Screener Companies About
Nasdaq:KRYS
Healthcare Biotechnology

Krystal Biotech, Inc.

A clinical-stage biotech firm specializing in novel therapies for rare metabolic diseases with a recent surge in revenue and profitability driven by product launches.

■ Key Metrics

Revenue
$389.1M
Net Income
$204.8M
Gross Profit
$389.1M
Operating Cash Flow
$200.9M
Total Assets
$1.33B
Shareholders' Equity
$1.22B
Cash & Equiv
$496.3M

⚖ Investment Thesis

Bull Case

Investors should consider Krystal Biotech given its exceptional recent profitability and massive year-over-year revenue expansion which suggests a successful product launch cycle. The company's strong cash balance of $496.3M provides a significant safety margin against future R&D expenditures and potential clinical setbacks. Operating with minimal debt and generating substantial free cash flow, the stock offers an attractive risk-reward profile for growth-oriented portfolios in the biotech sector.

Bear Case

Despite recent gains, the company remains dependent on specific product approvals and partnership outcomes which introduce high volatility to future earnings projections. The total liability structure, while manageable at $114.2M, requires careful monitoring as the company scales operations and takes on more debt or lease obligations. Investors should be cautious about the potential for clinical failures in later-stage trials that could quickly deplete cash reserves and halt growth momentum.

◉ About Krystal Biotech, Inc.

Krystal Biotech, Inc. is a clinical-stage biotechnology company focused on developing novel therapies for rare metabolic diseases, primarily within the United States. The company leverages its proprietary technology platform to create transformative treatments that address unmet medical needs in orphan drug markets. Revenue growth has been driven by strategic partnerships and the commercialization of key assets following regulatory approvals.

⚙ Analysis

Management Discussion

Management has successfully executed a pivot toward commercialization, evidenced by a dramatic revenue jump from $50.7M in 2023 to $389.1M in the latest fiscal year. Net income surged from a loss of $140M in 2022 to $204.8M recently, indicating strong operational leverage and effective cost management as fixed R&D costs are offset by sales. The company maintains a healthy cash position of nearly $500M, providing ample runway to fund remaining clinical trials without immediate need for external financing.

Industry Overview

The rare disease biotechnology sector is characterized by high failure rates but offers substantial rewards for successful asset development due to lack of competition and government incentives like orphan drug exclusivity. Companies in this space often rely heavily on strategic partnerships to commercialize products, creating a dynamic landscape of collaboration and acquisition activity. Regulatory environments are becoming increasingly stringent regarding clinical trial design and post-market surveillance, requiring firms like Krystal Biotech to maintain high standards of scientific rigor.

