Does TimesSquare's Exit After Weaker Results Signal a Shift in Krystal Biotech's (KRYS) Growth Priorities?

• Earlier this month, Krystal Biotech presented at the Cantor Global Healthcare Conference in New York, while recent disclosures showed TimesSquare Capital Management reduced its stake after first quarter results fell short, citing declining new patient starts and sales.
• An important takeaway is that, despite current challenges, Krystal Biotech is actively expanding its salesforce and remains focused on its pipeline of genetic therapies for rare diseases.
• Let’s explore how the recent withdrawal by a major investor following weaker quarterly results could shift Krystal Biotech’s investment outlook.

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Krystal Biotech Investment Narrative Recap

Owning shares in Krystal Biotech today means believing in its ability to drive sustained growth through VYJUVEK while scaling its rare disease pipeline internationally. The recent exit by TimesSquare Capital Management, following weaker Q1 results, spotlights the risk of ongoing revenue volatility from unpredictable patient treatment patterns, but does not materially disrupt the main short-term catalyst, which remains execution of international launches and commercial scaling of VYJUVEK.

Among the latest announcements, securing marketing authorization for VYJUVEK in Japan stands out. This milestone reinforces Krystal’s expansion plans and has direct relevance to its near-term revenue catalysts by opening new market opportunities and supporting top-line growth that can help buffer quarter-to-quarter volatility.

Yet, as strong as international approvals appear, investors should also be mindful of what happens when quarterly patient starts do not meet expectations...

Read the full narrative on Krystal Biotech (it's free!)

Krystal Biotech's narrative projects $849.4 million in revenue and $485.8 million in earnings by 2028. This requires 33.2% yearly revenue growth and a $339.1 million increase in earnings from the current $146.7 million.

Uncover how Krystal Biotech's forecasts yield a $205.20 fair value, a 43% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community members estimate Krystal Biotech’s fair value between US$176 and US$487 per share. Some see meaningful upside despite quarterly sales volatility and patient onboarding unpredictability, prompting a range of market views worth considering.

Explore 4 other fair value estimates on Krystal Biotech - why the stock might be worth just $176.00!

Build Your Own Krystal Biotech Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Krystal Biotech research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Krystal Biotech research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Krystal Biotech's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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