Berenberg starts Krystal Biotech at buy, cites upcoming drug launch (KRYS)

Berenberg has initiated coverage of Krystal Biotech (NASDAQ:KRYS) with a buy rating, commenting that it sees the shares as undervalued and that the company’s upcoming launch of its drug Vyjuvek for dystrophic epidermolysis bullosa hasn’t been fully priced in.

Berenberg said it believes Krystal’s gene delivery platform, which allows for re-dosing, could expand gene therapy to diseases that don’t fit the “one and done” profile. It also sees the platform capable of generating disease-modifying treatments for other rare diseases.

The bank said it saw “significant investment opportunity” ahead of the Vyjuvek US launch in Q3 2023 and a potential EU launch in H2 2024.

Berenberg set a price target of $154 for the stock.