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Krystal Biotech (KRYS)
NASDAQ:KRYS
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Krystal Biotech (KRYS) AI Stock Analysis

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KRYS

Krystal Biotech

(NASDAQ:KRYS)

Rating:71Outperform
Price Target:
$153.00
▲(6.53% Upside)
Krystal Biotech's strong financial performance and positive corporate developments are key strengths, supporting a solid overall score. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The anticipated revenue decline in Q3 also poses a potential risk.
Positive Factors
International Market Expansion
Recent approvals in the EU and Japan should permit greater opportunities for topline growth ex-US.
Pipeline Development
The cystic fibrosis and neurotrophic keratitis programs are potential factors that could positively shift the company's narrative.
Product Launch
Vyjuvek's EU launch in Germany and France is on track, with additional opportunities arising from the Japanese launch.
Negative Factors
Reimbursement Delays
Krystal mentioned that they are behind on the goal of reaching 720 reimbursement approvals originally targeted for September/October, with that target now shifted to early next year.
Revenue Expectations
Near-term expectations for growth are dampened as management expects 3Q revenue to be below 2Q numbers based on patient pausing trends.
Unpredictability Concerns
Management cited Vyjuvek’s 'inherent unpredictability' which raises concerns about consistent performance.

Krystal Biotech (KRYS) vs. SPDR S&P 500 ETF (SPY)

Krystal Biotech Business Overview & Revenue Model

Company DescriptionKrystal Biotech, Inc. is a biotechnology company specializing in developing innovative gene therapies for the treatment of rare diseases, particularly those affecting the skin. The company focuses on its lead product candidate, KB103, which is designed to address dystrophic epidermolysis bullosa (DEB), a rare genetic skin disorder. Krystal Biotech utilizes its proprietary Skin Drug Delivery System (SDDS) technology to deliver genes directly to the skin, aiming to improve the lives of patients with genetic skin disorders.
How the Company Makes MoneyKrystal Biotech generates revenue primarily through the development and commercialization of its gene therapy products. The company's revenue model is based on potential product sales upon regulatory approval and market introduction of its therapies. Additionally, Krystal may engage in collaborative partnerships with pharmaceutical companies for research, development, and distribution, which can provide upfront payments, milestone payments, and royalties on sales. The company is also exploring avenues for funding through grants and research collaborations that support its clinical programs, enhancing its financial stability as it advances its product pipeline.

Krystal Biotech Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: -8.51%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and strategic growth through successful VYJUVEK launches and R&D progress. However, the anticipated revenue decline in Q3 2025 due to seasonal and patient variability challenges tempers the positive outlook.
Q2-2025 Updates
Positive Updates
Successful VYJUVEK Launch and Expansion
VYJUVEK net revenue for Q2 2025 was $96 million, bringing total net revenue since launch to over $525 million. The launch in Europe and Japan is expected to further boost growth.
Operational Profitability Maintained
Krystal Biotech reported profitability with $1.29 per share fully diluted for the quarter, marking two years of consistently positive EPS.
Strong Financial Position
The company closed the quarter with over $820 million in cash and investments, supporting upcoming launches and R&D objectives.
Regulatory Approvals in Japan
VYJUVEK received approval from Japan's Ministry of Health, Labour and Welfare with a broad label similar to Europe, facilitating flexible treatment administration.
Progress in Genetic Medicine Pipeline
Significant progress in R&D with multiple ongoing studies in oncology, lung, and eye diseases, including promising data from inhaled KB707 for NSCLC.
Negative Updates
Anticipated Revenue Decline in Q3 2025
The company expects Q3 revenues to be lower than Q2 due to seasonal pauses and variability in patient restarts.
Challenges in Predicting Patient Usage
The cadence of patient restarts remains highly variable and difficult to predict, affecting revenue stability.
Potential Delays in European Launch
Concerns about the continuity of the Accès Précoce program in France could impact the timing of the VYJUVEK launch.
Company Guidance
During the Krystal Biotech Q2 2025 earnings call, several key metrics and guidance points were highlighted. The company's Q2 net VYJUVEK revenue was reported at $96 million, contributing to a total of over $525 million since its launch. The revenue increase was partly due to patients resuming treatment and the ongoing expansion of the sales team. The gross margin remained consistent at 93%, and the company achieved an EPS of $1.29 per share fully diluted, marking two years of consistently positive earnings per share. Compliance with the drug was reported at 82%, although it is expected to decrease as severe patients achieve durable wound closure. Krystal anticipates 3Q revenues to be lower due to seasonal pausing but expects a return to growth in Q4. The company reported a net income of $38.3 million for the quarter, with over $820 million in cash and investments, positioning it well for upcoming launches in Europe and Japan, and further research and development objectives.

