Krystal Biotech, Inc.

Krystal Biotech (Nasdaq: KRYS) develops genetic medicines. Its commercial product, VYJUVEK, treats dystrophic epidermolysis bullosa, a rare inherited condition that causes fragile, blistering skin. Other programs target skin, eye and lung conditions.

Commercial growth and operating profit

The quarters ended September 30. Revenue also increased from $119.2 million in the second quarter of 2026. Last year’s third-quarter net income benefited from tax accounting; the decline in net income in 2026 came alongside higher operating profit.

Operating cash flow for the first nine months of 2026 was $246.4 million, compared with $123.4 million a year earlier. The comparison includes a $31.3 million final litigation payment in the earlier period as well as changes in working capital and tax items.

At September 30, cash was $462.8 million, short-term investments were $449.0 million and long-term investments were $282.3 million. These resources support both development spending and capital returns.

Spending and the repurchase plan

The November forecast put 2026 combined research, development, selling and administrative expenses at $155 million to $165 million, excluding stock-based compensation. The August forecast was $175 million to $195 million on the same basis.

Krystal announced an authorization to repurchase up to $400 million of stock on November 2. Management expects opportunistic purchases over the next two years. The authorization has no fixed expiration date.

The revised development timetable

The August update expected KB803 eye study results in the final quarter of 2026. The November update moved the final patient visit to February 2027, with results shortly afterward. KB801 eye study enrollment moved from the end of 2026 to 2027. Interim KB407 lung study results moved from the end of 2026 to the first half of 2027.

Italy’s VYJUVEK launch is now expected in early 2027, rather than later in 2026. Pricing negotiations in Italy and Germany are complete.