Shares of the Kiniksa Pharmaceuticals, Ltd. (KNSA) stock were gloomy in the current market trading today on December 28, 2021. KNSA stock price saw a downtrend of 2.48% to reach $12.18 a share at the time of this writing. The trading volume was 706,241 on the last check. Let’s deep dive to explore more about this stock.
What’s Happening?
KNSA stock became bearish after the company announced the results from the Phase 3 Trial of Mavrilimumab in COVID-19-Related ARDS. According to the results, the mavrilimumab did not meet the primary efficacy endpoint. Mavrilimumab is an investigational fully human monoclonal antibody intended for the COVID-19-related acute respiratory syndrome. This antibody targets the granulocyte-macrophage colony that simulates factor receptor alpha.
The purpose of the Phase 2/3 trial was to evaluate the safety and efficacy of the mavrilimumab to treat hospitalized adult patients with hypoxia and severe COVID-19 pneumonia/hyperinflammation. 582 patients participated in the Phase 3 portion of the trial.
Financial View of the KNSA stock
At the beginning of November, Kiniksa announced third quarter 2021 financial results according to which
- The company generated $12.1 million in revenue from the sales of ARCALYST products in the third quarter of 2021.
- Net loss of KNSA stock was $30.5 million in the third quarter of 2021. Net loss in the same quarter of last year was $43.8 million.
- Kiniksa spent $42.8 million in operating expenses in the third quarter of 2021. The company reported operating expenses of $43.2 million in the same tenure of the previous year. Non-cash, share-based compensation expense in the recently reported quarter was $6.2 million. Non-cash, share-based compensation expense for the third quarter of 2020 was $5.6 million.
- The company ended the quarter with $200.2 million in cash, cash equivalents, and short-term investments.
Financial Guidance of KNSA stock
Kiniksa Pharmaceuticals expects net revenue for the ARCALYST in the fourth quarter of 2021 in the range of $16.0 million to $17.0 million. The management of the company expects that the company has enough cash, cash equivalents, and short-term investments to finance the operations till 2023.
Wrap Up
Things are not going well for KNSA stock as far as market sentiment is concerned. The situation has become challenging for the management of the company after the phase 3 trial results of the Mavrilimumab. In a nutshell, investors need to do deep research before making any decision.
