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On Wednesday, H.C. Wainwright reaffirmed a Buy rating on Krystal Biotech (NASDAQ:KRYS) with a steady price target of $240.00. Analysts at the firm addressed Krystal Biotech’s first-quarter financial performance, which was disclosed on May 6, 2025. The company reported earnings per share (EPS) of $1.20, falling short of both H.C. Wainwright’s projection of $1.56 and the consensus estimate of $1.43. Revenue from VYJUVEK, Krystal’s flagship product, reached $88.2 million for the quarter, which was below the estimates of $94 million by H.C. Wainwright and $96.2 million by consensus. According to InvestingPro data, the company maintains impressive gross profit margins of 93.2% and has generated $333.45 million in revenue over the last twelve months.
Despite the lower-than-expected revenue, Krystal Biotech concluded the quarter with a robust financial position, boasting $765.3 million in cash reserves. InvestingPro analysis reveals the company holds more cash than debt and maintains a strong current ratio of 9.65, indicating excellent liquidity. Company management anticipated the revenue shortfall, attributing it to seasonal insurance changes that typically affect the broader healthcare industry. They noted, however, that the revenue impact was less pronounced than in the first quarter of the previous year, thanks to the implementation of a permanent J code for VYJUVEK. (Discover 12 more exclusive InvestingPro Tips and comprehensive financial metrics with an InvestingPro subscription.)
Krystal Biotech also observed a recent decrease in new patient start forms, which may be due to potential new patients being more integrated within their communities and possibly exhibiting milder forms of Dystrophic Epidermolysis Bullosa (DEB). In response to this temporary deceleration, the company is intensifying its sales and field activities to enhance awareness and education within the DEB community. The stock has recently pulled back, trading near its 52-week low, though InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.
Looking ahead, Krystal Biotech is set to launch VYJUVEK in Germany in the third quarter of 2025, with subsequent launches in France and Japan. In addition to VYJUVEK, the company’s pipeline is progressing, with four clinical catalysts expected by the end of 2025. These include top-line data from the KB407 Phase 1 study for cystic fibrosis, updated molecular data from the KB408 Phase 1 study for Alpha-1 Antitrypsin Deficiency (AATD) lung disease, an interim readout from the KB304 Phase 1 study for elastin delivery in aesthetic skin conditions, and top-line data from the KB803 study for treating lesions in the eyes of DEB patients. With analysts forecasting significant revenue growth of 54% for FY2025, investors seeking detailed analysis can access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Krystal Biotech Inc. reported its first-quarter 2025 financial results, revealing a shortfall in both earnings per share (EPS) and revenue compared to analysts’ expectations. The company posted an EPS of $1.20, which was below the forecasted $1.46, while revenue came in at $88.18 million, falling short of the anticipated $99.12 million. Despite the earnings miss, Krystal Biotech demonstrated a 95% year-over-year growth in net product revenue for its flagship treatment, VYJUVEC. The company is preparing for market launches in Europe and Japan, with plans to launch in Germany and France by Q3 2025 and in Japan by Q3-Q4 2025. Additionally, Krystal Biotech is advancing its new ophthalmology program, KB801, for neurotrophic keratitis and expects clinical readouts in several areas, including cystic fibrosis and aesthetics. The company’s net income for the quarter was $35.7 million, equating to $1.24 per basic share. Research and development costs increased to $14.3 million, and general and administrative expenses rose to $32.7 million. The company remains focused on expanding its market presence and advancing its clinical programs.
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