Krystal Biotech Rises 15.8% in a Month: Should You Buy Now or Wait?

Core Insights - Krystal Biotech (KRYS) shares have increased by 15.8% over the past month, outperforming the industry growth of 4% [1] - The company reported fourth-quarter 2024 results with earnings exceeding estimates, although sales fell short [1] - The stock's surge post-earnings is attributed to strong uptake of Vyjuvek and positive pipeline developments [1] Vyjuvek Performance - Vyjuvek, the first FDA-approved gene therapy for dystrophic epidermolysis bullosa (DEB), was launched in May 2023 [3] - Sales of Vyjuvek reached $290.5 million, a significant increase from$50.7 million in 2023 [4] - As of February 2025, Krystal secured over 510 reimbursement approvals for Vyjuvek in the U.S., with 97% of lives covered under commercial and Medicaid plans [5] Regulatory Approvals - The European Medicines Agency has recommended the approval of Vyjuvek for DEB treatment [6] - A new drug application for Vyjuvek has been filed in Japan, with a decision expected in the second half of 2025 [6] Pipeline Developments - Krystal is advancing a pipeline of genetic medicines across various fields, including respiratory and oncology [7] - KB407 is being evaluated for cystic fibrosis, with interim data expected in mid-2025 [8] - KB408 is showing promising results for alpha-1 antitrypsin deficiency, with further assessments planned [9] Financial Metrics - KRYS shares currently trade at a price/sales ratio of 10.58x forward sales, lower than its historical mean of 22.83x [13] - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen to $7.07 from$5.40 over the past month [14] Cash Position - As of December 31, 2024, Krystal holds a cash balance of $749.6 million, positioning the company well for pipeline development [17] Market Position - Krystal Biotech holds a Zacks Rank 2 (Buy), indicating strong market confidence [18]