Krystal Biotech Reports Significant Financial Growth, Revenue Surge in Latest Quarter

Krystal Biotech, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased to $982.3 million, up from $818.4 million at the end of 2023. Current assets also rose to $713.2 million, driven by a notable increase in accounts receivable, which surged to $97.3 million from $42.0 million. Cash and cash equivalents saw a modest increase to $374.0 million, while short-term investments rose to $214.4 million.

The company achieved product revenue of $83.8 million for the three months ended September 30, 2024, a remarkable increase from $8.6 million in the same period of 2023. For the nine months ended September 30, 2024, product revenue reached $199.4 million, compared to $8.6 million in the prior year. This surge in revenue is attributed to the commercial launch of VYJUVEK®, an FDA-approved gene therapy for dystrophic epidermolysis bullosa, which began sales following its approval in May 2023.

Despite the revenue growth, Krystal Biotech reported a net income of $27.2 million for the third quarter of 2024, down from $80.7 million in the same quarter of 2023. The decline in net income is largely due to a $12.5 million litigation settlement expense related to a settlement with PeriphaGen, as well as a significant decrease in gains from the sale of a priority review voucher, which contributed $100 million in the prior year. For the nine-month period, net income was $43.7 million, a substantial increase from $2.2 million in 2023.

Operating expenses for the third quarter increased to $61.4 million, up from $34.5 million in the same period last year, primarily driven by higher selling, general, and administrative expenses, including a $5.1 million rise in stock-based compensation. Research and development expenses also rose by 27% to $13.5 million, reflecting increased clinical development costs.

The company’s accumulated deficit improved to $(226.1 million) as of September 30, 2024, compared to $(269.8 million) at the end of 2023. Stockholders’ equity increased to $885.8 million, up from $778.6 million, indicating a strengthening financial position.

Looking ahead, Krystal Biotech plans to utilize its cash reserves, which total approximately $588.3 million, to fund operations for at least the next 12 months, while also preparing for international expansion of VYJUVEK into Europe and Japan in 2025.