Krystal Biotech Rises 15.8% in a Month: Should You | U.S. Markets

Shares of Krystal Biotech KRYS have gained 15.8% prior to now month in contrast with the industry’s growth of 4%. The stock has additionally outperformed the industry and the sector on this timeframe.

Final month, KRYS reported fourth-quarter 2024 outcomes. Whereas earnings beat estimates, gross sales missed the identical. Nonetheless, shares surged post the quarterly release, largely due to the sturdy uptake of Vyjuvek and inspiring pipeline progress.

KRYS Outperforms Business, Sector & S&P 500

Picture Supply: Zacks Funding Analysis

Robust Uptake of KRYS’ Vyjuvek  

In Could 2023, the FDA authorized Vyjuvek, the first-ever revocable gene remedy for treating sufferers aged six months or older with dystrophic epidermolysis bullosa (DEB).

DEB is a uncommon and extreme monogenic illness that impacts the pores and skin and mucosal tissues. It’s attributable to one or more mutations in a gene referred to as COL7A1.

Vyjuvek is a non-invasive, topical, redosable gene remedy designed to ship two copies of the COL7A1 gene when utilized on to DEB wounds.

Krystal recorded Vyjuvek gross sales of $290.5 million, up from $50.7 million in 2023.
It has made regular progress, securing entry and reimbursement for Vyjuvek since its launch in america.

As of February 2025, Krystal secured more than 510 reimbursement approvals for Vyjuvek in america and continues to take care of sturdy entry nationwide, together with optimistic entry determinations for 97% of lives lined below business and Medicaid plans.

Krystal is seeking to get Vyjuvek authorized in different geographies as properly.

The European Medicines Company’s (“EMA”) Committee for Medicinal Merchandise for Human Use has adopted a optimistic opinion recommending the approval of Vyjuvek (beremagene geperpavec-svdt, or B-VEC) for the remedy of wounds in sufferers with DEB.

In October, Krystal Biotech filed a new drug software with Japan’s Prescription drugs and Medical Gadgets Company. A choice is anticipated within the second half of 2025.

Krystal’s Makes Encouraging Pipeline Progress

The company can be advancing a sturdy preclinical and scientific pipeline of investigational genetic medicines within the fields of respiratory, oncology, dermatology, ophthalmology and aesthetics.

It’s evaluating KB407 for the remedy of cystic fibrosis. In December 2024, Krystal reported that single and repeat dosing of KB407 was protected and well-tolerated by sufferers in Cohorts 1 and a pair of of the continuing CORAL-1 examine.  Krystal expects to report interim molecular knowledge for Cohort 3 sufferers in mid-2025.

One other candidate, KB408, is being evaluated for the remedy of alpha-1 antitrypsin deficiency (AATD). In December, Krystal reported profitable SERPINA1 gene supply and useful alpha-1 antitrypsin expression reaching therapeutic ranges as half of an interim scientific replace for Cohorts 1 and a pair of of its ongoing 1 SERPENTINE-1 examine. Inhaled KB408 was protected and well-tolerated at each examined dose ranges.

Consequently, based mostly on this promising initial knowledge, Krystal has concurrently expanded Cohort 2 and opened Cohort 3 of SERPENTINE-1 for more complete molecular assessments at each dose ranges and expects to report outcomes from the cohorts within the second half of 2025.

KB707 is being evaluated for the remedy of stable tumors of the lung.  Enrollment in KYANITE-1 is ongoing.

Enrollment is ongoing in OPAL-1, a section I/II open label, multi-center, dose escalation and enlargement examine evaluating intratumoral KB707, both as monotherapy or together, in sufferers with regionally superior or metastatic stable tumor malignancies.

KB301 is being evaluated for the remedy of dynamic wrinkles of the décolleté. The company’s wholly-owned subsidiary, Jeune Aesthetics, beforehand introduced optimistic interim security and efficacy outcomes from the PEARL-1 examine of KB301 within the remedy of dynamic wrinkles of the décolleté. Based mostly on such knowledge, Jeune Aesthetics is at the moment gearing up to provoke a section II examine of the candidate for a similar indication within the second half of 2025.

In November 2024, Jeune Aesthetics dosed the primary subject in an ongoing, randomized and placebo-controlled section I examine PEARL-2 evaluating its second clinical-stage investigational aesthetic product KB304 for the remedy of wrinkles.

KRYS’s Valuation and Estimate Motion

Going by the price/gross sales ratio, KRYS’ shares at the moment trade at 10.58x ahead gross sales, decrease than its imply of 22.83x however larger than 1.63x for the drug industry.

Picture Supply: Zacks Funding Analysis

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has elevated to $7.07 from $5.40 over the previous 30 days. The EPS estimate for 2025 has additionally elevated to $11.03 from $9.15 over the previous 30 days.

Picture Supply: Zacks Funding Analysis

Spend money on KRYS Inventory

Massive biotech firms are typically thought-about protected havens for buyers on this sector. KRYS is a good stock to buy now, contemplating its good fundamentals and growth prospects.

The prospects for Krystal look sturdy as Vyjuvek is the primary FDA-approved gene remedy remedy for DEB. Approval in further geographies will additional increase gross sales. The profitable development of different pipeline candidates ought to bode properly too.

With a money stability of $749.6 million as of Dec.  31, 2024, the company appears to be in a good place to develop its pipeline candidates.

Krystal’s Zacks Rank & Different Shares to Contemplate

Krystal carries a Zacks Rank #2 (Purchase) at current.   

A pair of top-ranked shares within the biotech sector are Gilead Sciences GILD and BioMarin Pharmaceutical BMRN, every carrying a Zacks Rank #2 at current. You possibly can see the whole checklist of at the moment’s Zacks #1 Rank (Robust Purchase) shares right here.

Gilead Sciences

Up to now 30 days, Gilead Sciences’ EPS estimate for 2025 has elevated from $7.60 to $7.87. Throughout the identical timeframe, the determine for 2026 has elevated to $8.27 from $7.92.

GILD’s earnings beat estimates in every of the trailing 4 quarters, delivering an average shock of 19.47%.

BioMarin Pharmaceutical

Up to now 30 days, estimates for BioMarin Pharmaceutical’s 2025 EPS have elevated from $4.01 to $4.24. Estimate for 2026 EPS has elevated to $5.25 from $5.20 during the identical timeframe. BMRN’s earnings beat estimates in every of the trailing 4 quarters, delivering an average shock of 32.36%.
 

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