H.C. Wainwright raised its price target for Krystal Biotech (NASDAQ:KRYS) to $56 from $38 after the company posted positive results from its GEM-2 study, a Phase 2 clinical trial of KB103 in patients with recessive dystrophic epidermolysis bullosa (RDEB). At midday on June 24, the stock was quoted at $37.56, up $8.41, or 29%.
Among the study’s clinical endpoints, the company said five out of six wounds treated with KB103 in the Phase 2 trial closed 100% during the trial; average time to complete wound closure was 23 days; except for one chronic wound, the remaining KB103 treated wounds remained 100% closed after the 90 day time point; follow up data from a Phase 1 study demonstrated compelling durability of KB103 efficacy as both patients show wound closure longer than six months. The treatment was safe and well tolerated among all patients.
“We believe the data … confirm the validity of KB103’s mechanism of action in addressing RDEB wounds and provide a solid foundation and clear insight into the design of an upcoming Phase 3 trial,” writes analyst Joseph Pantginis.
“First, the data today show that KB103 works on wounds regardless of their size,” he said. “Second, KB103 is showing efficacy in treating both chronic and recurring wounds.”
Krystal is planning to begin a pivotal trial by the end of 2019 and should provide updated data and clarity on design in the near future, Mr. Pantginis added.
