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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:75Outperform
Price Target:
$169.00
▲(13.42% Upside)
Krystal Biotech's strong financial performance and strategic global expansion are the primary drivers of its stock score. While technical indicators and valuation suggest some caution, the company's robust cash flow and minimal leverage provide a solid foundation for future growth. The anticipated short-term revenue decline and operational challenges are notable risks but are balanced by positive corporate developments and long-term growth potential.
Positive Factors
Clinical Advancements
Promising data for inhaled KB707 demonstrated monotherapy activity and durable responses in heavily pre-treated patients, including a 36% objective response rate (ORR).
International Expansion
Recent approvals in the EU and Japan should permit greater opportunities for topline growth ex-US.
Revenue Performance
Revenue for the second quarter was $96.0 million, beating both estimate of $90.9 million and consensus of $92.2 million, representing a quarter-over-quarter increase of 9%.
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 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., a clinical stage biotechnology company, engages in the field of redosable gene therapy to treat serious rare diseases in the United States. Its lead product candidate is beremagene geperpavec (B-VEC), which is in Phase III clinical study to treat dystrophic epidermolysis bullosa. The company is also involved in developing KB105 that is in Phase I/II clinical study for treating patients with deficient autosomal recessive congenital ichthyosis; KB301, which is in Phase I/II clinical stage for treating wrinkles and other presentations of aged or damaged skin; KB407 that is in preclinical stage for cystic fibrosis; and KB104, which is in preclinical stage for netherton syndrome. Its discovery stage product candidates include KB5xx for treating chronic skin diseases, KB3xx to treat aesthetic skin conditions, and KB3xx product. Krystal Biotech, Inc. was founded in 2015 and is headquartered in Pittsburgh, Pennsylvania.
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: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
Krystal Biotech's earnings call highlights strong financial performance and strategic global expansion, with significant revenue growth and profitability. However, challenges such as anticipated revenue decline in Q3, ongoing sales force scaling, and potential market entry delays in Europe and Japan present concerns.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth for VYJUVEK
Q2 net VYJUVEK revenue was $96 million, with total net revenue since launch exceeding $525 million. The company achieved a 9% growth over the first quarter of 2025.
Global Expansion Milestones
Approval of VYJUVEK by Japan's Ministry of Health and plans for European launch in Germany and France. The company has established dedicated commercial teams in both countries.
Positive Financial Performance
Continued profitability with $1.29 per diluted share, marking two years of consistently positive EPS. Net income for the quarter was $38.3 million.
Pipeline Progress
Clinical data updates for oncology and aesthetic programs, progression of KB408 into repeat dosing for AATD, and new study starts for lung and eye diseases.
Negative Updates
Anticipated Revenue Decline in Q3
Expectation of Q3 revenues to come in below Q2 due to summer pausing trends and unpredictability in patient restart dynamics.
Operational Challenges in Scaling
Sales force hiring is still underway, with full impact of new hires only expected over the next few quarters. Compliance while on drug is expected to trend down as patient mix changes.
Potential Delays in European and Japanese Markets
European launch is subject to the continuity of the Accès Précoce program in France, and Japanese launch awaits pricing decision.
Company Guidance
During the Krystal Biotech Q2 2025 earnings call, the company provided guidance on several key metrics. Krystal reported a net product revenue of $96 million for VYJUVEK, contributing to a total net revenue of over $525 million since its launch. The company achieved an earnings per share (EPS) of $1.29 fully diluted, marking two years of consistent positive EPS. The compliance rate for patients on VYJUVEK was reported at 82%, with an expectation of a downward trend as severe patients achieve durable wound closure. The company anticipates a temporary decline in Q3 revenues due to summer pauses, with a return to growth in Q4 driven by patient restarts and sales force expansion. Krystal highlighted its global expansion plans, with upcoming launches in Europe and Japan, and maintained a strong financial position with over $820 million in cash and investments.

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
Positive
Last Price149.00
Price Trends
50DMA
145.95
Positive
100DMA
145.31
Positive
200DMA
158.33
Negative
Market Momentum
MACD
0.94
Negative
RSI
53.61
Neutral
STOCH
69.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRYS, the sentiment is Positive. The current price of 149 is above the 20-day moving average (MA) of 145.01, above the 50-day MA of 145.95, and below the 200-day MA of 158.33, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 69.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$4.27B30.3115.61%116.09%35.29%
68
Neutral
$9.11B-36.38%34.29%
58
Neutral
$6.05B-280.68%69.83%22.16%
51
Neutral
$7.86B-0.33-41.57%2.23%23.26%-2.03%
50
Neutral
99.19%48.43%
49
Neutral
$1.78B19.61-4.76%64.89%-221.56%
46
Neutral
$4.23B435.49%2635.74%4.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRYS
Krystal Biotech
149.00
-36.95
-19.87%
CYTK
Cytokinetics
49.62
-5.27
-9.60%
SRPT
Sarepta Therapeutics
18.16
-116.63
-86.53%
BPMC
Blueprint Medicines
129.46
36.85
39.79%
AXSM
Axsome Therapeutics
123.47
27.91
29.21%
VRNA
Verona Pharma
106.10
78.58
285.54%

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.

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.

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.

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.

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 23, 2025