Krystal Biotech Financial Statement Overview

Summary
Krystal Biotech demonstrates strong financial health with significant revenue and profit growth, robust margins, and improved cash flow generation. The transition from losses to profitability and efficient capital management are notable. Maintaining this trajectory is crucial for sustained growth.
Income Statement
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue359.20M290.51M50.70M0.000.000.00
Gross Profit333.84M270.45M47.60M-4.05M-2.77M-1.85M
EBITDA151.31M109.91M17.90M-145.20M-65.31M-30.32M
Net Income146.72M89.16M10.93M-139.97M-69.57M-32.17M
Balance Sheet
Total Assets1.14B1.06B818.36M558.45M626.29M310.84M
Cash, Cash Equivalents and Short-Term Investments681.99M597.52M532.18M379.17M438.10M271.26M
Total Debt1.62M7.26M8.09M8.93M8.02M11.55M
Total Liabilities97.75M109.46M39.71M36.22M32.72M18.76M
Stockholders Equity1.04B946.38M778.64M522.23M593.58M292.08M
Cash Flow
Free Cash Flow185.44M119.18M-100.60M-153.55M-116.27M-40.93M
Operating Cash Flow195.40M123.42M-88.80M-100.57M-47.94M-26.08M
Investing Cash Flow-183.40M-163.44M82.64M-114.08M-226.77M-11.18M
Financing Cash Flow-4.88M27.01M202.75M35.35M347.69M118.02M

Krystal Biotech Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price143.62
Price Trends
50DMA
142.06
Positive
100DMA
149.87
Negative
200DMA
160.52
Negative
Market Momentum
MACD
-1.44
Positive
RSI
49.50
Neutral
STOCH
33.12
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 143.62 is below the 20-day moving average (MA) of 146.59, above the 50-day MA of 142.06, and below the 200-day MA of 160.52, indicating a neutral trend. The MACD of -1.44 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.12 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 (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$3.98B27.9815.61%116.09%35.29%
68
Neutral
$9.05B-36.38%34.29%
54
Neutral
$1.75B19.61-4.76%64.89%-221.56%
53
Neutral
$5.19B-280.68%69.83%22.16%
47
Neutral
C$212.69M-2.68-24.76%3.10%19.76%0.48%
46
Neutral
$3.98B435.49%2635.74%4.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRYS
Krystal Biotech
143.62
-44.72
-23.74%
CYTK
Cytokinetics
34.31
-21.57
-38.60%
SRPT
Sarepta Therapeutics
18.80
-114.28
-85.87%
AXSM
Axsome Therapeutics
105.23
20.40
24.05%
VRNA
Verona Pharma
105.19
77.88
285.17%

Krystal Biotech Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Krystal Biotech Gains Approval for DEB Treatment in Japan
Positive
Jul 25, 2025

On July 24, 2025, Japan’s Ministry of Health, Labour and Welfare approved VYJUVEK® for treating dystrophic epidermolysis bullosa (DEB), marking it as the first genetic medicine for DEB in Japan. This approval allows flexible administration, including home dosing, and is based on a comprehensive clinical dataset showing positive outcomes. The approval is a significant milestone for Krystal Biotech, positioning them as a leader in genetic medicine for DEB and expanding their market presence in Japan, with commercial launch expected by the end of the year.

The most recent analyst rating on (KRYS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Krystal Biotech’s Subsidiary Reports Positive Phase 1 Results
Positive
Jul 24, 2025

On July 24, 2025, Jeune Aesthetics, a subsidiary of Krystal Biotech, announced positive results from a Phase 1 study of KB304 for treating wrinkles of the décolleté. The study showed significant improvements in skin attributes such as wrinkles and elasticity, with KB304 outperforming placebo. The company plans to advance KB304 to Phase 2 development, aiming to fill a market gap for FDA-approved injectables in this area.

The most recent analyst rating on (KRYS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Krystal Biotech Begins Phase 1/2 Trial for KB801
Positive
Jul 9, 2025

On July 9, 2025, Krystal Biotech announced the dosing of the first patient in its Phase 1/2 trial of KB801, a gene therapy eye drop for neurotrophic keratitis (NK), a degenerative corneal disease. The trial, named EMERALD-1, aims to evaluate the safety and efficacy of KB801, which promises to reduce treatment burden by enabling sustained expression of nerve growth factor in the eye. The company also hosted a conference call and webcast to discuss the trial and its implications, highlighting the potential of KB801 to address the unmet needs of NK patients.

The most recent analyst rating on (KRYS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Product-Related Announcements
Krystal Biotech Reports Promising Results for KB707 Trial
Positive
Jun 2, 2025

On June 2, 2025, Krystal Biotech presented a clinical update on its Phase 1/2 trial of inhaled KB707, a novel HSV-based immunotherapy for advanced lung tumors, at the ASCO Annual Meeting. The study showed that KB707 was safe, well-tolerated, and demonstrated promising anti-tumor effects, with a 36% objective response rate in heavily pre-treated non-small cell lung cancer patients. The results suggest potential synergy with immune checkpoint inhibitors, and further evaluation is ongoing.

The most recent analyst rating on (KRYS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Krystal Biotech Holds Annual Stockholders Meeting
Positive
May 19, 2025

On May 16, 2025, Krystal Biotech held its Annual Meeting of Stockholders where key decisions were made, including the election of Class II directors and the ratification of KPMG LLP as the independent registered public accounting firm for 2025. Additionally, stockholders approved the compensation of the company’s named executive officers for the fiscal year 2024, reflecting confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (KRYS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Krystal Biotech Expands Gene Therapy Platform
Positive
May 13, 2025

On May 9, 2025, Krystal Biotech presented a poster at the Society for Investigative Dermatology Annual Meeting, detailing the expansion of its HSV-1-based gene therapy platform to treat Hailey-Hailey and Darier diseases. The studies demonstrated that the company’s gene therapy vectors, KB111 and KB112, can effectively transduce keratinocytes and express ATPases with minimal toxicity, indicating promising potential for treating these rare skin conditions.

The most recent analyst rating on (KRYS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 11, 2025