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Investing.com - TD Cowen maintained its Buy rating and $202.00 price target on Krystal Biotech (NASDAQ:KRYS) after the company received an updated label for its Vyjuvek treatment. The company, currently trading at $154.06, shows impressive financial health with a 93.37% gross profit margin and strong revenue growth of 116% over the last twelve months. According to InvestingPro analysis, the stock appears undervalued at current levels.
The U.S. Food and Drug Administration has approved an updated label for Vyjuvek that allows for at-home self-dosing of wounds in dystrophic epidermolysis bullosa (DEB) patients from birth, including first treatments.
TD Cowen believes this label update will increase near-term patient compliance first, followed by promoting new patient starts, potentially driving fourth-quarter tailwinds for U.S. Vyjuvek sales.
The research firm noted it is too early to gauge the full extent of the benefit from the label update, which expands treatment options for patients with the rare genetic skin condition.
TD Cowen expects the label change to provide some buffer against fourth-quarter and summer seasonality effects on sales performance.
In other recent news, Krystal Biotech announced that the U.S. Food and Drug Administration has approved an expanded label for its DEB treatment, VYJUVEK, allowing it to be used for patients from birth and offering more flexibility in wound dressing management. On the financial front, Krystal Biotech reported second-quarter revenues of $96 million for VYJUVEK, surpassing both BofA Securities’ estimate of $95 million and the consensus expectation of $92 million. However, BofA Securities lowered its price target for the company to $182, expressing concerns about the near-term growth trajectory, despite maintaining a Buy rating.
Krystal Biotech is also advancing its KB707 program, focusing on an inhaled delivery approach for treating non-small cell lung cancer. The company has been granted an End of Phase 2 meeting with the FDA to discuss registration pathways for this treatment. H.C. Wainwright reiterated its Buy rating with a $240 price target, while Chardan Capital Markets adjusted its price target to $216, citing strategic shifts in the KB707 program. These developments reflect Krystal Biotech’s ongoing efforts to expand its treatment offerings and address investor concerns.
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