd. Q2 FY2025 earnings call

• ARCALYST continues to show strong revenue growth, with net revenue of $156.8 million in Q2, a $19M increase from Q1. Cumulative net sales exceed $1B since launch.
• Raised full-year 2025 ARCALYST net sales guidance to $625M-$640M from $590M-$605M.
• Initiated and begun recruiting in the Phase II/Phase III clinical trial of KPL-387 in current pericarditis, leveraging experience from RHAPSODY.
• ARCALYST's commercial execution: expansion in prescriber base, increased penetration in pericarditis population (15% penetration in multiple recurrence setting at end of Q2), payer approval rate >90%, average therapy duration ~30 months, compliance >85%, and use earlier in disease course.

ARCALYST generated net revenue of $156.8 million in the second quarter, a $19 million increase from the first quarter. Cumulatively, ARCALYST has generated over $1 billion in net sales since its launch. For full year 2025, ARCALYST net sales guidance is raised to between $625 million and $640 million from $590 million to $605 million. ARCALYST's strong revenue contribution drives the company's financial performance.

• Raised full-year 2025 ARCALYST net sales guidance to $625 million to $640 million from $590 million to $605 million.
• Year-on-year net revenue growth at midpoint is expected to be $215 million compared to full year 2024, representing the highest annual increase in net revenue to date.

Forward-looking statements made are subject to risks and uncertainties that may cause actual results to differ materially. Risks and related factors are detailed in SEC filings.

Q: Commentary on trends in the first recurrent setting for ARCALYST.

A: Ross Michael Moat mentioned that while 15% penetration is in the multiple recurrence group, there's growth in early disease utilization, with around 20% of ARCALYST prescriptions coming from the first recurrence setting, and growing physician comfort with using ARCALYST early.

Q: Thoughts on sales force expansion and KPL-387 administration.

A: Sanj K. Patel and Ross Michael Moat discussed sales force rightsizing and digital marketing efforts to expand awareness. Regarding KPL-387, it's data-dependent, with potential for outpatient/self-administered administration.

Q: Therapy duration and cash flow/study initiation for KPL-387.

A: Ross Michael Moat stated no significant differences in therapy duration across cohorts. Mark A. Ragosa discussed continuing to create value through commercial execution and financial discipline, with capacity for further investment in the pipeline.

Q: KPL-387 efficacy boundaries and competition.

A: Unidentified representative mentioned focusing on dose selection in Phase II, and Kiniksa remains the leader in recurrent pericarditis, with an understanding of the disease mechanism requiring control of both IL-1 alpha and beta cytokines despite emerging competition.