Maintaining Buy Rating on Krystal Biotech: Strong VYJUVEK Sales and Promising Pipeline Despite EPS Miss

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Krystal Biotech (KRYS – Research Report) today and set a price target of $200.00.

Joseph Pantginis has given his Buy rating due to a combination of factors surrounding Krystal Biotech’s recent activities and future prospects. Despite earnings per share (EPS) for the first quarter of 2024 coming in below estimates, Krystal Biotech reported strong VYJUVEK revenue and a robust financial position with significant cash reserves. The company’s management successfully navigated a one-time reimbursement challenge, providing free vials to ensure patient continuity, which positions the company for stabilization and growth in the coming periods. Moreover, with high patient compliance and successful reimbursement approvals, the commercial launch of VYJUVEK in the US appears promising.
Further bolstering the Buy rating, Pantginis notes Krystal’s strategic moves in expanding its pipeline, with multiple clinical trials underway across various therapeutic areas. The company’s progress includes favorable regulatory opinions in Europe and Japan, setting the stage for market expansion. Additionally, the anticipation of multiple data readouts by the end of 2024, particularly for its programs in oncology, dermatology, respiratory, and aesthetics, indicates a potential for significant developments that could enhance the company’s growth trajectory and market position.

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Krystal Biotech (KRYS) Company Description:

Krystal 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.