KNSA

Kiniksa has crossed into durable profitability on the back of ARCALYST, its only commercial product. FY2025 revenue jumped 60.1% to $678M, net income swung to $59.0M (+236.6%), operating income hit $77.2M (+269.3%), and operating cash flow exploded +437.1% to $138M — a clean inflection from FY2024's -$43.2M net loss. The balance sheet is conservative: liabilities/equity of just 0.35x, $568M equity, $166M cash and no debt stress. R&D actually fell 13.2% to $96.9M while revenue ran the other way, which is what flipped margins positive (operating 11.4%, net 8.7%) and lifted ROE to 10.4%. This is a genuinely better company than the lumpy five-year history (net income of -$158M, +$183M, +$14M, -$43M, +$59M) would suggest at a glance.

The problem is concentration and price. Per the MD&A, essentially all revenue comes from one drug in one market — ARCALYST for recurrent pericarditis (an estimated ~40,000-patient U.S. prevalent population), sold only in the U.S., and Kiniksa 'evenly split[s] profits on sales as well as third party proceeds with Regeneron.' So the headline revenue overstates the economics Kiniksa keeps. ARCALYST is licensed (not owned), and the company is mid-stream qualifying Samsung as a replacement CDMO after Regeneron's 2023 manufacturing tech transfer — an execution dependency. The accumulated deficit is still -$462M.