Krystal Completes Germany and Italy VYJUVEK Pricing Talks

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter VYJUVEK revenue reached $127.3 million, up 30%, as the company posted $63.1 million of net income and authorized a $400 million buyback.

Krystal Biotech (KRYS) completed VYJUVEK pricing negotiations in Germany and Italy in the third quarter and said it expects to launch the gene therapy in Italy in early 2027, after the prior quarter still described German talks as ongoing and Italy and Spain launches as expected before year end.

The commercial-stage genetic-medicines company recorded $127.3 million in global VYJUVEK net product revenue for the three months ended September 30, 2026, up 30% from $97.8 million a year earlier. Sequential growth continued from $119.2 million in the second quarter, when year-over-year growth was 24%, and $116.4 million in the first quarter. Gross margin was 94%.

U.S. demand remained the core of the franchise. The company said it had secured more than 760 reimbursement approvals nationwide, versus more than 730 at the end of the second quarter. It is expanding reach in Germany, France and Japan, converting physician interest into patient starts. Pricing talks continue in several European countries and the United Kingdom; decisions are expected in Spain later this year and in France no earlier than 2027. Marketing authorization applications have been submitted in Australia, with a Switzerland filing expected before year end.

Income from operations was $71.1 million, up from $41.4 million a year earlier, while total operating expenses were essentially unchanged at $56.2 million. Selling, general and administrative expenses were $33.7 million, down from $37.6 million. Research and development expenses were $14.9 million. Cost of goods sold was $7.6 million.

Net income was $63.1 million, or $2.13 a share basic and $2.05 diluted, versus $79.4 million, or $2.74 basic and $2.66 diluted, a year earlier. The swing reflected an income tax expense of $17.1 million after a $31.4 million tax benefit in the year-ago quarter. Interest and other income, net, was $9.0 million.

Cash, cash equivalents and investments totaled $1.2 billion as of September 30, 2026. The board authorized a share repurchase program of up to $400 million, with repurchases expected opportunistically over the next two years. Chairman and Chief Executive Officer Krish S. Krishnan said continued VYJUVEK growth is supporting profitability and funding the pipeline, and that the buyback reflects confidence in long-term growth and disciplined capital allocation.

Full-year 2026 non-GAAP combined research and development and selling, general and administrative expense guidance is $155.0 million to $165.0 million, excluding stock-based compensation.

In October the company announced initial proof of concept for KB113 in Gorlin syndrome: in a three-patient pilot, more than 80% of assessed basal cell carcinoma lesions showed investigator-assessed regression, including in non-injected lesions. Histologic assessment confirmed complete clearance of an injected lesion in each patient. Krystal has initiated FDA discussions on advanced clinical development.

Ophthalmology timelines slipped. In IOLITE, three additional KB803 patients were enrolled, including one one-year-old child, replacing two withdrawals; the company now expects the last patient visit in February 2027 with top-line results shortly thereafter, after previously targeting a fourth-quarter 2026 readout. In EMERALD-1, KB801 enrollment has progressed slower than initially anticipated; the company now expects to complete enrollment of about 60 patients and report top-line results in 2027.

KB407 in cystic fibrosis remains on track to start a registrational study in 2027 after selection for the FDA’s Complex Innovative Trial Design program. KB408 interim results in alpha-1 antitrypsin deficiency are expected in 2027. Inhaled KB707 in non-small cell lung cancer is enrolling a global combination cohort, with about 70 patients expected to be dosed by mid-2027. Jeune Aesthetics expects to start a Phase 2 study of KB304 in 2027.