Krystal Biotech , Inc. (NASDAQ:KRYS) has reported a significant sale of shares by President and CEO Krishnan Krish S, according to recent SEC filings. The executive sold a total of $8,788,060 worth of stock, with transactions for non-derivative securities totaling $4,394,160 at prices ranging from $171.488 to $178.3564. Additionally, sales involving Krishnan's spouse accounted for another $4,393,900, with prices between $171.3962 and $178.1447.
The transactions, executed on June 11, 2024, were part of a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This particular trading plan had been in place since September 11, 2023, and stipulated quarterly sales of 25,000 shares with a minimum price of $100.00 per share. It has now reached its maximum share limit and has thus been terminated.
The sales by Krishnan and his spouse were executed in multiple trades, with the reported prices reflecting the weighted average sale price within the provided ranges. The SEC filing includes undertakings by the reporting person to provide full information regarding the number of shares sold at each separate price within the ranges upon request.
Following these transactions, the CEO's directly owned shares have decreased, but Krishnan still maintains indirect ownership through family trusts. Specifically, the Krishnan Spousal Trust holds 90,000 shares, and the Krishnan Family Trust, of which Krishnan and his spouse are joint beneficial owners with joint voting and investment control, holds 50,000 shares.
Krystal Biotech, based in Pittsburgh, PA, specializes in developing and commercializing gene therapies for dermatological diseases. The company has not made any official statement regarding the transactions as of yet. The stock market often closely watches insider transactions as they may reflect the executives' confidence in the company's current status and future prospects.
In other recent news, Krystal Biotech has reported impressive financial results for the first quarter of 2024, driven by the successful US commercialization of its product VYJUVEK. The company also anticipates regulatory filings in Japan and Europe, marking a significant step towards global expansion. VYJUVEK, a treatment for Dystrophic Epidermolysis Bullosa (DEB), has seen robust demand and high patient compliance, with 97% of treatments administered at home.
Krystal Biotech ended Q1 with a strong revenue growth and a gross margin of 95%, along with $359 million in cash. Despite a temporary disruption caused by the Change Healthcare (NASDAQ:CHNG) hack and a litigation settlement expense of $12.5 million, the company's cash position remains strong with $622.3 million in total cash and investments.
The company is also advancing its clinical pipeline and expanding its manufacturing capabilities. As part of its strategic initiatives, it is focusing on data analysis, healthcare professional education, and patient engagement programs. These recent developments indicate Krystal Biotech's commitment to meeting or exceeding its 2024 net revenue projections and driving sustained long-term growth.
InvestingPro Insights
Krystal Biotech, Inc. (NASDAQ:KRYS) has recently drawn attention with significant insider transactions. To provide a broader perspective on the company's financial health and market performance, here are key insights derived from InvestingPro data and tips.
InvestingPro Data highlights a robust gross profit margin for Krystal Biotech, standing at an impressive 94.25% for the last twelve months as of Q1 2024. This suggests that the company effectively controls its production costs, which is crucial for its growth and profitability. Moreover, the company's market capitalization is currently $5.08 billion, reflecting its valuation in the market. Despite a high P/E ratio of 85.89, the PEG ratio of 0.64 indicates that the company's earnings growth is expected to outpace its P/E ratio, which could be appealing to growth-oriented investors.
Among the InvestingPro Tips, two particularly stand out for Krystal Biotech. Firstly, the company holds more cash than debt on its balance sheet, which provides it with financial flexibility and may be a sign of a strong balance sheet. Secondly, analysts anticipate sales growth in the current year, which could translate to potential upside for the company's stock price. These factors may offer some reassurance to investors in light of the recent insider sales.
For those interested in gaining more insights and tips on Krystal Biotech, InvestingPro offers an additional 16 tips that can be accessed at https://www.investing.com/pro/KRYS. To delve deeper into these metrics and make informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tools could prove invaluable in assessing the potential risks and opportunities associated with Krystal Biotech's stock, particularly in the context of the insider trading activity.
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