On Monday, Stifel updated its outlook on Krystal Biotech (NASDAQ:KRYS), increasing the price target to $204 from the previous $178 while keeping a Buy rating for the stock. The adjustment comes as a result of new insights gained from physician interviews regarding the adoption of Vyjuvek, Krystal Biotech's treatment for dystrophic epidermolysis bullosa (DEB). Stifel's revised estimates now stand at $245 million for 2024 and $390 million for 2025, which align more closely with the consensus of $250 million and $420 million for the same years, respectively.
The firm conducted interviews with five physicians managing a total of 123 DEB patients, out of which 74 are being treated with Vyjuvek. The feedback from these interviews, combined with management commentary and certain assumptions, prompted Stifel to update their financial forecasts. The updates take into account potential market disruptions, such as the transition to a new billing code and changes with Change Healthcare (NASDAQ:CHNG), while also providing a more realistic expectation for Vyjuvek's performance through the rest of 2024.
Stifel's analysis suggests that the DEB treatment opportunity for Krystal Biotech remains significant, with the potential to achieve peak sales exceeding $1 billion across the US and European markets. In addition to the DEB treatment, Stifel has also factored in projected revenues from Vyjuvek in Japan and preliminary estimates for B-VEC, an ophthalmic solution, following the company's disclosed plans for these products.
InvestingPro Insights
As Krystal Biotech (NASDAQ:KRYS) continues to make waves with its DEB treatment, Vyjuvek, insights from InvestingPro provide additional context for investors considering the stock. According to InvestingPro data, Krystal Biotech has a market capitalization of $4.84 billion and trades at a high price-to-earnings ratio of 421.91, reflective of investor expectations for future growth. The company has demonstrated a strong gross profit margin of 93.9% over the last twelve months as of Q1 2023, highlighting the efficiency of its operations and its ability to retain a significant portion of revenue as profit.
InvestingPro Tips suggest that Krystal Biotech is expected to see net income growth this year, with analysts anticipating sales growth in the current year as well. Moreover, the company holds more cash than debt on its balance sheet, providing a solid financial foundation for ongoing and future projects. With a total of 17 additional InvestingPro Tips available, including insights on earnings revisions and profitability predictions, investors can delve deeper into Krystal Biotech's financial health and market position. For those looking to explore these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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