JP Morgan analyst Anupam Rama issued a note on Thursday maintaining a positive outlook on Kiniksa Pharmaceuticals International (NASDAQ: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 (NASDAQ: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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