Kiniksa Pharmaceuticals Stock Is Attractive From Valuation Perspective-JP Morgan Analyst

JP Morgan analyst Anupam Rama issued a note on Thursday maintaining a positive outlook on Kiniksa Pharmaceuticals International KNSA, citing Arcalyst’s strong commercial performance and the company's focused pipeline.

JP Morgan maintains the Overweight rating with a price target of $40.

Rama values Kiniksa shares in the low-$30s on Arcalyst alone and estimates a range in the high-$30s to low-$40s when including probability-adjusted KPL-387. The analyst believes the strategic focus on recurrent pericarditis (RP) provides clear opportunities for growth.

“As a result, we think KNSA shares are attractive from a valuation perspective, driven by both the commercial prospects of Arcalyst as well as the undervalued pipeline,” the analyst adds.

In February, Kiniksa Pharmaceuticals released a development update that said it would focus on cardiovascular indications.

The company discontinued abiprubart development in Sjögren’s Disease. The company will explore strategic alternatives for the asset.
Kiniksa also announced that it has exercised its right to terminate its exclusive license agreement for mavrilimumab with AstraZeneca Plc‘s AZN MedImmune.

Kiniksa is developing KPL-387 for recurrent pericarditis (RP) with a target profile of monthly subcutaneous (SC) dosing.

Recurrent pericarditis is a condition where the pericardium becomes inflamed again after a period of symptom-free time. The pericardium is a sac that surrounds the heart.
Kiniksa is conducting a single ascending dose (SAD) and multiple ascending dose Phase 1 trial of KPL-387 in healthy volunteers.
Kiniksa has interacted with the U.S. Food and Drug Administration (FDA) and expects to initiate a Phase 2/3 trial of KPL-387 in recurrent pericarditis in mid-2025. Phase 2 data are expected in the second half of 2026.

Arcalyst net product revenue was $122.5 million and $417.0 million for the fourth quarter and full year 2024, respectively. The company expects 2025 Arcalyst revenues of $560 million-$580 million.

Price Action: KNSA stock is down 1.6% at $21.04 at last check Thursday.

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