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KNSA, Kiniksa Pharmaceuticals International, PLC
We are a biopharmaceutical company developing and commercializing novel therapies for diseases with unmet need, with a focus on cardiovascular indications.
In 2023, Regeneron initiated a technology transfer of the manufacturing process for ARCALYST drug substance, and we are working to qualify Samsung as our replacement CDMO.
The business
What it sells, where the money comes from, the kind of company it is.
Next report Est. 10/26–10/30 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~29 days after · the wire records it on arrival
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Operating margin has reached 11% at its best but run negative through the cycle (median −9.3%) on a 88% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Stock-based pay runs about 10% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −6%, above 15% in 0 of 5 years). By owner earnings: roughly 5% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2021–2025
realized figures from each filing · older years to the left| 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMJun 2026 | |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| $39M | $220M | $270M | $423M | $678M | $841M | RevenueRevenue |
| $29M | $197M | $237M | $362M | $600M | $755M | Gross profitGross prof. |
| 76% | 90% | 88% | 86% | 89% | 90% | Gross marginGross mgn |
| 223% | 44% | 48% | 40% | 29% | 27% | SG&A / revenueSG&A/rev |
| 258% | 30% | 28% | 26% | 14% | 15% | R&D / revenueR&D/rev |
| ($157M) | $10M | ($25M) | ($46M) | $77M | $100M | Operating incomeOp. inc. |
| −406.4% | 4.4% | −9.3% | −10.8% | 11.4% | 11.9% | Operating marginOp. mgn |
| ($157M) | $11M | ($17M) | ($36M) | $89M | — | Pretax incomePretax |
| ($158M) | $183M | $14M | ($43M) | $59M | $81M | Net incomeNet inc. |
| Cash flow & returns | ||||||
| ($126M) | $6M | $13M | $26M | $138M | $185M | Operating cash flowOp. cash |
| $2M | $2M | $2M | $2M | $2M | $2M | Depreciation & amortizationD&A |
| $4M | ($205M) | ($30M) | $36M | $40M | $60M | Working capital & otherWC & other |
| $415K | $105K | $130K | $277K | $2M | $2M | CapexCapex |
| 1.1% | 0.0% | 0.0% | 0.1% | 0.2% | 0.3% | Capex / revenueCapex/rev |
| ($127M) | $6M | $13M | $25M | $136M | $183M | Owner earningsOwner earn. |
| −328.7% | 2.6% | 4.9% | 6.0% | 20.1% | 21.7% | Owner earnings marginOE mgn |
| ($127M) | $6M | $13M | $25M | $136M | $183M | Free cash flowFCF |
| −328.7% | 2.6% | 4.9% | 6.0% | 20.1% | 21.7% | Free cash flow marginFCF mgn |
| $129M | ($8M) | ($30M) | $38M | ($189M) | — | Investing cash flowInv. cash |
| $6M | $3M | $1M | $12M | $33M | — | Financing cash flowFin. cash |
| $8M | $245K | ($15M) | $76M | ($18M) | — | Change in cashΔ cash |
| -198% | 4% | -6% | -14% | 13% | 15% | ROICROIC |
| -85% | 46% | 3% | -10% | 10% | 12% | Return on equityROE |
| −85% | 46% | 3% | −10% | 10% | 12% | Retained to equityRetained/eq |
| Balance sheet | ||||||
| $182M | $191M | $206M | $244M | $414M | $526M | Cash & investmentsCash+inv |
| $4M | $13M | $21M | $42M | $16M | $23M | ReceivablesReceiv. |
| $4M | $22M | $31M | $26M | $55M | $71M | InventoryInvent. |
| $2M | $8M | $8M | $2M | $2M | $12M | Accounts payablePayables |
| $6M | $26M | $44M | $66M | $68M | $82M | Operating working capitalOper. WC |
| $196M | $243M | $276M | $332M | $527M | $669M | Current assetsCur. assets |
| $45M | $47M | $64M | $101M | $139M | $171M | Current liabilitiesCur. liab. |
| 4.4× | 5.2× | 4.3× | 3.3× | 3.8× | 3.9× | Current ratioCurr. ratio |
| $3M | $2M | $734K | $662K | $2M | — | Net PP&ENet PP&E |
| $233M | $460M | $526M | $581M | $764M | $896M | Total assetsAssets |
| ($182M) | ($191M) | ($206M) | ($244M) | ($414M) | ($526M) | Net debt / (cash)Net debt |
