Shares of Krystal BiotechKRYS have risen 13.4% over the past month compared with the industry's 8.2% growth, fueled by improving investor confidence in the company's commercial performance and its expanding pipeline of genetic medicines.
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Vyjuvek Remains the Key Growth Driver
The biggest catalyst for Krystal is Vyjuvek, the company's approved gene therapy for the treatment of patients with dystrophic epidermolysis bullosa ("DEB") since birth. In the second quarter of 2026, Vyjuvek generated $119.2 million in global net product revenues, up 24% year over year, while gross margin reached an impressive 95%. Cumulative revenues since launch reached $965.9 million.
The commercial trajectory is particularly encouraging because Vyjuvek continues to gain adoption in the United States. Krystal had secured more than 730 reimbursement approvals and expanded its prescriber base to more than 640 physicians by the end of the second quarter.
Internationally, robust patient demand continues to drive steady uptake following the launches in Germany, France, Japan and the United Kingdom, with more than 180 patients prescribed the therapy across these markets. The company is advancing pricing and reimbursement negotiations across Europe, targeting commercial launches in Italy and Spain by the end of 2026.
Continued Progress in KRYS' Pipeline Assets
Beyond Vyjuvek, investors are increasingly focused on Krystal's pipeline, which could transform the company from a single-product commercial biotech into a multi-product genetic medicines company.
Krystal is advancing a diversified pipeline of genetic medicines across respiratory, ophthalmology, oncology, and aesthetics indications. Key programs include KB407 for cystic fibrosis ("CF"), KB408 for alpha-1 antitrypsin deficiency ("AATD") lung disease, KB803 for corneal abrasions in DEB patients and KB801 for neurotrophic keratitis ("NK").
Krystal initiated an open-label study to test repeat-dose KB407 in CF patients who cannot use or benefit from existing therapies. Patient enrollment is ongoing and interim study data are anticipated by the end of the year.
Enrollment is ongoing in repeat-dose Cohort 2B of the SERPENTINE-1 study, which is evaluating KB408 for the treatment of AATD lung disease, with interim results expected in 2027.
KB803 is being developed for the treatment and prevention of corneal abrasions in patients with DEB. The registrational IOLITE study has been fully enrolled, with top-line results expected in the fourth quarter of 2026.
The registrational study EMERALD-1 is evaluating the safety and tolerability of topical ocular administration of KB801 in patients with NK. Patient enrollment is ongoing.
Krystal is evaluating inhaled KB707 as monotherapy and in combination with other therapies in patients with advanced NSCLC. The company is evaluating inhaled KB707 in combination with chemotherapy in the KYANITE-1 study and expects to provide interim efficacy data and potential registrational development plans in the first half of 2027.
In the aesthetics space, the company's wholly owned subsidiary, Jeune Aesthetics, is developing KB304 for the treatment of wrinkles of the décolleté. The company expects to initiate a mid-stage study in 2027.
Strong Balance Sheet Reduces Pipeline Risk
Krystal has considerable financial flexibility. The company ended the second quarter of 2026 with approximately $1.1 billion in cash, cash equivalents and investments. This reduces the need for near-term dilutive financing and allows Krystal to continue investing in its pipeline while expanding Vyjuvek globally.
Krystal Biotech, Inc. Price and Consensus
Krystal Biotech, Inc. price-consensus-chart | Krystal Biotech, Inc. Quote
KRYS' Zacks Rank & Stocks to Consider
Krystal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are PrecigenPGEN, currently sporting a Zacks Rank #1 (Strong Buy), and AC ImmuneACIU and Aldeyra TherapeuticsALDX carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Precigen's 2026 bottom line have improved from a loss of 2 cents to earnings per share of 25 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 86 cents. PGEN shares have increased 68% year to date.
Precigen's earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.
Over the past 30 days, estimates for AC Immune's 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents. ACIU shares have lost 9.6% year to date.
AC Immune's earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.
Over the past 30 days, loss per share estimates for Aldeyra Therapeutics have narrowed from 43 cents to 39 cents for 2026. Over the same period, estimates for 2027 loss per share have narrowed from 22 cents to 16 cents. ALDX shares have plunged 71.1% year to date.
Aldeyra Therapeutics' earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 29.25%.
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This article originally published on Zacks Investment Research (zacks.com).
