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    KRYS
    Earnings call· Jun 2026(Q2 FY26)

    Krystal Biotech Q2 FY26 earnings call KRYS

    Aug 3, 2026 Source

    Executive summary

    Krystal Biotech Q2 FY26 — Strong VYJUVEK Performance and Advancing Pipeline

    Krystal Biotech delivered a strong Q2 FY26, driven by robust U.S. VYJUVEK sales and significant pipeline advancements. While international revenue was impacted by German pricing reserves, underlying demand remains strong, and the company is actively navigating market-specific access challenges. The clinical pipeline is progressing with multiple registrational studies nearing readouts and new trials planned for 2027, positioning Krystal to evolve into a multi-product gene therapy company.

    Highlights

    5
    • U.S. net revenue for VYJUVEK was $91.6 million for the quarter.

    • Global sales of VYJUVEK increased 24% year-over-year to $119.2 million.

    • Gross margin improved to 95% for the quarter, up from 93% in Q2 FY25.

    • Cash and investments exceeded $1.1 billion, strengthening the financial foundation.

    • Achieved over 730 U.S. reimbursement approvals for VYJUVEK, surpassing the 60% penetration target.

    Concerns

    3
    • European and Japan reported revenue was broadly flat due to a reserve provision related to ongoing pricing negotiations in Germany.

    • Formal pricing and reimbursement discussions in France are expected to progress into 2027.

    • Intensive prescription renewal requirements in Japan can burden patients in the first year of launch.

    Guidance & targets

    4
    CategoryTargetConfidence
    Non-GAAP R&D and SG&A expenses
    $175 million to $195 million
    medium materiality
    High
    Registrational study start
    2 more registrational trials
    high materiality
    High
    Registrational study start for NSCLC
    Initiate a registrational study
    high materiality
    High
    German pricing negotiations completion
    Complete negotiations
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Global VYJUVEK Sales
    Includes sales from commercial launches in Europe and Japan.
    Sales from commercial launches in Europe and JapanCompared to $96 million in Q2 2025
    $119.2 million24%
    U.S. VYJUVEK Net Revenue
    Strong commercial performance in the U.S.
    $91.6 million
    Europe and Japan VYJUVEK Revenue
    Primarily due to a reserve provision related to the ongoing pricing process in Germany, not reflecting underlying demand.
    broadly flat

    Operational metrics

    15
    Global Sales of VYJUVEK
    $119.2 million24% increase from Q2 FY25
    Q2 FY26

    Includes sales from commercial launches in Europe and Japan.

    Global Sales of VYJUVEK (prior year)
    $96 million
    Q2 FY25

    Comparison for current quarter's global sales.

    Gross Margin
    95%improved from 93% in Q2 FY25
    Q2 FY26

    Improved from the prior year quarter.

    R&D Expenses
    $14.5 millionflat to $14.4 million in Q2 FY25
    Q2 FY26

    Essentially flat compared to the prior year.

    G&A Expenses
    $39.9 millioncompared to $35.1 million in Q2 FY25
    Q2 FY26

    Increase primarily due to headcount and commercial costs.

    Non-cash stock-based compensation
    $14.2 millioncompared to $14.1 million in Q2 FY25
    Q2 FY26

    Included in operating expenses.

    Cash and Investments Balance
    $1.1 billionexceeding
    Q2 FY26

    Strengthening financial foundation.

    VYJUVEK U.S. Reimbursement Approvals
    730more than
    Q2 FY26

    Achieved for VYJUVEK in the U.S.

    VYJUVEK U.S. Penetration Target
    60%surpassed initial target
    Q2 FY26

    Surpassed initial penetration target of the diagnosed DEB patient pool.

    KB707 Monotherapy Response Rate
    36%
    Last year

    Achieved in heavily treated late-line NSCLC patients.

    KB707 Combination Response Rate
    31%
    ASCO this year

    Achieved in late-line NSCLC patients in combination with pembrolizumab.

    VYJUVEK Western Europe and Japan Patients Treated
    180
    So far

    Number of patients treated in Western Europe and Japan.

    Hailey-Hailey Natural History Study Enrollment
    60-70
    Ongoing

    Patients already enrolled in the natural history study.

    VYJUVEK U.S. Reimbursement Approvals (quarterly pace)
    35-50
    Quarterly

    Consistent pace of reimbursement approvals, indicating healthy demand.

    European Vial Sales
    double digitsincrease
    Sequentially

    Sequential increase in European vial sales.

    Risks & headwinds

    5
    German Pricing NegotiationsQ2 FY26, expected completion Q3 FY26

    Reserve provision impacting reported European revenue

    Mitigation: Conservative accrual; constructive engagement with authorities; aiming for sustainable reimbursement.

