Krystal Biotech stock maintains Buy rating as first patient dosed in NK trial

Investing.com - Krystal Biotech (NASDAQ:KRYS), currently trading at $148.90, maintained its Buy rating from H.C. Wainwright on Thursday, with the firm reiterating its $240.00 price target following clinical trial progress. According to InvestingPro data, the company maintains a "GREAT" financial health score, with analyst targets ranging from $176 to $252.

The biotechnology company, which boasts impressive gross profit margins of 93.2% and remarkable revenue growth of 247.5% over the last twelve months, announced on July 9 that the first patient has been dosed in its Phase 1/2 EMERALD-1 study evaluating KB801 for neurotrophic keratitis (NK), a rare degenerative corneal disease caused by nerve damage in the eye.

KB801 is a re-dosable eye drop gene therapy developed using Krystal’s HSV-1-based vector, designed to deliver two transgene copies to the corneal epithelium to enable local nerve growth factor production and corneal healing.

The EMERALD-1 study is structured as a randomized, double-masked, multicenter, placebo-controlled trial that will enroll up to 27 adults with Stage 2 or Stage 3 NK, with patients randomized 2:1 to receive either KB801 or placebo twice-weekly for 8 weeks.

The primary objective of the study is to evaluate the safety and tolerability of topical ocular administration of KB801 in NK patients, with the therapy potentially offering advantages over current treatments that require six daily administrations due to the short half-life of recombinant proteins.

In other recent news, Krystal Biotech announced the initiation of its Phase 1/2 clinical trial for KB801, a gene therapy eye drop for neurotrophic keratitis (NK). The trial, named EMERALD-1, aims to address limitations of current treatments by enabling sustained expression of nerve growth factor in the eye. Meanwhile, Citi has raised its price target for Krystal Biotech to $176, noting the potential of KB801 and its improved dosing regimen. Clear Street has also initiated coverage with a Buy rating and a $190 price target, suggesting that the recent stock pullback was excessive. H.C. Wainwright has reiterated its Buy rating with a $240 price target, citing promising results from Krystal’s Phase 1/2 study of KB707 in lung cancer patients. This study showed an objective response rate of 36% with favorable safety outcomes. H.C. Wainwright also expressed confidence in the commercial progress of Vyjuvek, Krystal’s gene therapy for dystrophic epidermolysis bullosa. These developments highlight Krystal Biotech’s ongoing efforts in advancing its therapeutic pipeline.

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