Cardiff Oncology shares plunge after Q2 earnings miss
Tuesday, H.C. Wainwright raised the price target on Krystal Biotech (NASDAQ:KRYS) to $240 from $221, while maintaining a Buy rating on the company’s stock. The new target represents significant upside from the current trading price of $169.73. According to InvestingPro data, analyst consensus remains strongly bullish, with targets ranging from $195 to $245. This adjustment follows the recent European Commission (EC) approval of VYJUVEK for the treatment of Dystrophic Epidermolysis Bullosa (DEB) in patients from birth.
On Monday, Krystal Biotech announced that VYJUVEK had been granted marketing authorization by the EC, allowing its use throughout the European Union member states, as well as in Iceland, Norway, and Liechtenstein. This milestone represents the first international launch of VYJUVEK, building on its prior approval and successful introduction in the United States in 2023. The company’s strong financial position, with a gross profit margin of 93.09% and impressive revenue growth of 473% over the last twelve months, suggests robust commercialization capabilities. For deeper insights into Krystal Biotech’s financial health and growth prospects, check out the comprehensive analysis available on InvestingPro.
The company’s European team has initiated preparations for the first launches outside the U.S., with plans to introduce the treatment in Germany by mid-2025. Further launches in other European countries are expected, including France in the second half of 2025, although the specific availability in each country will depend on various factors, such as reimbursement process completions.
Krystal Biotech’s expansion into the European market is significant, with the identification of approximately 1000 DEB patients in Germany and France alone, highlighting the potential for VYJUVEK’s growth. The company anticipates several launches across Europe following the EC’s approval, which supports a broad label that includes treatment for patients from birth and the option for administration in healthcare settings or at home.
H.C. Wainwright expressed optimism about the drug’s prospects, noting the importance of this regulatory achievement and the potential for VYJUVEK’s continued success in the European market. The firm reaffirmed its Buy rating for Krystal Biotech and increased the price target, reflecting confidence in the company’s growth trajectory and the significant opportunity that DEB treatment represents in Europe. With a market capitalization of $4.9 billion and an "GREAT" financial health score according to InvestingPro, the company appears well-positioned to capitalize on this expansion opportunity. InvestingPro analysis indicates the stock is currently undervalued based on its proprietary Fair Value model.
In other recent news, Krystal Biotech has received European approval for VYJUVEK, marking it as the first corrective gene therapy for dystrophic epidermolysis bullosa (DEB) in Europe. This approval allows for flexible dosing and administration options across all European Union member states and other regions, with Germany set for the first launch in mid-2025. Krystal Biotech reported total revenue of $91.1 million for the fourth quarter of 2024 and $290.5 million for the year, slightly below analysts’ expectations. Despite this, the company maintains a strong financial position with $749.6 million in cash reserves. Jefferies has initiated coverage on Krystal Biotech with a Buy rating and a price target of $245, citing the potential for VYJUVEK to achieve blockbuster status. H.C. Wainwright has reaffirmed its Buy rating and set a $221 price target, expressing optimism about the company’s growth trajectory. Additionally, Jeune Aesthetics, a subsidiary of Krystal Biotech, has appointed Marc Forth as its new CEO, aiming to leverage his extensive experience to drive growth in the rejuvenative aesthetics market. These developments underscore Krystal Biotech’s strategic expansion and commitment to innovation in genetic medicine.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.