Why KB801’s Patent Filing Matters For Krystal Biotech Stock

Krystal Biotech (KRYS) recently filed a response with the U.S. Patent and Trademark Office for KB801, sharing previously undisclosed single patient data on corneal defect closure from a discontinued neurotrophic keratitis study.

The company stressed that this observation comes from one patient and is not a substitute for clinical trial results. However, the disclosure offers investors a clearer view of how KB801 is progressing toward a pivotal trial.

Against this KB801 update, Krystal Biotech’s share price has eased slightly over the past month but still shows strong momentum, with a 90 day share price return of 22.87% and a one year total shareholder return of 123.21%.

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Bulls point to Krystal Biotech’s strong recent returns and growing genetic medicine portfolio, while bears question how much of that optimism is already in the price. So what does today’s valuation actually say?

Most Popular Narrative: 40.7% Overvalued

Krystal Biotech last closed at $339.06, while the most followed narrative puts fair value at $241, setting up a clear gap between market price and that model.

While Krystal’s HSV-1 gene therapy platform pipeline offers diversification and potential upside, heavy reliance on new clinical data readouts for multiple programs in 2025 (CF, AATD, ophthalmology, aesthetics) introduces risk, any setbacks or delays in trial outcomes could slow future adoption and revenue streams, especially given the high R&D spend and cash burn required to advance these programs.

Want to understand why this narrative still supports a premium valuation? It hinges on fast growing revenue, improving margins, and a future earnings multiple that assumes strong delivery. Curious which specific forecasts and timelines sit under those assumptions? The full narrative lays out the numbers behind that $241 fair value.

Result: Fair Value of $241 (OVERVALUED)

However, Krystal Biotech’s story could shift quickly if key ophthalmology or respiratory readouts disappoint, or if regulatory scrutiny around genetic testing escalates.

Another View: SWS DCF Versus The Bearish Narrative On Krystal Biotech

The bearish narrative pegs Krystal Biotech’s fair value at $241, implying the stock is 40.7% overvalued. Yet the Simply Wall St DCF model suggests the opposite, with a future cash flow value of $1,081.28 per share, far above the current $339.06. Which set of assumptions feels more realistic to you?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Krystal Biotech for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed views around Krystal Biotech, do you want to rely on others or test the story yourself and move quickly to firm up your stance? To see how the risks and potential rewards stack up side by side, take a closer look at the 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.