Krystal Biotech Analyst Says Stock Weakness 'Overblown'

Krystal Biotech Inc. (NASDAQ:KRYS) stock is trading lower on Monday after the company provided a third-quarter update.

The biotech company reported earnings of $2.05 per share, beating the consensus of $1.77. Sales reached $127.341 million, beating the consensus of $126.079 million.

• Krystal Biotech stock is showing notable weakness. Why is KRYS stock dropping?

Vyjuvek (for dystrophic epidermolysis bullosa) revenue was $127.3 million, up 30% year over year.

Krystal Biotech also announced a buyback program of up to $400 million over the next two years.

In an earnings call, Suma Krishnan, founder and president, said that some clinical results are going to take a bit longer than initially expected.

KB803 for Corneal Abrasions in Dystrophic Epidermolysis Bullosa (DEB)

The company enrolled three additional patients, including a one-year-old child, in its registrational IOLITE study. The enrollment replaces two patients who withdrew for reasons unrelated to safety and supports KB803’s potential use in treating corneal abrasions in DEB patients from birth.

The company now expects the last patient visit in February 2027, with topline results shortly thereafter, delaying the anticipated readout from the fourth quarter of 2026.

KB801 for Neurotrophic Keratitis (NK)

Enrollment is ongoing in the EMERALD-1 study evaluating KB801 for NK, with 22 sites activated.

However, recruitment has been slower than expected due to the study’s narrow eligibility criteria and challenges in enrolling patients in a placebo-controlled trial for an indication with an approved treatment.

The company now expects to complete enrollment of approximately 60 patients and report topline results in 2027, versus its earlier expectation of completing enrollment by year-end.

William Blair on Monday wrote, “While we understand this might lead to investor concern, we see this reaction as overblown because the delays were driven by the company’s thoughtful trial designs and stringent eligibility criteria to ensure successful trial outcomes.”

Analyst Lachlan Hanbury-Brown sees the stock weakness as a potential buying opportunity, citing value inflection within the next 12 months.

KRYS Price Action: Krystal Biotech shares were down 14.20% at $285.10 at the time of publication on Monday, according to Benzinga Pro data.

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