Krystal Q2 Earnings & Sales Beat Estimates, Pipeline in Focus

The FDA approved Krystal’s lead drug, 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 been approved by the FDA for the treatment of DEB patients from birth, with authorization for at-home administration by patients or their caregivers.

The company secured more than 730 reimbursement approvals for Vyjuvek in the United States, supporting nationwide access. Internationally, robust patient demand continues to drive steady uptake following the launches in Germany, France and Japan, with more than 180 patients prescribed the therapy across these markets.

In May, Vyjuvek got approval in the United Kingdom for the treatment of DEB patients since birth.

Despite earnings beat, shares of KRYS were down nearly 8.4% on Monday.

Year to date, shares of KRYS have risen 26.8% compared with the industry’s 2.8% growth.

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KRYS’ Q2 Earnings in Detail

The top line comprises product revenues from Krystal’s only marketed drug, Vyjuvek.

Krystal generated $119.2 million in product revenues from Vyjuvek, up from $96 million in the year-ago quarter, driven by strong patient uptake.

The gross margin in the reported quarter was 95%.

Research and development (R&D) expenses were approximately $14.5 million, including stock-based compensation, roughly consistent with the prior-year quarter. Selling, general and administrative (SG&A) expenses totaled $39.9 million, including stock-based compensation, up 13.6% from the year-ago level. This increase was primarily due to increased headcount and marketing costs to support the global launches of Vyjuvek.

As of June 30, 2026, cash, cash equivalents and investments totaled $1.1 billion compared with approximately $1 billion as of March 31, 2026.

KRYS’ 2026 Guidance

Krystal reiterated its non-GAAP combined R&D and SG&A expense guidance of $175 million to $195 million for full-year 2026.

KRYS' Recent Pipeline Updates

For Vyjuvek, the company is advancing pricing and reimbursement negotiations across Europe, targeting commercial launches in Italy and Spain by the end of 2026.

Krystal is also advancing a robust clinical pipeline of investigational genetic medicines in the fields of respiratory, oncology, dermatology, ophthalmology and aesthetics.

On the respiratory front, the company has two candidates in its pipeline, KB407 and KB408.

The company is evaluating KB407 for the treatment of cystic fibrosis (CF). Based on its discussions with the FDA, Krystal has initiated an open-label study to test repeat-dose KB407 in CF patients who cannot use or benefit from existing therapies. Patient enrollment is ongoing, and initial study data are anticipated by the end of the year.

Concurrently, Krystal is collaborating with the FDA and the Cystic Fibrosis Foundation on an innovative registrational study design that may use real-world patient data to support evaluation of KB407’s treatment effect. It plans to finalize and share the study design following FDA alignment in the fourth quarter of 2026, with the registrational study expected to begin in 2027.

KB408 is being evaluated for the treatment of alpha-1 antitrypsin deficiency (AATD) lung disease. Enrollment is ongoing in repeat-dose Cohort 2B of the SERPENTINE-1 study, with interim results expected in 2027.

In the ophthalmology space, another candidate, KB803, is being evaluated in IOLITE, a phase III randomized, placebo-controlled crossover study for the treatment and prevention of corneal abrasions in DEB patients. Patient enrollment has been completed, with top-line data anticipated in the fourth quarter of 2026.

Krystal is also evaluating KB801 for the treatment of patients with neurotrophic keratitis (NK). A registrational, randomized, double-masked, placebo-controlled study, EMERALD-1, is evaluating the safety and tolerability of topical ocular administration of KB801 in patients with NK. Patient enrollment is ongoing.

On the oncology front, Krystal has a promising candidate, KB707, which is being developed for the treatment of non-small cell lung cancer (NSCLC).

Krystal is evaluating inhaled KB707 as monotherapy and in combination with other therapies in patients with advanced NSCLC. In May, the company announced interim data from a dose-expansion cohort of its phase I/II KYANITE-1 study, which showed that KB707 combined with Keytruda (pembrolizumab) was well tolerated and demonstrated encouraging anti-tumor activity, while earlier monotherapy data also showed promising efficacy. The company is on track to complete patient enrollment in the final dose-expansion cohort of the KYANITE-1 study, evaluating KB707 in combination with chemotherapy by the end of 2026. Updated interim clinical data, along with potential registrational study plans, are expected in the first half of 2027.

In the aesthetics space, the company’s wholly owned subsidiary, Jeune Aesthetics, is currently developing KB304 for the treatment of wrinkles of the décolleté. The company expects to initiate a mid-stage study in 2027.

KRYS’ Zacks Rank & Stocks to Consider

Krystal currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy) and Neurocrine Biosciences NBIX, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 90 days, earnings per share estimates for Harmony Biosciences have decreased from $3.34 to $3.30 for 2026. Over the same period, estimates for earnings per share increased from $3.79 to $3.87 for 2027. HRMY shares have lost 4.9% year to date.

Harmony Biosciences missed on earnings in each of the trailing four quarters, delivering an average negative surprise of 25.16%.

Over the past 90 days, estimates for Liquidia’s 2026 earnings per share have increased to $3.02 from $1.50. Over the same period, EPS estimates for 2027 have risen to $5.31 from $2.91. LQDA shares have gained 143.1% 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 90 days, estimates for Neurocrine Biosciences’ 2026 earnings per share have risen from $8.04 to $9.09. Over the same period, EPS estimates for 2027 have increased from $9.54 to $10.81. NBIX shares have gained 17.2% year to date.

Neurocrine Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 13.57%.

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