Krystal Biotech reported second-quarter 2026 product revenue of $119.2 million, up 24% from $96.0 million a year earlier, as its lead gene therapy Vyjuvek continued to scale across the U.S. and international markets. First-half product revenue reached $235.6 million, compared with $184.2 million in the first six months of 2025.
Gross margin on Vyjuvek was 95% in the quarter. Cost of goods sold fell to $6.4 million from $7.2 million in the prior-year quarter, even as revenue rose sharply.
Operating spending moved higher. Research and development expense was $14.5 million in the quarter, essentially flat from $14.4 million a year earlier, while selling, general and administrative expense increased to $39.9 million from $35.1 million. For the first half, R&D expense rose to $29.8 million from $28.7 million, and SG&A climbed to $80.9 million from $67.7 million.
Net income for the quarter increased to $54.8 million, or $1.85 per basic share, from $38.3 million, or $1.33 per share, in the second quarter of 2025. For the first half, net income rose to $110.7 million, or $3.76 per basic share, from $74.1 million, or $2.57 per share, a year earlier.
The company ended June with $1.1 billion in cash, cash equivalents and investments.
On Vyjuvek’s commercial rollout, Krystal said it has secured more than 730 reimbursement approvals and expanded its prescriber base to more than 640 unique prescribers. Internationally, it said launches in Italy and Spain remain expected before year-end, while pricing discussions continue in Germany, France and the U.K.
In the pipeline, Krystal said its KB803 eye program in epidermolysis bullosa was fully enrolled in April and remains on track for top-line data in the fourth quarter of 2026. The KB801 neurotrophic keratitis study is still enrolling, with completion of about 60 patients targeted before year-end. The KB407 cystic fibrosis study is ongoing, with interim results expected before year-end and a registrational study slated for 2027. KB408 in alpha-1 antitrypsin deficiency lung disease is also continuing, with interim data expected in 2027.
In dermatology, the company has begun enrolling its KB111 study in Hailey-Hailey disease and expects interim results before year-end. In oncology, interim data from inhaled KB707 in non-small cell lung cancer showed a 31% objective response rate and 75% disease control rate in combination with pembrolizumab, compared with a previously disclosed 36% objective response rate for monotherapy. Krystal also said it has enrolled three patients in its intratumoral KB707 study in Gorlin syndrome.
For 2026, Krystal is guiding to non-GAAP combined R&D and SG&A expense of $175 million to $195 million. As a result of these announcements, the company's shares have moved -6.54% on the market, and are now trading at a price of $318.8199. If you want to know more, read the company's complete 8-K report here.
