Krystal Biotech Surges on Strong VYJUVEK Sales and Ambitious Pipeline
Shares jumped after the company beat Q4 revenue estimates for its rare disease drug and outlined a plan to have four marketed medicines by 2030 at the J.P. Morgan Healthcare Conference.
Shares of Krystal Biotech (NASDAQ: KRYS) climbed more than 5% on Tuesday, touching prices near a 52-week high, after the company announced preliminary fourth-quarter sales for its flagship drug that significantly surpassed Wall Street expectations and detailed a robust long-term clinical strategy.
In a business update ahead of its presentation at the 44th Annual J.P. Morgan Healthcare Conference, Krystal reported preliminary Q4 net revenue for VYJUVEK of between $106 million and $107 million. The figure comfortably beat the analyst consensus estimate of $93.4 million by approximately 13.5%, signaling strong momentum for the novel gene therapy. The stock rose to $261.41 in afternoon trading, pushing its market capitalization to over $7.5 billion.
The strong performance caps a successful first full year on the market for VYJUVEK, a topical gene therapy for treating dystrophic epidermolysis bullosa (DEB), a rare and severe genetic skin disorder. According to the a company press release, the impressive fourth-quarter results are expected to bring full-year 2025 revenue to between $388 million and $389 million.
"The strong uptake for VYJUVEK validates the significant unmet need in the DEB community and demonstrates our commercial execution," the company stated, highlighting the drug's successful launch and market penetration. VYJUVEK is the first-ever redosable gene therapy and the first and only medicine approved by the FDA to treat DEB for both recessive and dominant forms.
The positive sales figures were paired with an ambitious vision for the future. Management outlined a strategic goal to transform Krystal into a global rare disease leader with at least four marketed medicines by the end of 2030, aiming to treat over 10,000 patients worldwide.
Investors were also given a clear view of the near-term catalyst pipeline. The company's 2026 objectives include delivering top-line data from two pivotal registrational studies. Notably, Krystal is increasing the enrollment target for its study of KB801 in Netherton Syndrome, a rare skin condition, from 27 to 60 patients, with data now expected before the end of 2026. This expansion suggests confidence in the drug's profile and a commitment to generating a robust data set for regulators.
Further updates for its cystic fibrosis candidate, KB408, and its aesthetic medicine asset, KB707, are also expected before the end of the year, promising a catalyst-rich 2026 for the company. With an investor base that is overwhelmingly institutional (over 99%), the clear strategic roadmap and strong execution are likely to be well-received.
The consistent positive news flow has been reflected in Wall Street sentiment, where a consensus of 11 analysts covering the stock includes ten 'Buy' ratings and one 'Hold', with an average price target suggesting further upside. Krystal's success with VYJUVEK serves as a powerful proof-of-concept for its underlying gene therapy platform, de-risking its broader pipeline and positioning it as a significant new player in the rare disease space.