Krystal Biotech Sees 15.8% Share Increase Amid Strong Product Demand

Shares of Krystal Biotech (KRYS) have climbed 15.8% over the past month, outperforming the industry growth rate of 4%. This stock has consistently surpassed both industry and sector performance during this period.

In its report for the fourth quarter of 2024, KRYS announced earnings that exceeded estimates, although sales fell short of expectations. Nevertheless, shares rallied following the quarterly results, largely driven by the robust adoption of Vyjuvek and promising advancements in the company’s pipeline.

Krystal’s Performance Compared to Industry and S&P 500

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Market Impact of Vyjuvek’s Growth

The FDA approved Vyjuvek in May 2023, marking the first reversible gene therapy available for patients aged six months or older suffering from dystrophic epidermolysis bullosa (DEB).

DEB is a rare genetic disorder that severely affects skin and mucosal tissues, caused by mutations in the COL7A1 gene.

Vyjuvek serves as a non-invasive, topical, redosable gene therapy that delivers two copies of the COL7A1 gene directly to DEB wounds. Since its launch, Krystal has reported sales of $290.5 million for Vyjuvek, a significant increase from $50.7 million the previous year. The company has made steady progress in securing access and reimbursement since launching in the U.S.

As of February 2025, Krystal achieved over 510 reimbursement approvals for Vyjuvek, ensuring broad access, with positive coverage for 97% of patients under commercial and Medicaid plans. The company is also pursuing approvals in additional markets.

The European Medicines Agency (EMA) recently issued a favorable opinion for Vyjuvek’s approval, and in October, Krystal submitted a new drug application to Japan’s Pharmaceuticals and Medical Devices Agency, with a decision anticipated in the second half of 2025.

Advancements in Krystal’s Pipeline

In addition to Vyjuvek, Krystal Biotech is progressing a strong pipeline of investigational genetic therapies targeting various fields, including respiratory, oncology, dermatology, ophthalmology, and aesthetics.

The company is currently evaluating KB407 for cystic fibrosis treatment. In December 2024, results indicated that both single and multiple doses of KB407 were safe and well-tolerated in patients during the ongoing CORAL-1 study. Interim molecular data for Cohort 3 is expected in mid-2025.

Another investigational product, KB408, targets alpha-1 antitrypsin deficiency (AATD). Krystal’s December update highlighted successful gene delivery and therapeutic protein expression in initial study cohorts. Consequently, the company has expanded Cohort 2 and added Cohort 3 for additional evaluations, with results expected in the latter half of 2025.

KB707 is being tested for lung solid tumors, with enrollment for the KYANITE-1 study currently ongoing. Similarly, the OPAL-1 study, assessing intratumoral KB707 in locally advanced or metastatic solid tumors, is also progressing.

Additionally, KB301 targets dynamic wrinkles in the décolleté. The wholly-owned subsidiary, Jeune Aesthetics, reported positive interim results for KB301, leading to a planned phase II study launch in the second half of 2025. In November 2024, Jeune Aesthetics initiated a phase I study, PEARL-2, for KB304, another candidate for wrinkle treatment.

Valuation Metrics and Earnings Estimates

Currently, KRYS shares trade at a price/sales ratio of 10.58x forward sales, lower than the historical mean of 22.83x and higher than 1.63x for the broader drug industry.

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The Zacks Consensus Estimate for 2025 earnings per share (EPS) has recently increased to $7.07 from $5.40 over the past month, while the EPS estimate for 2025 has risen to $11.03 from $9.15.

Image Source: Zacks Investment Research

Current Zacks Rank and Stock Recommendations

Krystal Biotech holds a Zacks Rank #2 (Buy) at the present moment.

Among other top-rated stocks in the biotech sector, Gilead Sciences (GILD) and BioMarin Pharmaceutical (BMRN) share a Zacks Rank #2 as well. You can see more about these investment opportunities.