Krystal Biotech shares tumble as Q1 results miss expectations

Published 06/05/2025, 14:34
Krystal Biotech shares tumble as Q1 results miss expectations

Investing.com -- Krystal Biotech , Inc. (NASDAQ:KRYS) saw its shares plunge 10.6% after the gene therapy company reported first-quarter earnings and revenue that fell short of analyst estimates.

The biotechnology firm posted adjusted earnings per share of $1.20 for the quarter ended March 31, 2025, missing the consensus forecast of $1.46. Revenue came in at $88.18 million, below Wall Street’s expectations of $99.12 million.

Despite the earnings miss, Krystal Biotech highlighted progress with its lead product VYJUVEK for treating dystrophic epidermolysis bullosa (DEB). The company recorded $88.2 million in VYJUVEK net product revenue for Q1, representing a 94.7% increase from $45.3 million in the same quarter last year.

"We were thrilled to receive VYJUVEK approval in Europe, and with the potential expansion to Japan later in the year, we continue to make tremendous progress on our goal of delivering profound long-term benefit to DEB patients around the world," said Krish S. Krishnan, Chairman and CEO of Krystal Biotech.

The company ended the quarter with a strong balance sheet, reporting $765.3 million in cash and investments as of March 31, 2025.

Krystal Biotech also announced its second clinical-stage ophthalmology program, KB801, for the treatment of neurotrophic keratitis. The company expects to dose the first patient in its Phase 1/2 study later this month.

For fiscal year 2025, Krystal Biotech provided guidance for non-GAAP research and development and selling, general and administrative expenses in the range of $150 million to $175 million.

The significant stock decline following the earnings release suggests investors were disappointed by the revenue miss and lower-than-expected earnings, despite the company’s pipeline progress and strong YoY growth for VYJUVEK.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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