Krystal Biotech Reports 95% Revenue Growth and $35.7 Million Net Income in Latest Quarter

Krystal Biotech, Inc. reported significant financial growth in its latest quarterly results, with product revenue reaching $88.2 million for the three months ended March 31, 2025, compared to $45.3 million during the same period in 2024, marking a 95% increase. The company achieved a net income of $35.7 million, a substantial rise from a mere $932,000 in the previous year. This shift to profitability is attributed to the successful commercialization of VYJUVEK, its FDA and EMA-approved gene therapy product for dystrophic epidermolysis bullosa (DEB). The gross margin for the quarter was reported at 94%, slightly down from 95% in the prior year, reflecting increased costs associated with the rise in product sales.

In terms of operational changes, Krystal Biotech has expanded its employee base and infrastructure to support its growing commercialization efforts. The company reported an increase in research and development expenses, which rose to $14.3 million from $11 million year-over-year, driven by higher payroll costs and clinical development expenses. The total operating expenses for the quarter were $52 million, a slight increase from $51.9 million in the previous year. The company also noted a decrease in current liabilities, which fell to $79.5 million from $102 million, indicating improved financial health.

Strategically, Krystal Biotech is preparing for the commercial launch of VYJUVEK in key European markets, with plans to initiate sales in Germany by mid-2025. The company has also filed a New Drug Application in Japan, which is currently under priority review. As of March 31, 2025, Krystal Biotech had approximately $616.8 million in cash, cash equivalents, and short-term investments, which management believes will be sufficient to fund operations for at least the next 12 months.

The company has also made strides in its product pipeline, with several candidates in various stages of clinical trials. Notably, KB407 and KB408 are being developed for cystic fibrosis and alpha-1 antitrypsin deficiency, respectively. The company is actively expanding its research and development capabilities, which includes the establishment of a new state-of-the-art manufacturing facility. However, Krystal Biotech acknowledges the inherent risks associated with biotechnology development, including regulatory hurdles and competition from other firms.

Looking ahead, Krystal Biotech remains optimistic about its growth trajectory, driven by the successful commercialization of VYJUVEK and the advancement of its product pipeline. The company is focused on maintaining its financial health while navigating the complexities of the biotechnology landscape, including potential changes in regulatory environments and market conditions.