Krystal Biotech shares could rally 30%-50% on data readout: William Blair

Shares of Krystal Biotech can rally 30%-50% on positive data from the company’s KB103 Phase I/II trial for the treatment of dystrophic epidermolysis bullosa, expected in the first half of 2019, William Blair analyst Raju Prasad tells investors in a research note. The analyst continues to view KB103 as a best-in*class therapy. The analyst believes the ability to durably close treated wounds versus intra-patient placebo control and COL7A1 expression in the 30% to 40% range would be considered a robust result leading to roughly 30%-50% share upside. A clinical result with lower COL7A1 expression could still lead to 10%-20% share upside, says Prasad. However, he adds that a miss on all clinical and functional endpoints would likely lead shares to trade in the $15 range. The stock closed yesterday at $28.54. The analyst keeps an Outperform rating on Krystal Biotech.

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