Krystal Biotech initiated with a Buy at Citi

Citi initiated coverage of Krystal Biotech with a Buy rating and $160 price target. The analyst We expects Krystal’s topical, redosable gene therapy Vyjuvek to gain “rapid adoption” among U.S. patients with dystrophic epidermolysis bullosa. The firm recommends owning the stock for the launch. While the company is currently positioning Vyjuvek as a $750M global market opportunity, this assessment is likely to prove conservative over time as patient identification rates improve with the availability of the first approved DEB therapy, the antilust tells investors in a research note. Citi also anticipates the broader potential of Krystal’s “unique” HSV-1-based gene delivery platform will come into increased focus next year.