Krystal Biotech (KRYS) Q2 2024 earnings summary

Executive summary

• Net product revenue for Q2 2024 reached $70.3M, up 55.3% sequentially, with cumulative revenue since VYJUVEK launch totaling $166.2M.

• Net income for Q2 2024 was $15.6M, or $0.54 per basic share, a turnaround from a net loss of $33.2M in Q2 2023.

• Gross margin for Q2 2024 was 91%, with high patient compliance and broad reimbursement coverage for VYJUVEK in the U.S.

• Strong cash and investments position at $628.9M as of June 30, 2024, supporting ongoing operations and R&D.

• Three clinical readouts expected in 2H 2024 across aesthetics, respiratory, and oncology pipelines.

Financial highlights

• Q2 2024 net product revenue: $70.3M, a 55.3% increase over Q1 2024; six months ended June 30, 2024: $115.5M.

• Gross margin for Q2 2024 was 91%; cost of goods sold was $6.0M.

• R&D expenses were $15.6M; SG&A expenses were $27.6M; litigation settlement expenses were $12.5M in Q2 and $25M YTD.

• Net income for the six months ended June 30, 2024, was $16.5M, or $0.58 per basic share.

• Cash and investments totaled $628.9M as of June 30, 2024.

Outlook and guidance

• Expects continued revenue growth in the U.S. and launches in Europe and Japan in 2025, with EMA and Japan NDA decisions anticipated in H2 2024.

• Non-GAAP R&D and SG&A expense guidance for 2024 remains $150M–$175M, excluding stock-based compensation.

• Gross margins expected to remain above 90% and improve to over 95% in coming years.

• Management expects cash and investments to fund operations for at least 12 months from the filing date.

• Three major clinical data readouts expected in 2H 2024: KB301 (aesthetics), KB408 (AATD), and KB707 (oncology).