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KRYS Q2 Earnings and Sales Top Estimates, Stock Down on Q3 Outlook
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Key Takeaways
{\"0\":\"KRYS posted Q2 EPS of $1.29 and $96M in revenues, beating estimates and rising year over year.\",\"1\":\"Shares dropped 14% as Q3 revenues are expected to decline sequentially despite strong Q2 performance.\",\"2\":\"KRYS continues global Vyjuvek rollout and advances multiple gene therapy candidates in clinical trials.\"}
Krystal Biotech ((KRYS - Free Report) ) reported second-quarter 2025 earnings per share (EPS) of $1.29, which beat the Zacks Consensus Estimate of $1.08. The reported EPS was up from 93 cents (excluding litigation expenses) in the year-ago quarter.
Revenues of $96 million surged 36.6% year over year and beat the Zacks Consensus Estimate of $91 million. Revenues came in solely from the sales of Vyjuvek.
However, shares of the company lost 14% despite better-than-expected quarterly results, probably due to soft guidance for third-quarter revenues by management.
Shares of KRYS have lost 13.9% year to date against the industry’s 0.1% growth.
Image Source: Zacks Investment Research
KRYS’ Q2 Results in Detail
In 2023, the FDA approved Vyjuvek, the first-ever revocable gene therapy for treating patients aged six months or older with dystrophic epidermolysis bullosa (DEB). DEB is a rare and severe monogenic disease that affects the skin and mucosal tissues. It is caused by one or more mutations in a gene called COL7A1.
As of July, Krystal secured over 575 reimbursement approvals for Vyjuvek in the United States.
The gross margin in the reported quarter was 93%.
Research and development expenses amounted to $14.4 million, down 7.5% year over year, primarily due to the timing of various research and development activities.
Selling, general and administrative expenses totaled $35.2 million, up 27.2% from the year-ago level, primarily due to increased professional services fees, including marketing services, consulting and legal.
As of June 30, 2025, cash, cash equivalents, and investments totaled $820.8 million, up from $765.3 million as of March 31, 2025.
Krystal Biotech, Inc. Price, Consensus and EPS Surprise
The European Commission approved Vyjuvek for the treatment of wounds in patients with DEB who have mutations in the collagen type VII alpha 1 chain (COL7A1) gene, starting from birth.
KRYS is working to enable the first European launch in Germany in the third quarter and in France in the fourth quarter.
Vyjuvek was also approved in July in Japan for the treatment of patients with DEB from birth. KRYS targets to launch the drug in Japan before the end of 2025.
Krystal Biotech is evaluating KB407 for the treatment of cystic fibrosis (CF). The company has enrolled four patients in Cohort 3 of CORAL-1, a multi-center, dose escalation study evaluating KB407 in patients with CF, regardless of their underlying genotype. KRYS expects to provide an interim molecular data readout for Cohort 3 patients before year-end.
Another candidate, KB408, is being evaluated for the treatment of alpha-1 antitrypsin deficiency. KRYS confirmed SERPINA1 delivery and functional AAT expression with corresponding reductions in free neutrophil elastase in a third patient that underwent bronchoscopy after dosing with KB408 in Cohort 2 of SERPENTINE-1, an open-label dose escalation study in adult patients with AATD.
Krystal has now amended the SERPENTINE-1 protocol to investigate repeat dosing at the Cohort 2 dose level. Enrollment in the repeat dose cohort is ongoing. Enrollment in single-dose cohorts is now closed.
Vyjuvek is referred to as B-VEC outside the country. The company is also evaluating KB803 (B-VEC formulated as an eyedrop) for ocular complications of DEB. Enrollment in the phase III IOLITE study is ongoing.
KRYS dosed the first patient in EMERALD-1, a randomized, double-blind, placebo-controlled, multi-center phase I/II study evaluating KB801 in moderate-to-severe neurotrophic keratitis patients. Enrollment is ongoing in this study.
Enrollment is ongoing in KYANITE-1, a phase I/II open-label, multi-center, dose escalation and expansion study evaluating inhaled KB707, as monotherapy or in combination, in patients with locally advanced or metastatic solid tumors of the lung.
