Krystal Biotech Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did KRYS Beat Earnings? Q1 2025 Results
Krystal Biotech delivered a disappointing first quarter, with shares tumbling more than 10% as both earnings and revenue fell short of Wall Street's expectations. The gene therapy company posted diluted EPS of $1.20, missing the $1.52 consensus by 21.05%, while revenue of $88.18 million trailed the $96.21 million estimate by 8.34%, despite nearly doubling year-over-year from $45.25 million in Q1 2024, a gain of 94.9%. The primary culprit behind the bottom-line miss was a $7.86 million income tax expense recorded for the first time, reflecting Krystal's transition to sustained profitability as VYJUVEK's commercial momentum matures. The gene therapy's 94% gross margin highlighted the efficiency of its manufacturing, and cumulative revenue since launch has now reached $429.40 million. Looking ahead, the company expects its first European VYJUVEK launch in Germany by mid-2025 and a Japanese regulatory decision in the second half of the year, while maintaining full-year non-GAAP combined R&D and SG&A guidance of $150 million to $175 million.
- Continued U.S. commercial ramp of VYJUVEK with 94% gross margin
- Over 540 reimbursement approvals in the U.S. with 97% positive access determinations for commercial and Medicaid lives
- Strong patient compliance at 83% with weekly treatment
- Cumulative VYJUVEK revenue of $429.4 million since Q3 2023 launch
“We were thrilled to receive VYJUVEK approval in Europe, and with the potential expansion to Japan later in the year, we continue to make tremendous progress on our goal of delivering profound long-term benefit to DEB patients around the world. With today's announcement of our second clinical-stage ophthalmology program, the near-term initiation of our registrational study in DEB patients with eye lesions, and upcoming molecular readouts for our rare respiratory disease product candidates, KB407 and KB408, we are pushing forward a broad and expanded pipeline which we expect will ultimately demonstrate the power of HSV-1 based gene delivery in the lung, eye, and skin, and - most importantly - deliver meaningful benefit to patients.”
Krystal Biotech CEO, on the earnings call
Forward Guidance & Outlook
Krystal Biotech expects the first European launch of VYJUVEK in Germany in mid-2025 and anticipates a decision from Japan's PMDA on its New Drug Application in H2 2025. The company guided FY 2025 non-GAAP combined R&D and SG&A expense at $150-$175 million (excluding stock-based compensation). Multiple clinical readouts are expected in 2025: interim molecular data from KB407 Cohort 3 (CF) in mid-2025, additional KB408 Cohort 2 and 3 molecular results later in 2025, KB304 top-line results in H2 2025, and an ASCO presentation on KB707 monotherapy data. The company plans to dose first patients in the KB803 Phase 3 IOLITE registrational study and KB801 EMERALD-1 Phase 1/2 study this month. The Phase 2 portion of KB105 JADE-1 trial is planned for 2026.
KRYS YoY Financials
KRYS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.