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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:80Outperform
Price Target:
$171.00
▲(11.58%Upside)
Krystal Biotech's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting significant revenue growth and strategic market expansions. Technical indicators and valuation reflect cautious optimism, while recent corporate events signal promising future developments.
Positive Factors
Clinical Trials
The first patient had been dosed in the Ph1/2 EMERALD-1 trial of KB801 for Neurotrophic Keratitis, potentially derisking the program heading into the Ph1/2.
Market Expansion
The study targets important market expansion into DEB ocular patients, suggesting potential growth opportunities for Krystal.
Target Price
The net result is an increase in the target price to $176.
Negative Factors
Commercial Uptake
The demand side for Vyjuvex has been perceived as slow, impacting initial commercial uptake.
Market Perception
KB801 is considered an underappreciated asset that may differentiate from commercial Oxervate due to a better dosing regimen and potentially superior NGF protein duration.

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 primarily makes money through the development and commercialization of its gene therapy products. Revenue is generated from product sales, particularly as its lead candidate, B-VEC, progresses through clinical trials and gains regulatory approval for commercialization. Additionally, the company may enter into strategic partnerships and collaborations with other pharmaceutical companies to co-develop or license its technology, which can provide milestone payments and royalties. While Krystal Biotech currently focuses on advancing its clinical pipeline, future revenues may also come from expanding its product offerings and entering new markets within the genetic medicine sector.

Krystal Biotech Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -5.57%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as strong revenue growth, European expansion, and a robust clinical pipeline. However, challenges like the slowdown in reimbursement approvals and unpredictable patient pausing patterns were also discussed. The company's strong financial position and operational execution suggest a positive outlook, despite some operational challenges.
Q1-2025 Updates
Positive Updates
VYJUVEK Revenue Growth
Net VYJUVEK revenue for the first quarter was $88.2 million, a 95% increase from the prior year.
European Expansion
Krystal Biotech received full approval for VYJUVEK in Europe with plans to launch in Germany and France in Q3 2025.
Consistent High Gross Margin
Gross margin remained strong at 94% for Q1 2025.
U.S. Patient Access
Reimbursement approvals for VYJUVEK in the U.S. exceeded 540, with full nationwide commercial and Medicaid coverage.
Strong Financial Position
Krystal Biotech ended Q1 with $765.3 million in total cash plus investments.
Clinical Pipeline Progress
Upcoming clinical readouts for CF, AATD, aesthetic skin conditions, and ocular lesions are expected later in 2025.
Negative Updates
Slowdown in Reimbursement Approvals
A slowdown in the number of reimbursement approvals in Q1 was noted, attributed to longer interaction times with physicians as the company reaches deeper into communities.
Patient Pausing Patterns
Patient pausing patterns after the initial induction therapy are unpredictable and may cause waviness in upcoming quarterly results.
Insurance Changes Impact
Insurance changes in Q1 affected the trends, although not as prominently as the prior year.
Company Guidance
In the Krystal Biotech First Quarter 2025 Earnings Call, the company provided several key metrics and guidance for the upcoming periods. Net revenue for VYJUVEK in Q1 2025 was reported at $88.2 million, indicating a significant 95% growth compared to the prior year. The gross margin remained consistent at 94%, while research and development expenses rose to $14.3 million, reflecting increased personnel and clinical development costs. The company maintained a strong cash position with $765.3 million in total cash and investments. Looking forward, Krystal Biotech plans to launch VYJUVEK in Germany and France in Q3 2025, with expectations to capture a 60% market share in two years, despite a temporary slowdown in the U.S. The company anticipates regulatory approval in Japan by Q3 2025 and aims to start treating patients by Q4 2025. Additionally, Krystal Biotech is advancing its clinical pipeline with upcoming readouts in CF, AATD, aesthetics, and ocular conditions later this year, which are expected to contribute to its long-term growth strategy.

Krystal Biotech Financial Statement Overview

Summary
Krystal Biotech has demonstrated strong financial performance with substantial revenue growth, high profitability margins, a solid equity position, and positive cash flow generation. The transition from losses to profitability and efficient capital management underlines robust financial health.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue290.51M50.70M0.000.000.00
Gross Profit270.45M47.60M-4.05M-2.77M-1.85M
EBITDA109.91M17.90M-145.20M-65.31M-30.32M
Net Income89.16M10.93M-139.97M-69.57M-32.17M
Balance Sheet
Total Assets1.06B818.36M558.45M626.29M310.84M
Cash, Cash Equivalents and Short-Term Investments597.52M532.18M379.17M438.10M271.26M
Total Debt7.26M8.09M8.93M8.02M11.55M
Total Liabilities109.46M39.71M36.22M32.72M18.76M
Stockholders Equity946.38M778.64M522.23M593.58M292.08M
Cash Flow
Free Cash Flow119.18M-100.60M-153.55M-116.27M-40.93M
Operating Cash Flow123.42M-88.80M-100.57M-47.94M-26.08M
Investing Cash Flow-163.44M82.64M-114.08M-226.77M-11.18M
Financing Cash Flow27.01M202.75M35.35M347.69M118.02M

Krystal Biotech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price153.25
Price Trends
50DMA
137.61
Positive
100DMA
154.89
Negative
200DMA
162.73
Negative
Market Momentum
MACD
3.39
Negative
RSI
63.94
Neutral
STOCH
71.13
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 153.25 is above the 20-day moving average (MA) of 145.69, above the 50-day MA of 137.61, and below the 200-day MA of 162.73, indicating a neutral trend. The MACD of 3.39 indicates Negative momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 71.13 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.43B36.9113.90%247.53%118.34%
68
Neutral
$8.94B-72.73%-157.53%
54
Neutral
$5.05B-282.16%72.16%9.65%
52
Neutral
$7.61B0.04-62.94%2.44%16.14%0.33%
50
Neutral
$8.37B-47.71%99.19%48.43%
47
Neutral
$4.53B435.49%412.21%1.75%
47
Neutral
$1.31B19.61-23.61%59.15%-1881.09%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRYS
Krystal Biotech
153.25
-57.44
-27.26%
CYTK
Cytokinetics
37.93
-20.57
-35.16%
SRPT
Sarepta Therapeutics
13.32
-134.24
-90.97%
BPMC
Blueprint Medicines
129.46
15.77
13.87%
AXSM
Axsome Therapeutics
106.36
20.38
23.70%
VRNA
Verona Pharma
104.95
82.80
373.81%

Krystal Biotech Corporate Events

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Krystal Biotech Presents Promising Gene Therapy at ARVO
Positive
May 6, 2025

On May 5, 2025, Krystal Biotech presented research at the ARVO Annual Meeting showcasing their HSV-1-based gene therapy vector, KB801, which demonstrated sustained nerve growth factor expression in wounded murine corneas. This development highlights KB801’s potential as a safe and effective topical treatment for neurotrophic keratitis, offering a less burdensome alternative to the current treatment, cenegermin-bkbj, which requires frequent dosing.

Product-Related Announcements
Krystal Biotech Gains EU Approval for VYJUVEK®
Positive
Apr 28, 2025

On April 23, 2025, the European Commission approved VYJUVEK® for treating dystrophic epidermolysis bullosa (DEB) in Europe, marking it as the first corrective medicine for DEB in the region. This approval allows flexible dosing at home or in healthcare settings and is expected to significantly impact Krystal Biotech‘s market presence in Europe, with plans for a launch in Germany by mid-2025.

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: Jul 10, 2025