| $48M | $64M | $87M | $142M | $196M | — | Total liabilitiesTotal liab. |
| $185M | $396M | $439M | $438M | $568M | $654M | Shareholders’ equityEquity |
| 65.3% | 11.4% | 10.0% | 7.3% | 5.5% | 5.0% | Stock comp / revenueSBC/rev |
| Per share | ||||||
| 68.6M | 70.4M | 71.9M | 71.4M | 79.0M | 83.4M | Shares out (diluted)Shares |
| $0.56 | $3.13 | $3.76 | $5.93 | $8.58 | $10.08 | Revenue / shareRev/sh |
| $-2.30 | $2.60 | $0.20 | $-0.60 | $0.75 | $0.97 | EPS (diluted)EPS |
| $-1.85 | $0.08 | $0.18 | $0.36 | $1.73 | $2.19 | Owner earnings / shareOE/sh |
| $-1.85 | $0.08 | $0.18 | $0.36 | $1.73 | $2.19 | Free cash flow / shareFCF/sh |
| $0.01 | $0.00 | $0.00 | $0.00 | $0.02 | $0.03 | Cap. spending / shareCapex/sh |
| $2.70 | $5.63 | $6.10 | $6.14 | $7.19 | $7.84 | Book value / shareBVPS |
| 4-yr | 5-yr | |
|---|---|---|
| Revenue / share | +97.7%/yr | +97.7%/yr (4-yr) |
| Capital spending / share | +34.6%/yr | +34.6%/yr (4-yr) |
| Book value / share | +27.8%/yr | +27.8%/yr (4-yr) |
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business turned $59M of profit into $136M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | $59M | ($43M) | $14M | $183M | ($158M) |
| Depreciation & amortizationnon-cash charge added back | +$2M | +$2M | +$2M | +$2M | +$2M |
| Stock-based compensationreal costnon-cash, but a real cost | +$37M | +$31M | +$27M | +$25M | +$25M |
| Working capital & othertiming of cash in and out, other non-cash items | +$40M | +$36M | −$30M | −$205M | +$4M |
| Cash from operations | $138M | $26M | $13M | $6M | ($126M) |
| Capital expenditurecash put back in to keep running and to grow | −$2M | −$277K | −$130K | −$105K | −$415K |
| Owner earnings | $136M | $25M | $13M | $6M | ($127M) |
| Owner-earnings marginowner earnings ÷ revenue | 20% | 6% | 5% | 3% | -329% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $37M), owner earnings is nearer $99M.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
Will it survive?
- No meaningful interest burdenLittle or no interest expense reported
What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
- Net cash, debt-freeCash $166M + ST investments $248M − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $414M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 8 + DIO 258 − DPO 10 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Not enough dataIndustry peers: median 4%
What this means
The filing data didn't include the inputs for this check.
- High, recently turned positivelatest $136M = operating cash $138M − maintenance capex $2M; positive each of the last 3 years, after an earlier loss stretch (5-yr median 5%)Industry peers: median 8%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 20% of revenue this year, a 5% median across 5 years. Treating stock comp as the real expense it is (less $37M of SBC) leaves $99M.
- Cash-backedCash from ops $138M ÷ net income $59M
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 1.01×MaintainingCapex $2M ÷ depreciation & amortization as filed $2M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
The promise and the pay packet
- Is the buyback buying ownership, or mopping up? 5.5%The count is risingStock compensation $37M (fiscal 2025), 5.5% of revenue · no repurchases · diluted shares +12.2% since 2022
What this means
Stock handed to employees is a real cost paid in the owner's own currency: it is charged against profit, but the shares it creates are permanent. Many companies repurchase stock at the same time, which looks like a return of capital and often is not — if the count barely moves, the cash merely cancelled the pay packet and bought the owner nothing. The three states worth telling apart are a count genuinely shrinking, a count standing still despite large repurchases, and a count rising because the issuance was never offset at all.
