Krystal Biotech Forecasts Strong Fourth Quarter Revenue as Rare Disease Pipeline Expands

2026-01-12 companies

San Francisco, Sunday, 11 January 2026.
Krystal Biotech projects $107 million in quarterly revenue and holds $955 million in cash, financing a strategic expansion following a breakthrough in its cystic fibrosis gene therapy program.

Solidifying Financial Foundations

In a preliminary update released on January 11, 2026, ahead of the J.P. Morgan Healthcare Conference, Krystal Biotech (NASDAQ: KRYS) outlined a robust financial position driven by the commercial performance of its flagship gene therapy, VYJUVEK [1][2]. The company estimates net product revenue for the fourth quarter of 2025 to range between $106 million and $107 million, contributing to a full-year 2025 revenue projection of $388 million to $389 million [1][5]. This revenue stream is bolstered by a substantial war chest; as of December 31, 2025, the company reported cash, cash equivalents, and investments totaling approximately $955 million [2][3]. According to Krish S. Krishnan, Chairman and CEO, the successful launch of VYJUVEK in markets such as Europe and Japan during 2025 has established a critical foundation for the company’s broader global ambitions in the rare disease sector [1][5].

Clinical Breakthroughs Drive Momentum

Beyond the balance sheet, investor sentiment has been buoyed by significant clinical progress in Krystal’s pipeline, specifically regarding its inhaled gene therapy for cystic fibrosis (CF), KB407 [6]. On January 8, 2026, the company announced positive interim results from its Phase 1 CORAL-1 study, which confirmed the successful delivery and expression of wild-type CFTR protein in the lungs of patients [4]. The data indicated that KB407 transduction was confirmed in all six patients who underwent successful bronchoscopies, with the percentage of conducting airway cells transduced ranging from 29.4% to 42.1% [4]. Dr. Jorge Lascano of the University of Florida described this molecular confirmation as a “tremendous breakthrough” for the field, particularly for patients unable to benefit from existing modulator therapies [4]. Following this update, the company’s stock saw an immediate uplift of 5.9% in early January trading [6].

Strategic Roadmap for 2026 and Beyond

Looking ahead to the fiscal year 2026, Krystal Biotech has outlined a clear operational strategy involving both commercial expansion and clinical acceleration. Management has provided non-GAAP guidance for combined R&D and SG&A expenses in the range of $175 million to $195 million for 2026 [5]. Key corporate objectives include launching VYJUVEK in at least one additional major European market and advancing the clinical pipeline [2]. Notably, the company has increased enrollment targets for its registrational NK study from 27 to 60 patients, with top-line data expected before the end of 2026 [5]. Furthermore, the company anticipates commencing enrollment for the CORAL-3 registrational study for KB407 in the first half of 2026, pending alignment with the FDA [4].

Long-Term Vision

Krystal Biotech is positioning itself for sustained long-term growth with an ambitious vision for the end of the decade. By 2030, the company aims to have at least four marketed rare disease medicines, including VYJUVEK, treating a patient population exceeding 10,000 worldwide [2][5]. This long-term strategy relies on the company’s ability to leverage its current cash reserves of nearly $1 billion to fund the development of its diversified pipeline, which includes candidates for ocular complications of dystrophic epidermolysis bullosa (KB803) and TGM1-deficient autosomal recessive congenital ichthyosis (KB105), alongside its CF and NK programs [3][5]. Full financial results for the fourth quarter and full year 2025 are scheduled to be reported in February 2026 [1].

Sources

Biotechnology Earnings