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Krystal Biotech, Inc. (KRYS)
:KRYS
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Krystal Biotech
(NASDAQ:KRYS)
77Outperform
Positive Factors
Market Expansion
The company is poised for significant revenue growth through global market penetration, including major countries in the EU and Japan, potentially doubling the US market size.
Regulatory Approval
KRYS received a positive CHMP opinion for Vyjuvek for the treatment of wounds in DEB patients from birth.
Negative Factors
Compliance Challenges
Vyjuvek sales of $91.1M were in-line with consensus of $92.5M as management continues to guide to a gradual decrease in compliance.
Krystal Biotech (KRYS) vs. S&P 500 (SPY)
Market Cap
$5.33B
Dividend YieldN/A
Average Volume (3M)277.69K
Price to Earnings (P/E)59.7
Beta (1Y)1.13
Revenue Growth473.02%
EPS Growth1620.44%
CountryUS
Employees275
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)2.99
Shares Outstanding28,806,078
10 Day Avg. Volume289,290
30 Day Avg. Volume277,695
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)17.69
Price to Cash Flow (P/CF)24.30
P/FCF Ratio24.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$218.14Price Target Upside22.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Krystal Biotech Business Overview & Revenue Model
Company DescriptionKrystal Biotech, Inc. is a gene therapy company, which engages in developing and commercializing treatment for patients suffering from dermatological diseases. It developed a gene therapy platform, which company refer to as the Skin TARgeted Delivery platform, or STAR-D platform, that consists of a patent pending engineered viral vector based on herpes simplex virus 1, or HSV-1, and skin-optimized gene transfer technology, to develop off-the-shelf treatments for dermatological diseases for which company believe there are no known effective treatments. The company was founded by Suma M. Krishnan in December 2017 and is headquartered in Pittsburgh, PA.
How the Company Makes MoneyKrystal Biotech primarily generates revenue through the development and commercialization of its gene therapy products. The company earns money by obtaining regulatory approvals and launching its therapies into the market, particularly targeting rare dermatological conditions. Key revenue streams include direct sales of approved therapies, licensing agreements, and potential milestone and royalty payments from partnerships. Additionally, Krystal Biotech may engage in collaborations with other pharmaceutical companies, contributing to its earnings through research and development funding, as well as shared profits from co-developed products.
Krystal Biotech Financial Statement Overview
Summary
Krystal Biotech exhibits strong financial health with significant revenue growth and robust profit margins. The balance sheet shows low leverage and efficient capital management, while cash flow generation has improved, enhancing financial flexibility.Income Statement
Krystal Biotech has shown impressive financial performance with a significant increase in total revenue from $50.7 million in 2023 to $290.5 million in 2024, indicating a strong revenue growth rate. The gross profit margin is robust at 93.1% for 2024, and the net profit margin stands at 30.7%, reflecting high profitability. Despite earlier losses, the company has turned profitable, with both EBIT and EBITDA margins improving significantly.85
Very Positive
Balance Sheet
The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.008, indicating low leverage risk. The return on equity is 9.4%, reflecting efficient use of equity to generate profits. The equity ratio is high at 89.6%, suggesting a strong capital structure with a majority of assets financed by equity.78
Positive
Cash Flow
The cash flow analysis reveals a positive turnaround with a free cash flow of $119.2 million in 2024 compared to negative figures in previous years. The operating cash flow to net income ratio is 1.38, indicating effective cash generation relative to net income. The company has managed to sustain positive cash flow, enhancing its financial flexibility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 290.51M | 50.70M | 0.00 | 0.00 | 0.00 | Gross Profit |
| 270.45M | 47.60M | -4.05M | -2.77M | -1.85M | EBIT |
| 65.69M | -109.73M | -145.20M | -68.28M | -33.00M | EBITDA |
| 109.91M | 17.90M | -145.20M | -65.31M | -30.32M | Net Income Common Stockholders |
| 89.16M | 10.93M | -139.97M | -69.57M | -32.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 597.52M | 532.18M | 379.17M | 438.10M | 271.26M | Total Assets |
| 1.06B | 818.36M | 558.45M | 626.29M | 310.84M | Total Debt |
| 7.26M | 8.09M | 8.93M | 8.02M | 11.55M | Net Debt |
| -337.60M | -350.23M | -152.97M | -333.22M | -256.72M | Total Liabilities |
| 109.46M | 39.71M | 36.22M | 32.72M | 18.76M | Stockholders Equity |
| 946.38M | 778.64M | 522.23M | 593.58M | 292.08M |
| Cash Flow | Free Cash Flow | |||
| 119.18M | -100.60M | -153.55M | -116.27M | -40.93M | Operating Cash Flow |
| 123.42M | -88.80M | -100.57M | -47.94M | -26.08M | Investing Cash Flow |
| -163.44M | 82.64M | -114.08M | -226.77M | -11.18M | Financing Cash Flow |
| 27.01M | 202.75M | 35.35M | 347.69M | 118.02M |
Krystal Biotech Technical Analysis
Neutral
177.37
Price Trends
163.37
Positive
170.84
Positive
178.35
Negative
Market Momentum
4.78
Positive
54.42
Neutral
64.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRYS, the sentiment is Neutral. The current price of 177.37 is above the 20-day moving average (MA) of 175.98, above the 50-day MA of 163.37, and below the 200-day MA of 178.35, indicating a neutral trend. The MACD of 4.78 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 64.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KRYS.
