Krystal Biotech surges after beating Q4 estimates
Gene therapy company reports 34% full-year revenue growth with strong cash position and key FDA designations
Krystal Biotech shares rose more than 2% on Tuesday after the gene therapy company reported fourth-quarter earnings that beat analyst expectations, driven by strong performance of its flagship treatment for a rare skin disorder.
The Pittsburgh-based company reported adjusted earnings per share of $1.70 for the fourth quarter of 2025, exceeding the $1.62 consensus estimate, according to company figures released Tuesday morning. Revenue of $107.1 million from its VYJUVEK treatment for dystrophic epidermolysis bullosa topped analyst projections of $93.4 million.
Full-year product revenue jumped 34% to $389.1 million, with the company maintaining 94% gross margins throughout the year. Since its U.S. launch, VYJUVEK has generated $730.3 million in cumulative revenue, Krystal Biotech said.
The strong results come amid significant regulatory progress for Krystal's pipeline. In February, the U.S. Food and Drug Administration granted Regenerative Medicine Advanced Therapy (RMAT) designation to KB707, an inhaled immunotherapy for advanced non-small cell lung cancer. The designation, which offers accelerated development pathways and more frequent FDA interactions, positions KB707 as a key asset in the company's oncology program.
Separately, the FDA awarded Fast Track designation to KB111 in January for the treatment of Hailey-Hailey disease, a rare genetic skin disorder. Krystal said it plans to initiate a registrational study for KB111 in the second half of 2026.
"The cystic fibrosis readout reinforces the versatility of our platform in high-turnover epithelial tissues," said Krish Krishnan, chairman and chief executive officer of Krystal Biotech. "We are in the early stages of unlocking the transformational potential of our redosable HSV-1-based gene delivery platform."
Krystal ended 2025 with $955.9 million in cash, cash equivalents, and investments, providing substantial runway for its pipeline development. The company guided for non-GAAP research and development and selling, general and administrative expenses of $175 million to $195 million for fiscal year 2026.
The stock, which closed Tuesday at $276.45, remains near its 52-week high of $295.98 set earlier this year. The shares have more than doubled from their 52-week low of $122.80, reflecting growing investor confidence in Krystal's platform technology and commercial execution.
All 11 analysts covering Krystal Biotech rate the stock a buy, with an average price target of $284.44, suggesting approximately 3% upside from current levels. The consensus rating represents a notable show of support for a clinical-stage biotechnology company.
VYJUVEK's commercial expansion continues internationally, with Krystal securing over 660 reimbursement approvals in the U.S. and reporting strong uptake in Germany, France, and Japan. The treatment received the Prix Galien France and Prix Galien Italia awards in 2025, recognizing innovation in medicine.
The company's respiratory pipeline also advanced, with interim data from the CORAL-1 Phase 1 study for KB407 in cystic fibrosis confirming lung delivery and expression of the CFTR protein. Krystal said discussions with the FDA for the CORAL-3 repeat dosing study are ongoing, with enrollment expected in the first half of 2026.
Krystal has set an ambitious goal of launching multiple products and treating over 10,000 rare disease patients by the end of 2030. The company's redosable gene therapy platform, which uses a modified herpes simplex virus to deliver genetic material, underpins treatments across respiratory, dermatology, ophthalmology, and oncology indications.