Early Proof-of-Concept and Platform Potential Drive Buy Rating on Krystal Biotech Despite Pending Lung Function Data

William Blair analyst Sami Corwin has maintained their bullish stance on KRYS stock, giving a Buy rating today.

Sami Corwin has given his Buy rating due to a combination of factors tied to Krystal Biotech’s emerging data and platform potential. He views the latest KB407 results in cystic fibrosis as particularly encouraging because they demonstrate robust delivery and sustained expression of CFTR throughout the lungs, a notoriously difficult organ to target given the disease’s mucus burden and inflammation. The observed transduction profile, with expression lasting up to four days, supports the possibility of a practical, low-frequency dosing schedule, which could be commercially attractive and patient-friendly. Corwin also highlights that the safety and tolerability of repeat dosing with Krystal’s inhaled HSV-1 gene delivery platform strengthens confidence not only in KB407, but also in pipeline assets like KB408 for AAT deficiency and KB707 in lung cancer.

At the same time, he notes that the absence of lung function data (such as ppFEV) means the degree of clinical benefit from the current level of CFTR expression is not yet fully established. While Corwin believes that achieving around one-third of cells expressing CFTR should translate into some functional improvement, he is waiting for more detailed results from the CORAL-3 trial and interim ppFEV readouts to better quantify efficacy and reduce remaining risk. Overall, the combination of compelling early biological proof-of-concept, a differentiated inhaled gene-delivery platform with apparent repeat-dose safety, and meaningful upside if functional outcomes align with the biomarker data underpins his positive stance on the stock and supports maintaining a Buy rating.

In another report released today, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $282.00 price target.