☰ Financial Statements

Income Statement
Balance Sheet
Cash Flow
Metric2022202320242025
Revenue$0$50.7M$290.5M$389.1M
Cost of Revenue$0$0$0$0
Gross Profit$0$50.7M$290.5M$389.1M
Operating Expenses$145.2M$160.4M$224.8M$227.8M
Operating Income$-145.2M$-109.7M$65.7M$161.3M
R&D$42.5M$46.4M$53.6M$58.0M
G&A$77.7M$98.4M$113.7M$146.7M
Stock-Based Comp$33.2M$39.9M$49.1M$54.5M
D&A$4.1M———
Depreciation$2.6M$5.0M$6.0M$5.7M
Other OpEx$25.0M$15.6M$57.6M$23.0M
Non-Operating Income$0$122.6M$29.7M$28.2M
Interest Expense$0$0——
Pre-Tax Income$-145.2M$12.9M$95.4M$189.5M
Income Tax$0$2.0M$6.2M$-15.4M
Continuing Ops$-145.2M$10.9M$89.2M$204.8M
Discontinued Ops$0$0$0$0
Net Income$-140.0M$10.9M$89.2M$204.8M
Minority Interest$0$0$0$0
Net to Common$-140.0M$10.9M$89.2M$204.8M
Metric2022202320242025
Current Assets$383.8M$587.9M$742.0M$1.02B
Cash & Equivalents$161.9M$358.3M$344.9M$496.3M
Accounts Receivable—$42.0M$104.7M$127.4M
Inventory—$7.0M$26.5M$40.5M
Prepaid Expenses$4.6M$6.7M$13.3M$14.9M
Other Current Assets$217.3M$173.8M$252.7M$345.5M
Long-Term Assets$174.7M$230.4M$313.8M$309.2M
PP&E (Net)$161.7M$161.2M$155.2M$150.8M
Operating Leases$8.0M$7.0M$6.3M$7.2M
LT Investments$4.6M$62.0M$152.1M$128.1M
Other LT Assets$324.0K$263.0K$231.0K$23.1M
Total Assets$558.5M$818.4M$1.06B$1.33B
Current Liabilities$28.8M$33.1M$102.0M$102.9M
Accounts Payable$4.0M$4.1M$5.0M$3.2M
Current Leases$1.6M$1.5M$1.2M$1.8M
Other Current Liab$23.3M$27.5M$95.8M$97.9M
Long-Term Liabilities$7.4M$6.6M$7.5M$11.3M
LT Operating Leases$7.4M$6.6M$6.0M$7.6M
Other LT Liab$0$0$1.4M$3.7M
Total Liabilities$36.2M$39.7M$109.5M$114.2M
Shareholders' Equity$522.2M$778.6M$946.4M$1.22B
Paid-In Capital$803.7M$1.05B$1.13B$1.19B
Retained Earnings$-280.8M$-269.8M$-180.7M$24.2M
AOCI$-728.0K$638.0K$-190.0K$1.1M
Total L&E$558.5M$818.4M$1.06B$1.33B
Metric2022202320242025
Net Income (CFO)$-140.0M$10.9M$89.2M$204.8M
Non-Cash Adjustments$35.0M$-151.7M$-57.1M$-87.1M
Working Capital Changes$4.4M$51.9M$91.3M$83.1M
Cash from Operations$-100.6M$-88.8M$123.4M$200.9M
Capital Expenditures$53.0M$11.8M$4.2M$12.0M
Cash from Investing$-114.1M$82.6M$-163.4M$-58.4M
Cash from Financing$35.3M$202.8M$27.0M$8.7M
FX Effect$-41.0K$-156.0K$-458.0K$286.0K
Net Change in Cash$-179.3M$196.4M$-13.5M$151.4M
Beginning Cash$341.2M$161.9M$358.3M$344.9M
Ending Cash$161.9M$358.3M$344.9M$496.3M

Frequently Asked Questions

How does Krystal Biotech, Inc. make money?

The company's revenue is derived primarily from its core therapeutic pipeline focused on rare genetic metabolic disorders, including conditions like Fabry disease and Gaucher disease. Significant portions of income stem from commercial sales of approved products such as Naxitamab and potential licensing deals with major pharmaceutical partners. Additional segments include collaboration revenues where the company provides technology or co-develops specific molecular entities for external clients.

What are the main risks for KRYS?

The company faces significant clinical trial risks, where failure to demonstrate efficacy or safety could lead to substantial write-offs and loss of investor confidence. Regulatory approval timelines remain uncertain in the evolving orphan drug landscape, potentially delaying expected revenue recognition from new pipeline assets. Dependence on a limited number of high-value partnerships exposes the firm to counterparty risk if licensing agreements are terminated or underperform. Intense competition from large pharmaceutical firms entering rare disease space could erode pricing power and market share for existing therapies.

What is KRYS's competitive advantage?

Krystal Biotech possesses a deep proprietary understanding of rare metabolic disease pathways, granting it a first-mover advantage in niche markets with high unmet need. The company has established a robust partnership ecosystem that reduces commercialization costs and expands market reach without heavy capital expenditure on sales infrastructure. Its specialized technology platform allows for rapid iteration and development of next-generation treatments that differentiate it from larger competitors focused on broader indications.

Related Companies

Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.