    French Pricing and Reimbursement DiscussionsOngoing into 2027

    Expected to progress into 2027

    Mitigation: Constructive engagement with authorities; strong clinical evidence and potential value to patients.

    Japanese Prescription Renewal BurdenFirst year of launch

    Can put a heavy burden on patients in the first year of launch

    Mitigation: Working closely with prescribers and patients to ensure consistent weekly administration and minimize disruptions.

    Fragmented German Care LandscapeOngoing

    Only a limited proportion of DEB patients routinely seen at established spec centers

    Mitigation: Engaging a broader network of physicians and supporting patients in continuing treatment at home.

    French GMO Classification RequirementsOngoing

    Administration currently concentrated in hospital settings

    Mitigation: Working closely with centers to facilitate access and treatment continuity while exploring solutions for home administration.

    What to watch in Q3 FY26

    5

    KB803 (DEB ocular) Registrational Study Readout

    Later this year
    CurrentFully enrolled in April
    TargetReadout of ELITE study data

    Why it matters

    This is a registrational study for a new indication, potentially leading to BLA submission and expanding the VYJUVEK platform.

    Our registrational ELITE study evaluating KB803 in debt patients was fully enrolled in April and is on track for a readout later this year.

    Q&A highlights

    7

    Seeking clarity on European VYJUVEK demand despite flat reported revenue, compliance in Germany/France, and details on the Hailey-Hailey program's market, data, and registrational study plans.

    Laurent Goux confirmed strong underlying demand and patient inclusion/volume growth in Europe, attributing flat revenue to German pricing reserves. Compliance is good, similar to the U.S. Suma Krishnan detailed Hailey-Hailey's natural history study, scale validation, and Phase 1 study design, expecting data to inform FDA on endpoints for a 2027 registrational study.

    the market dynamics are pretty strong. We have been -- we're facing a strong growth in both patient inclusion and volume.

    asked by Jiale Song · answered by Laurent Goux

    2 min read5 chapters

    Detailed Narrative

    01

    International Commercial Progress and Market Access

    Krystal is observing strong commercial momentum for VYJUVEK in Europe and Japan, marked by increasing patient inclusions and treatment volumes. The company is actively engaged in pricing and reimbursement discussions across Germany, Italy, Spain, and the U.K., with France expected to progress into 2027. Regulatory milestones include MHRA marketing authorization in the U.K. and multiple additional submissions planned for Switzerland and Australia, despite challenges like fragmented care in Germany and GMO classification requirements in France.

    02

    U.S. Commercial Strategy and Patient Engagement

    U.S. net revenue for VYJUVEK reached $91.6 million, supported by over 730 reimbursement approvals, exceeding the initial 60% penetration target of the diagnosed DEB patient population. The commercial team is expanding its reach into community settings and enhancing patient engagement through virtual education, peer-to-peer programs like VYJUVEK Voices and VYJUVEK Connections, and partnerships with Debra America, adapting to evolving patient needs for wound care management.

    03

    Ocular Pipeline Advancements: KB803 and KB801

    The company is nearing readouts for two registrational studies in ocular indications. The ELITE study for KB803 in DEB ocular lesions was fully enrolled in April and is on track for a readout later this year, with BLA submission expected rapidly upon success. The Emerald One study for KB801 in Neurotrophic Keratitis (NK) is expected to complete enrollment before year-end, with data readout soon thereafter, leveraging the HSV-1 vector platform for repeat administration in the eye.

    04

    Rare Disease Pipeline: Cystic Fibrosis and Hailey-Hailey Disease

    KB407 for Cystic Fibrosis and KB111 for Hailey-Hailey disease are progressing with open-label, single-arm repeat dose studies. Interim results for both programs, involving 5 CF patients and 7 Hailey-Hailey patients, are expected before year-end. The company is collaborating with the FDA and patient foundations to finalize registrational study designs, with starts planned for 2027, aiming to address significant unmet needs in these patient populations.

    05

    Oncology Pipeline: KB707 Program

    Krystal's oncology pipeline, centered on KB707, is advancing. The inhaled KB707 formulation for NSCLC showed a 36% response rate as monotherapy and 31% in combination with pembrolizumab in late-line patients. Completion of the final dose expansion cohort (with chemotherapy) is expected later this year, leading to a registrational study start in 2027. Additionally, the intratumoral KB707 formulation is being evaluated in Gorlin Syndrome, a rare skin indication, with clinical updates anticipated later this year.

    AI-generated summary of the company’s earnings call. Not investment advice.