Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Oct, 25 | KRYS | Buy | USD 188.76 | USD 198.0 | USD 210.0 | 25 days | Closed |
11.71%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.
Revenue Growth: Product revenue increased 36.5% year-over-year, rising from USD 70.3 million in Q2 FY2024 to USD 96.0 million in Q2 FY2025, driven by sustained U.S. demand and expanding access to VYJUVEK
Profitability Surge: Net income grew 145.5% year-over-year, from USD 15.6 million in Q2 FY2024 to USD 38.3 million in Q2 FY2025, supported by a 93% gross margin and strong sales leverage
Higher Stock-Based Compensation: Total stock-based compensation across R&D and SG&A rose from USD 13.2 million in Q2 FY2024 to USD 14.1 million in Q2 FY2025, an increase of 6.8%, reflecting expanded headcount and incentive programs to support global growth
Rising Operating Expenses: Selling, General, and Administrative (SG&A) expenses increased 27.5%, from USD 27.6 million in Q2 FY2024 to USD 35.2 million in Q2 FY2025, reflecting higher commercialization costs associated with new market launches
Krystal Biotech’s investment risk primarily lies in its high pipeline concentration around VYJUVEK, where slower-than-expected international launches, regulatory delays, or clinical setbacks in new programs could materially impact near-term revenue growth and investor confidence
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 188.76 | 165.0 | 198.0 | 210.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Global Expansion and Strategic Outlook: Krystal Biotech, Inc. (NASDAQ: KRYS) reported strong financial and operational performance for the quarter ended June 30, 2025, underscored by meaningful global progress across its key programs. With the recent approvals of VYJUVEK in Europe and Japan, the Company is poised to significantly expand its commercial footprint beyond the United States. Chairman and Chief Executive Officer, Krish S. Krishnan, emphasized that the approval momentum marks the beginning of Krystal’s global expansion strategy, while upcoming clinical readouts in the lung and eye therapeutic areas could further validate the versatility of the Company’s genetic medicine platform.
VYJUVEK: Continued Commercial Strength and International Growth: VYJUVEK® (beremagene geperpavec-svdt) continued to drive robust revenue growth, with the product generating USD 96.0 million in net product sales during Q2 FY2025, supported by an exceptional 93% gross margin. The Company achieved more than 575 reimbursement approvals in the U.S., ensuring strong nationwide patient access and 82% weekly treatment compliance. Following approvals from Japan’s Ministry of Health, Labour and Welfare and the European Commission, Krystal plans to launch VYJUVEK in Japan by year-end 2025 and in Germany and France during the third and fourth quarters, respectively. These milestones mark significant progress toward establishing a durable global revenue base.
Advancements in Respiratory Programs: In the respiratory segment, Krystal advanced its cystic fibrosis program, KB407, enrolling four patients in Cohort 3 of the CORAL-1 study, with interim molecular data expected by year-end. For KB408, targeting alpha-1 antitrypsin deficiency, the Company confirmed gene delivery and functional protein expression in patients from Cohort 2, alongside reductions in neutrophil elastase activity. Encouraged by these findings, Krystal initiated repeat dosing in the newly defined Cohort 2B and continues active enrollment, marking a key step toward validating its pulmonary delivery platform.
Ophthalmology Portfolio Expansion: Krystal expanded its ophthalmology portfolio with the initiation of multiple clinical programs. The Company began dosing patients in the Phase 3 IOLITE study evaluating KB803 for corneal abrasions in DEB patients, and in EMERALD-1, a Phase 2 study assessing KB801 for neurotrophic keratitis. Preclinical data presented earlier in 2025 demonstrated sustained nerve growth factor production and successful transduction in corneal cells, reinforcing the potential of Krystal’s ocular gene therapy approach. Enrollment across these studies remains ongoing, aligning with the Company’s goal to diversify its therapeutic applications beyond dermatology.
Oncology and Aesthetic Pipeline Progress: Krystal’s oncology candidate, KB707, showed encouraging results in the Phase 1/2 KYANITE-1 study, achieving an improved objective response rate of 36% in heavily pre-treated non-small cell lung cancer patients, with no Grade 4 or 5 adverse events reported. Concurrently, Jeune Aesthetics, Krystal’s subsidiary, announced positive Phase 1 results for KB304 in treating décolleté wrinkles, demonstrating statistically significant improvements over placebo. Based on these outcomes, Jeune plans to progress KB304 into Phase 2 trials in 1H 2026 while evaluating additional opportunities for KB301 across aesthetic indications.
Financial Performance: For Q2 FY2025, Krystal reported total product revenue of USD 96.0 million, representing a 36.5% year-over-year increase from USD 70.3 million in Q2 FY2024. Net income more than doubled to USD 38.3 million (USD 1.33 per basic share) compared to USD 15.6 million (USD 0.54 per basic share) in the prior-year quarter. The Company ended the quarter with a strong cash and investment balance of USD 820.8 million, providing ample liquidity to fund ongoing clinical and commercial initiatives. Operating expenses rose modestly, with R&D expenses at USD 14.4 million versus USD 15.6 million in the prior year, while SG&A increased to USD 35.2 million from USD 27.6 million, reflecting higher commercial activity.
Guidance and Outlook: For full-year 2025, Krystal reaffirmed its guidance for combined non-GAAP R&D and SG&A expenses in the range of USD 150.0 million to USD 175.0 million, excluding stock-based compensation. With its expanding global presence, advancing multi-therapeutic pipeline, and sustained profitability, Krystal is positioned for continued growth through 2025 and beyond.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Krystal Biotech, Inc. (NASDAQ: KRYS) at the closing market price of 188.76, as on Oct 09, 2025
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| KRYS Krystal Biotech Inc |
-4.1 1.45% | 278.17 | 72.94 | 181.82 | 47.33 | 5.82 | 42.94 | 68.28 |
| NVO Novo Nordisk A/S |
-8.435 14.31% | 50.49 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
-8.56 14.49% | 50.50 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-6.635 1.41% | 465.38 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
4.00 0.53% | 759.02 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 10, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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