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Kiniksa Pharmaceuticals (KNSA) Soars 5.8%: Is Further Upside Left in the Stock?

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Kiniksa Pharmaceuticals, Ltd. (KNSA - Free Report) shares soared 5.8% in the last trading session to close at $21.46. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% gain over the past four weeks.

The sudden rise in the share price can be attributed to the positive investor expectations regarding the continued strong sales growth of Kiniksa’s only approved drug, Arcalyst (rilonacept). The drug was initially approved by the FDA in 2021 for treating recurrent pericarditis and reducing the risk of recurrence in adults and children 12 years and older. Arcalyst’s label was later expanded to treat certain cryopyrin-associated periodic syndromes. In the fourth quarter of 2024, the drug recorded sales of $122.5 million, up 72% year over year. Kiniksa, in collaboration with Mayo Clinic, is also currently evaluating Arcalyst in a mid-stage study for treating cardiac sarcoidosis. The company’s early-stage clinical pipeline comprises another candidate, KPL-387, also being developed for recurrent pericarditis.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +120%. Revenues are expected to be $127.44 million, up 59.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Kiniksa Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 266.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on KNSA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kiniksa Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, PTC Therapeutics (PTCT - Free Report) , closed the last trading session 4.3% lower at $52.87. Over the past month, PTCT has returned 20.4%.

PTC Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.22. Compared to the company's year-ago EPS, this represents a change of -1.7%. PTC Therapeutics currently boasts a Zacks Rank of #3 (Hold).


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