SEC Filings

Kiniksa's Semi-Finished Drug Stock Hits $76.2 Million As Samsung Takes Over Manufacturing

Total ARCALYST inventory reached $112.7 million at September 30, up from $59.9 million at year-end, as sales climbed.

Kiniksa Pharmaceuticals, which sells the heart-inflammation drug ARCALYST, now holds $112.7 million of inventory, up from $59.9 million at December 31, according to its 10-Q filed Tuesday. Semi-finished goods account for most of the build, rising to $76.2 million from $29.4 million.

A line that more than doubled in a quarter

Semi-finished goods stood at $34.2 million at June 30, so that line more than doubled in three months. Total inventory was $76.0 million then. Raw materials rose to $15.3 million from $10.0 million at year-end, while finished goods edged up to $21.1 million from $20.6 million.

Inventory absorbed $53.1 million of operating cash over the nine months, against $15.0 million a year earlier. Operating cash flow still rose to $144.9 million from $84.1 million.

The Samsung switch

The 10-Q says the FDA approved Samsung Biologics as Kiniksa's replacement contract manufacturer in June 2026. Regeneron began a technology transfer of the drug-substance manufacturing process in 2023. Kiniksa's minimum payments under its Samsung agreements total $179.1 million, of which $41.1 million falls due within one year.

Kiniksa has about $568.8 million in cash and short-term investments and no debt, the company said in its earnings release.

Sales growth and the profit split

Kiniksa is a biopharmaceutical company focused on heart and blood vessel conditions. ARCALYST, a weekly injection for recurrent pericarditis, a painful inflammation of the sac around the heart, is its only commercial product. It licenses the drug from Regeneron and splits profits evenly.

Third-quarter net product revenue was $286.0 million, about 58% above a year earlier, and net income was $47.3 million. Collaboration expenses, mainly Regeneron's profit share, rose to $105.8 million from $63.3 million. The company raised its 2026 ARCALYST sales outlook to between $1.045 billion and $1.050 billion, from $980 million to $995 million.

The company's market value was $5.7 billion after Tuesday's report.