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Krystal Biotech Inc (KRYS) Q1 2025 Earnings Call Highlights: Record Revenue Growth and ...

In This Article:

  • Net Revenue: $88.2 million for Q1 2025, up 95% from the prior year.

  • Gross Margin: Consistent at 94% in Q1 2025.

  • Cost of Goods Sold: $5 million, compared to $2.4 million in the prior year's first quarter.

  • Research and Development Expenses: $14.3 million, up from $11 million in the prior year.

  • General and Administrative Expenses: $32.7 million, compared to $26.1 million in the prior year.

  • Net Income: $35.7 million, representing $1.24 per basic and $1.20 per diluted share.

  • Total Cash and Investments: $765.3 million at the end of Q1 2025.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Krystal Biotech Inc (NASDAQ:KRYS) reported a significant increase in net product revenue for Vyjuvek, reaching $88.2 million for Q1 2025, marking a 95% growth from the prior year.

  • The company received full approval for Vyjuvek in Europe, with plans to launch in Germany and France in Q3 2025, potentially expanding its market significantly.

  • Krystal Biotech Inc (NASDAQ:KRYS) has a strong financial position with $765.3 million in total cash and investments, providing stability and flexibility for future growth.

  • The company is advancing its clinical pipeline with multiple upcoming readouts in 2025, including programs for CF, AATD, aesthetic skin conditions, and ocular lesions.

  • Vyjuvek has been established as a lifelong first-line therapy for wound management, with strong patient outcomes and high compliance rates, supporting long-term utilization and market penetration.

Negative Points

  • The company experienced a slowdown in the number of reimbursement approvals in Q1 2025, attributed to longer interaction times with healthcare providers and deeper community penetration.

  • Patient pausing patterns after intensive induction therapy are unpredictable, leading to potential fluctuations in quarterly revenue and compliance rates.

  • The launch of Vyjuvek in the US faced challenges with insurance changes and patient start forms, impacting the pace of new patient additions.

  • Krystal Biotech Inc (NASDAQ:KRYS) is increasing its sales force to address the slower pace of patient start forms, which may lead to higher operational costs.

  • The company is facing competition from a newly approved product, which, although not considered a direct competitor, may impact market dynamics and patient preferences.

Q & A Highlights

Q: How did insurance changes impact Vyjuvek sales in Q1, and can we expect a rebound in Q2? A: Insurance changes did have an impact, though not as significant as last year due to the J-code in place. We expect any lag from insurance changes to catch up in Q2.