Wang & Lee Group board approves 250-to-1 reverse share split
On Tuesday, H.C. Wainwright analysts reiterated a Buy rating for Krystal Biotech stock (NASDAQ: NASDAQ:KRYS) with a price target of $240.00. Currently trading at $125.36, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $155 to $245. The company maintains impressive gross margins of 93.2% and holds more cash than debt on its balance sheet. The reaffirmation follows Krystal’s presentation at ASCO 2025, where the company shared updated clinical results from its Phase 1/2 study of the inhaled formulation of KB707 in patients with advanced solid tumor malignancies affecting the lungs.
The study, which is an open-label, monotherapy, dose-escalation/expansion trial, evaluates KB707, a modified HSV-1 vector designed to deliver genes encoding human IL-12 and IL-2 cytokines to the tumor microenvironment. This aims to promote systemic immune-mediated tumor clearance and enhance local cytokine expression. The trial included 39 patients with malignant lung lesions, who received at least one dose of inhaled KB707.
Key findings from the study showed monotherapy activity in 11 evaluable non-small cell lung cancer (NSCLC) patients, with an objective response rate (ORR) of 27% as of the January 2025 data cut. An additional partial response was observed in the extended follow-up, raising the ORR to 36% as of April 15, 2025. The response was durable, with median duration of response (mDoR) and median progression-free survival (mPFS) not yet reached.
The safety profile of KB707 was favorable and well-tolerated among the patient group, with treatment-emergent adverse events (TEAEs) consistent with the underlying disease and anticipated adverse events associated with IL-12 and IL-2 administration. No Grade 4/5 adverse events were reported. InvestingPro data shows Krystal Biotech’s overall financial health score is "GREAT," with particularly strong metrics in growth and cash flow. Subscribers can access 10+ additional ProTips and a comprehensive analysis of KRYS’s financial position through the Pro Research Report.
H.C. Wainwright analysts highlighted these promising results in their continued support for Krystal Biotech, maintaining their Buy rating and $240 price target for the company’s stock. The company has demonstrated strong financial performance with $4.16 in earnings per share over the last twelve months, while trading at a relatively low P/E ratio of 28.7x considering its near-term growth prospects.
In other recent news, Krystal Biotech reported its first-quarter 2025 earnings, revealing earnings per share (EPS) of $1.20, which fell short of both the analysts’ forecast of $1.46 and the consensus estimate of $1.43. The company also reported revenue of $88.18 million, which was below the expected $99.12 million. Despite these misses, the company saw a 95% year-over-year growth in net product revenue for its flagship treatment, VYJUVEK. H.C. Wainwright maintained a Buy rating on Krystal Biotech, keeping the price target at $240.00. The firm noted that Krystal Biotech’s financial position remains strong, with $765.3 million in cash reserves, despite the revenue shortfall attributed to seasonal insurance changes. Looking forward, Krystal Biotech is preparing for the launch of VYJUVEK in Germany in the third quarter of 2025, with further launches planned in France and Japan. Additionally, the company is advancing its pipeline with several clinical readouts expected by the end of 2025, including studies for cystic fibrosis and Alpha-1 Antitrypsin Deficiency lung disease. These developments signal Krystal Biotech’s continued focus on expanding its market presence and advancing its clinical programs.
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