Market Underestimates Kiniksa Pharmaceuticals’ Abiprubart Potential Despite Positive Industry Indicators

In a report released today, Eva Fortea Verdejo from Wells Fargo maintained a Buy rating on Kiniksa Pharmaceuticals (KNSA – Research Report), with a price target of $34.00.

Eva Fortea Verdejo’s rating is based on her conviction about the potential of Kiniksa Pharmaceuticals’ abiprubart in treating Sjogren’s Syndrome and the overall underestimation of the drug by the market. The recent acquisition of the royalty interest in frexalimab by Royalty Pharma for a significant cash sum underscores the value and promise of the CD40/CD40L targeted therapies, which includes Kiniksa’s abiprubart. Verdejo views the $525 million cash deal as a positive indicator for the class of drugs and suggests that the confidence in frexalimab’s market potential, with estimates of about $5 billion at peak sales, mirrors the potential success for abiprubart.

Moreover, Verdejo believes that the deal between Royalty Pharma and Sanofi validates the CD40/CD40L target and differentiates abiprubart due to its subcutaneous profile and potential for less frequent dosing. The analyst contends that the “pipeline in a product” potential discussed during Royalty Pharma’s earnings call is a bullish sign for abiprubart. Additionally, Verdejo points to the upcoming Phase 2 study and potential positive data from a related compound, iscalimab, as catalysts for value realization in Kiniksa’s stock. This supports her Buy rating and the belief that there is a 15-25% upside potential in the stock price from these levels.

In another report released on May 1, J.P. Morgan also maintained a Buy rating on the stock with a $30.00 price target.

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Kiniksa Pharmaceuticals (KNSA) Company Description:

Kiniksa Pharmaceuticals Ltd. is a biopharmaceutical company, which engages in discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical need. Its products include Rilonacept, Mavrilimumab, KPL-716, KPL-045, and KPL-404. The company was founded by Sanj K. Patel, Stephen Frank Mahoney, Krisha S. Mahoney, Thomas W. Beetham, Christopher Heberlig, Carsten Boess, Rasmus Holm-Jorgensen, Gregory Alex Grabowksi, Aaron Isadore Young, Eben P. Tessari, Jennifer Lynne Mason, and Mickenzie Elizabeth Gallagher in July 2015 and is headquartered in Hamilton, Bermuda.