Krystal Biotech (KRYS) has received a new Buy rating, initiated by Jefferies analyst, Roger Song.
Roger Song has given his Buy rating due to a combination of factors that highlight Krystal Biotech’s potential for significant growth. The company’s lead product, Vyjuvek, is the first and only approved treatment for dystrophic epidermolysis bullosa (DEB), and it has shown impressive clinical efficacy and safety. The commercial execution of Vyjuvek has been strong, with high reimbursement and compliance rates, and its market penetration is expected to reach 60% within two years of launch, which is comparable to some of the best launch records in history.
Krystal Biotech’s proprietary gene delivery technology and in-house manufacturing capabilities provide a competitive edge, reducing the threat of biosimilars. The company is also expanding its market reach globally, with potential revenue growth in Europe and Japan. Additionally, Krystal Biotech is developing an eye drop form of Vyjuvek for ocular DEB, which could command premium pricing and better compliance. Beyond Vyjuvek, the company’s pipeline includes promising programs in cystic fibrosis and alpha-1 antitrypsin deficiency, which could address large unmet needs and drive further upside potential.
In another report released on March 2, TD Cowen also initiated coverage with a Buy rating on the stock with a $208.00 price target.