Enrollment is also ongoing in the phase I/II open-label, multi-center, dose escalation and expansion study, OPAL-1, evaluating intratumoral KB707 in patients with locally advanced or metastatic solid tumor malignancies.
KRYS’ wholly owned subsidiary, Jeune Aesthetics, is currently developing a décolleté-specific photo numeric scale for advanced clinical development of KB301.
Last month, Jeune Aesthetics announced positive safety and efficacy results from PEARL-2, a randomized, double-blind, placebo-controlled phase 1 study evaluating KB304 for the treatment of wrinkles of the décolleté. Meaningful aesthetic improvements across multiple attributes, including wrinkles and elasticity, were reported by the study investigator and subjects alike following KB304 treatment, with clear and statistically significant advantages over placebo.
Based on the broad aesthetic improvements observed with KB304 in PEARL-2, Jeune has selected KB304 for progression into the phase II study. Jeune Aesthetics recently completed development and validation of a décolleté-specific photonumeric scale to support the phase II evaluation of KB304. Jeune intends to submit the scale to the FDA and align on the phase II study protocol in the second half of the year.
Our Take on KRYS’ Q2 Performance
While Krystal’s performance in the second quarter was good, revenues in the third quarter are expected to decline due to summer pausing trends. Investors were disappointed by the guidance, and shares declined.
Nonetheless, revenues are expected to return to growth in the fourth quarter, driven by a growing patient funnel, restarts and sales expansion efforts.
KRYS’ Zacks Rank and Stocks to Consider
Krystal carries a Zacks Rank #3 (Hold) at present.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents. Loss per share estimates for 2026 have narrowed from $1.34 to $1.10 during the same period. IMCR stock has risen 10.3% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 76.18%.
In the past 60 days, estimates for CorMedix’s earnings per share have increased from 93 cents to 97 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.64 to $1.65. Year to date, shares of CRMD have rallied 52.7%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
BAYRY’s 2025 earnings per share estimate has increased from $1.23 to $1.30 for 2025 over the past 90 days and the same for 2026 has risen from $1.31 to $1.35 over the same timeframe. Year to date, shares of Bayer have surged 61.9%.
BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%.
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KRYS Q2 Earnings and Sales Top Estimates, Stock Down on Q3 Outlook
Key Takeaways
Krystal Biotech ((KRYS - Free Report) ) reported second-quarter 2025 earnings per share (EPS) of $1.29, which beat the Zacks Consensus Estimate of $1.08. The reported EPS was up from 93 cents (excluding litigation expenses) in the year-ago quarter.
Revenues of $96 million surged 36.6% year over year and beat the Zacks Consensus Estimate of $91 million. Revenues came in solely from the sales of Vyjuvek.
However, shares of the company lost 14% despite better-than-expected quarterly results, probably due to soft guidance for third-quarter revenues by management.
Shares of KRYS have lost 13.9% year to date against the industry’s 0.1% growth.
Image Source: Zacks Investment Research
KRYS’ Q2 Results in Detail
In 2023, the FDA approved Vyjuvek, the first-ever revocable gene therapy for treating patients aged six months or older with dystrophic epidermolysis bullosa (DEB). DEB is a rare and severe monogenic disease that affects the skin and mucosal tissues. It is caused by one or more mutations in a gene called COL7A1.
As of July, Krystal secured over 575 reimbursement approvals for Vyjuvek in the United States.
The gross margin in the reported quarter was 93%.
Research and development expenses amounted to $14.4 million, down 7.5% year over year, primarily due to the timing of various research and development activities.
Selling, general and administrative expenses totaled $35.2 million, up 27.2% from the year-ago level, primarily due to increased professional services fees, including marketing services, consulting and legal.
As of June 30, 2025, cash, cash equivalents, and investments totaled $820.8 million, up from $765.3 million as of March 31, 2025.
Krystal Biotech, Inc. Price, Consensus and EPS Surprise
Krystal Biotech, Inc. price-consensus-eps-surprise-chart | Krystal Biotech, Inc. Quote
KRYS Makes Good Pipeline Progress
The European Commission approved Vyjuvek for the treatment of wounds in patients with DEB who have mutations in the collagen type VII alpha 1 chain (COL7A1) gene, starting from birth.