Krystal Biotech Risk Analysis
Krystal Biotech disclosed 75 risk factors in its most recent earnings report. Krystal Biotech reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Krystal Biotech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.33B | 59.70 | 10.34% | ― | 473.02% | 1620.44% | |
69 Neutral | $9.77B | 41.86 | 19.71% | ― | 52.97% | ― | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
48 Neutral | $121.98M | ― | -98.10% | ― | -58.64% | -40.05% | |
45 Neutral | $675.96M | ― | -238.46% | ― | 71.17% | 23.89% | |
42 Neutral | $38.57M | ― | -270.20% | ― | 144.50% | -141.91% | |
39 Underperform | $962.71M | ― | -54.00% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
KRYS
Krystal Biotech
177.37
5.53
3.22%
SRPT
Sarepta Therapeutics
98.37
-25.39
-20.52%
BLUE
Bluebird Bio
3.73
-22.87
-85.98%
QURE
uniQure
13.78
8.96
185.89%
EDIT
Editas Medicine
1.37
-6.78
-83.19%
NTLA
Intellia Therapeutics
9.22
-18.30
-66.50%
Krystal Biotech Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 13.20% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, successful VYJUVEK launch, and robust pipeline developments. However, challenges in patient compliance, operational delays, and increased expenses were noted. The company's strategic plans for global expansion and future growth provide a positive outlook.Highlights
Strong Financial Performance
Net income per share was $3.12, up from $0.40 in 2023, marking the sixth straight quarter of positive EPS and the fourth consecutive quarter of sequential earnings growth.
Successful Launch of VYJUVEK
VYJUVEK U.S. launch continues to track in the top tier of rare disease launches with $341 million in net revenue within 18 months of launch and sequential revenue growth for six straight quarters.
Reimbursement Approvals Milestone
The company crossed 500 reimbursement approvals nationwide, with more than 510 patients approved as of February, indicating strong demand and market penetration.
Expanded Global Market Plans
Plans for VYJUVEK launch in Europe and Japan with anticipated regulatory approvals, targeting over 1,000 identified DEB patients in Germany and France alone.
Robust Pipeline Developments
Progress in gene delivery programs for cystic fibrosis, alpha-1 antitrypsin deficiency, and non-small cell lung cancer, with strong early signs of efficacy and validation of the lung as a second target tissue.
Lowlights
Patient Compliance Challenges
Patient compliance to weekly treatments was at 85% in Q4, down from 87% in Q3, indicating potential challenges in maintaining treatment adherence.
Operational Delays
Delays in patient processing due to the availability of genetic test results and prescriber familiarity with access pathways, affecting the pace of new patient starts.
Increased Operating Expenses
Higher research and development and selling, general, and administrative expenses due to increased personnel-related costs, service fees, and marketing expenses.
Reimbursement and Approval Delays
Challenges in navigating the path to success for patients and prescribers, with turnaround times still between 45 and 60 days.
Company Guidance
During the Krystal Biotech Q4 2024 earnings call, the company provided guidance on various financial and operational metrics. They reported a net income per share of $3.12 for 2024, a significant increase from $0.40 per share in 2023, marking the sixth consecutive quarter of positive EPS and the fourth of sequential earnings growth. The company achieved $341 million in net revenue within 18 months post-launch, with $91.1 million in Q4 alone, bringing total 2024 revenue to $290.5 million. They also noted a gross margin of 95%. Krystal Biotech outlined objectives for 2025, including the VYJUVEK launch in the EU and Japan, expansion of their CF and A1AT programs, and preparation for the B-VEC launch to treat eye lesions in DEB patients. The company anticipates increasing operating expenses to between $150 million and $175 million, excluding stock-based compensation, due to anticipated international launches and expanded pipeline programs. Cash on hand was reported at $344.9 million, with total cash and investments at $749.6 million, reflecting a $55 million increase from the previous quarter.Krystal Biotech Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Krystal Biotech Reports Positive Results for KYANITE-1 Study
Positive
Dec 18, 2024
Krystal Biotech announced positive initial clinical results from its KYANITE-1 study on inhaled KB707 for lung tumors, particularly showing monotherapy efficacy in advanced non-small cell lung cancer (NSCLC) patients. The study demonstrated a 27% objective response rate and a 73% disease control rate, with the potential to enhance Krystal’s positioning in cancer treatment. The company plans to expand the study to test KB707 in combination with other cancer therapies, aiming for broader application and impact.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.