Graham’s defensive tests · 1 of 3 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $678M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 3.79×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Earnings stability MissA profit every year (5-yr record) · 2 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record —Uninterrupted dividends · no dividend line tagged in the data
What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.13/share (latest year $0.76), the averaged base the calculator's gate runs on, and book value is $7.32/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2021–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 3 of 5
What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
- Operating margin −201% → 0% (2-yr avg ends)
In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.
What this means
Through the cycle the operating margin widened — about −201% early to 0% lately, median −9% — pricing power intact or improving.
- Worst year 2021 · −406.4% op. margin
What this means
Operations went underwater in 2021, understand why before trusting the good years.
- Share count +3.6%/yr
What this means
The share count is rising, dilution works against you on a per-share basis.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Jun 30, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
- Cash & short-term investments$526M
- Receivables$23M
- Inventory$71M
- Other current assets$48M
- Accounts payable$12M
- Other current liabilities$159M
From the company's latest filing.
How the cash was used, 2021–2025
Over the record, the business generated $56M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.
- Reinvested$2M · 4%
- Retained (debt / cash)$54M · 96%
- Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $344M.
- Net change in share count21.6%
The diluted count rose from 69M to 83M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
- Return on what it retained170%
Of the earnings it kept rather than paid out ($55M over the span), annual owner earnings (first three years vs last three) grew $94M, so each retained $1 added about 1.70 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2021 | Sanj K. Patel | $6.6M | $579k | ($127M) |
| 2022 | Sanj K. Patel | $6.1M | $8.7M | $6M |
| 2023 | Sanj K. Patel | $5.3M | $6.8M | $13M |
| 2024 | Sanj K. Patel | $7.0M | $8.7M | $25M |
| 2025 | Sanj K. Patel | $10.8M | $28.4M | $136M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership15.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- CEO pay ratio35:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
- Stock-based compensation$37M
The slice of the business handed to employees in shares in fiscal 2025, 5.5% of revenue, equal to 47.9% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Revenue recognition, Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Pharmaceuticals
The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.
| Company | Revenuelatest FY, USD | Gross marginmedian over the record | Op. marginmedian over the record | ROICmedian over the record | Owner earn. marginmedian over the record |
|---|---|---|---|---|---|
| CORTCorcept Therapeutics Incorporated | $761M | 98% | 30.6% | 25% | 34% |
| EBSEmergent BioSolutions Inc. | $743M | 60% | 12.5% | 6% | 8% |
| PCRXPacira BioSciences | $726M | 73% | 3.7% | 2% | 16% |
| SUPNSupernus Pharmaceuticals Inc. | $719M | 90% | 20.0% | 11% | 26% |
| KNSAKiniksa Pharmaceuticals International, PLC | $678M | 88% | -9.3% | -6% | 5% |
| RAREUltragenyx | $673M | 98%1y | -126.5% | -92% | -105% |
| AXSMAxsome Therapeutics Inc. | $638M | 90%1y | -79.2% | -4778%1y | -44% |
| TGTXTG Therapeutics Inc. | $616M | 88%4y | 12.7%3y | -572% | -12%3y |
| Group median | — | 89% | 8.1% | -2% | 7% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Kiniksa Pharmaceuticals International, PLC has delivered.
Kiniksa Pharmaceuticals International, PLC’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.
Through the cycle, Kiniksa Pharmaceuticals International, PLC earns about $37M on its 5.4% median owner-earnings margin. This year’s 20.1% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.
—
9.0% = the 4.65% 10-year Treasury (Aug 19, 2026) + 4.35 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.65%, as of Aug 19, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Free cash flow $183M on 78M shares outstanding (a weighted basic average, the only count this filer tags); net cash $526M. The if-converted diluted count is 83M, 8% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($2M) runs well above depreciation ($2M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $183M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Manual order: ← KNF its page in the Manual KNSL →
Industry order: ← KMDA the Pharmaceuticals chapter KURA →