KRYS is working to enable the first European launch in Germany in the third quarter and in France in the fourth quarter.
Vyjuvek was also approved in July in Japan for the treatment of patients with DEB from birth. KRYS targets to launch the drug in Japan before the end of 2025.
Krystal Biotech is evaluating KB407 for the treatment of cystic fibrosis (CF). The company has enrolled four patients in Cohort 3 of CORAL-1, a multi-center, dose escalation study evaluating KB407 in patients with CF, regardless of their underlying genotype. KRYS expects to provide an interim molecular data readout for Cohort 3 patients before year-end.
Another candidate, KB408, is being evaluated for the treatment of alpha-1 antitrypsin deficiency. KRYS confirmed SERPINA1 delivery and functional AAT expression with corresponding reductions in free neutrophil elastase in a third patient that underwent bronchoscopy after dosing with KB408 in Cohort 2 of SERPENTINE-1, an open-label dose escalation study in adult patients with AATD.
Krystal has now amended the SERPENTINE-1 protocol to investigate repeat dosing at the Cohort 2 dose level. Enrollment in the repeat dose cohort is ongoing. Enrollment in single-dose cohorts is now closed.
Vyjuvek is referred to as B-VEC outside the country. The company is also evaluating KB803 (B-VEC formulated as an eyedrop) for ocular complications of DEB. Enrollment in the phase III IOLITE study is ongoing.
KRYS dosed the first patient in EMERALD-1, a randomized, double-blind, placebo-controlled, multi-center phase I/II study evaluating KB801 in moderate-to-severe neurotrophic keratitis patients. Enrollment is ongoing in this study.
Enrollment is ongoing in KYANITE-1, a phase I/II open-label, multi-center, dose escalation and expansion study evaluating inhaled KB707, as monotherapy or in combination, in patients with locally advanced or metastatic solid tumors of the lung.
Enrollment is also ongoing in the phase I/II open-label, multi-center, dose escalation and expansion study, OPAL-1, evaluating intratumoral KB707 in patients with locally advanced or metastatic solid tumor malignancies.
KRYS’ wholly owned subsidiary, Jeune Aesthetics, is currently developing a décolleté-specific photo numeric scale for advanced clinical development of KB301.
Last month, Jeune Aesthetics announced positive safety and efficacy results from PEARL-2, a randomized, double-blind, placebo-controlled phase 1 study evaluating KB304 for the treatment of wrinkles of the décolleté. Meaningful aesthetic improvements across multiple attributes, including wrinkles and elasticity, were reported by the study investigator and subjects alike following KB304 treatment, with clear and statistically significant advantages over placebo.
Based on the broad aesthetic improvements observed with KB304 in PEARL-2, Jeune has selected KB304 for progression into the phase II study. Jeune Aesthetics recently completed development and validation of a décolleté-specific photonumeric scale to support the phase II evaluation of KB304. Jeune intends to submit the scale to the FDA and align on the phase II study protocol in the second half of the year.
Our Take on KRYS’ Q2 Performance
While Krystal’s performance in the second quarter was good, revenues in the third quarter are expected to decline due to summer pausing trends. Investors were disappointed by the guidance, and shares declined.
Nonetheless, revenues are expected to return to growth in the fourth quarter, driven by a growing patient funnel, restarts and sales expansion efforts.
KRYS’ Zacks Rank and Stocks to Consider
Krystal carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the pharma/biotech sector are Immunocore ((IMCR - Free Report) ), CorMedix ((CRMD - Free Report) ) and Bayer ((BAYRY - Free Report) ). While IMCR and CRMD sport a Zacks Rank #1 (Strong Buy) each, BAYRY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents. Loss per share estimates for 2026 have narrowed from $1.34 to $1.10 during the same period. IMCR stock has risen 10.3% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 76.18%.
In the past 60 days, estimates for CorMedix’s earnings per share have increased from 93 cents to 97 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.64 to $1.65. Year to date, shares of CRMD have rallied 52.7%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
BAYRY’s 2025 earnings per share estimate has increased from $1.23 to $1.30 for 2025 over the past 90 days and the same for 2026 has risen from $1.31 to $1.35 over the same timeframe. Year to date, shares of Bayer have surged 61.9%.
BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%.