Shares of Krystal Biotech KRYS have risen 16% over the past three months against the industry’s 9.4% decline, driven by robust commercial execution and continued revenue growth from its sole marketed drug, Vyjuvek. Investor sentiment has also been bolstered by positive regulatory progress across the company’s pipeline, strengthening confidence in its proprietary gene therapy platform and a strong financial position.
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Strong Growth of Vyjuvek
The FDA approved Vyjuvek, the first-ever revocable gene therapy, in 2023 for the treatment of patients aged six months or older with dystrophic epidermolysis bullosa (DEB), a rare and severe monogenic disease that affects the skin and mucosal tissues. The drug has also been approved by the FDA for the treatment of DEB patients from birth, with authorization for at-home administration by patients or their caregivers. Beyond the U.S. market, robust patient demand continues to drive steady uptake internationally, following the launches in Germany, France and Japan.
In the first quarter of 2026, Krystal generated $116.4 million in product revenues from Vyjuvek, up 32% year over year, driven by strong patient uptake.
Pipeline Assets Are on the Move
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 lung disease (AATD), KB803 for corneal abrasions in DEB patients and KB801 for neurotrophic keratitis (NK).
The company is initiating an open-label study to test repeat-dose KB407 in CF patients who cannot use or benefit from existing therapies. Patient enrollment is expected to be completed in the second quarter of 2026 and results are anticipated by the end of the year.
KB408 is being evaluated in an ongoing repeat-dose SERPENTINE-1 study for the treatment of patients with AATD. Interim results are expected in 2026.
In the ophthalmology space, KB803 is being evaluated in IOLITE, a phase III study for the treatment and prevention of corneal abrasions in DEB patients. Top-line data are anticipated in the fourth quarter of 2026.
Krystal is developing KB801 in EMERALD-1, a registrational study, for the treatment of patients with NK. Patient enrollment is ongoing, and top-line data from the study are expected in 2026.
In oncology, KB707 is being evaluated for advanced lung tumors, while its subsidiary, Jeune Aesthetics, is developing KB304 for wrinkle treatment.
The advancement of multiple clinical programs has strengthened confidence in Krystal's proprietary gene therapy platform and its potential to generate long-term growth beyond Vyjuvek.
Krystal Biotech, Inc. Price and Consensus
Krystal Biotech, Inc. price-consensus-chart | Krystal Biotech, Inc. Quote
KRYS’ Strong Financial Position
Krystal ended the first quarter of 2026 with approximately $1 billion in cash and investments. The cash-rich balance sheet reduces financing risk and supports continued investment in pipeline development and commercialization activities.
KRYS’ Zacks Rank & Stocks to Consider
Krystal Biotech currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Indivior Pharmaceuticals INDV, Liquidia Corporation LQDA and Immunocore IMCR, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for Indivior Pharmaceuticals remained unchanged at $4.05 for 2026 and $4.27 for 2027. INDV shares have lost 1.3% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.
Over the past 30 days, estimates for Liquidia’s 2026 earnings per share have increased to $2.97 from $1.50. Over the same period, EPS estimates for 2027 have risen to $4.81 from $2.91. LQDA shares have gained 61.5% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.
Over the past 30 days, loss per share estimates for Immunocore’s 2026 have improved from 88 cents to earnings per share of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR shares have lost 17.5% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 46.66%.
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This article originally published on Zacks Investment Research (zacks.com).