Krystal Biotech (KRYS) is seeing divergent sentiment among Wall Street analysts, with a mix of cautious optimism and concern driven by recent clinical data and rising operational costs. The stock has fluctuated around $12.80 amid a revised 12-month price target range from $10.00 to $16.50.
- KRYS reported a Q4 2025 loss of $28.4 million, up from $19.1 million in the prior year
- Cash and equivalents stood at $112.6 million as of December 31, 2025
- Analyst price targets range from $10.00 to $16.50, with 3 of 7 upgrading to 'Buy'
- Phase 3 trial data expected in Q2 2026, critical for regulatory and commercial prospects
- Peak sales potential for KB-004 estimated at $1.2 billion if approved
- Institutional ownership increased by 6.3% in Q4 2025
Krystal Biotech (KRYS) is navigating a pivotal phase as analysts reassess its long-term viability following updates from its lead candidate, KB-004, for the treatment of recessive dystrophic epidermolysis bullosa (RDEB). Recent Phase 2 trial results demonstrated a 67% reduction in wound area over 12 weeks, a key milestone that has prompted three of seven analysts to upgrade their ratings to 'Buy' from 'Hold'. The company reported a quarterly loss of $28.4 million in Q4 2025, widening from $19.1 million in the same period the prior year. This increase in operating expenses—driven by expanded clinical trial activities and manufacturing scale-up—has raised concerns about cash runway. Krystal Biotech ended the quarter with $112.6 million in cash and equivalents, projecting current resources will sustain operations through late 2027, assuming no additional capital raises. Analyst price targets for KRYS now range from a low of $10.00 to a high of $16.50, reflecting uncertainty around regulatory timelines and potential market competition. Three firms have initiated coverage with 'Neutral' ratings, citing limited data from ongoing Phase 3 trials and the risk of delayed FDA approval. Despite this, the stock has gained 14% year-to-date as institutional investors increased positions by 6.3% in Q4. Investors are closely watching upcoming data readouts from the Phase 3 trial expected in Q2 2026. A positive outcome could accelerate commercialization and potentially unlock a $1.2 billion peak sales opportunity, according to internal projections. Conversely, any setbacks may trigger further downward pressure on valuation, especially if the company requires a secondary equity offering to extend its cash position.