$300 Buys 2 Biotech Stocks for Long-Term Gains

Promising Biotech Opportunities with Blockbuster Potential

Two innovative biotechnology companies, each equipped with a single commercialized therapy, stand out due to their remarkable potential for substantial market success. Krystal Biotech (KRYS, up 2.58%) and ARS Pharmaceuticals (SPRY, up 0.68%) have captured significant investor interest throughout the past year. This attention stems from the groundbreaking nature of their respective flagship products, which represent pioneering advancements in medical treatment.

In 2023, Krystal Biotech achieved a historic milestone by launching Vyjuvek, marking the debut of the world’s first topical gene therapy. This therapy also became the initial FDA-approved treatment specifically designed for dystrophic epidermolysis bullosa, a rare and debilitating skin condition that leads to chronic blistering and scarring. Fast-forward to 2024, and ARS Pharmaceuticals followed suit with FDA clearance for Neffy, a revolutionary nasal spray formulation of epinephrine. Neffy offers the first non-injectable option for managing anaphylaxis, a life-threatening allergic emergency that demands rapid intervention.

Both organizations are diligently pursuing expansions of their primary therapies’ indications while channeling their burgeoning sales revenues into robust research and development pipelines. As is typical for biotechs relying on just one approved product, these stocks carry inherent risks, including regulatory hurdles and clinical uncertainties. Nevertheless, the substantial growth prospects make them compelling considerations for investors with a tolerance for volatility and a focus on long-term horizons.

Krystal Biotech’s Strategic Pipeline Positions It for Expansion

Krystal Biotech employs a unique approach to viral technology, ingeniously harnessing viruses’ natural propensity to propagate within the human body. Rather than combating them, the company engineers viral vectors—essentially customized viruses—to transport therapeutic genetic material directly to affected cells. This methodology underpins their gene therapies targeting a spectrum of conditions, such as cystic fibrosis, various pulmonary disorders, and specific oncology indications.

A standout candidate in Krystal’s portfolio is KB707, engineered as a potential therapy for patients battling advanced or metastatic non-small cell lung cancer, one of the most prevalent forms of lung malignancy. Recently, the company received encouraging feedback from the FDA, which granted KB707 the prestigious Regenerative Medicine Advanced Therapy (RMAT) designation. This status is reserved for promising regenerative treatments addressing serious unmet medical needs and can expedite the development timeline, potentially accelerating clinical trials and the path to regulatory approval.

Krystal Biotech is scheduled to unveil its full fourth-quarter financial results on February 17. In anticipation, the company shared preliminary figures that underscore explosive growth for Vyjuvek, their gel-based treatment applied topically to combat the hand-specific blistering and scarring associated with dystrophic epidermolysis bullosa. Management projects full-year sales between $388 million and $389 million, reflecting a robust 34% year-over-year increase when measured at the midpoint. This surge in revenue not only validates Vyjuvek’s market reception but also fortifies the company’s balance sheet for further innovation.

Although formal guidance on earnings per share (EPS) remains pending, Wall Street analysts forecast a full-year EPS range of $6.46 to $8.92. This projection implies a staggering 156% growth from the previous year at the midpoint, highlighting the therapy’s scalability and the company’s operational efficiencies. These incoming funds will be pivotal in advancing the remaining gene therapy programs in Krystal’s diverse pipeline, potentially unlocking multiple revenue streams in the years ahead.

The stock has demonstrated impressive momentum, climbing more than 10% since the start of the year and surging nearly 80% over the trailing 12 months. Currently trading around $270 per share, a $300 investment would secure precisely one share, positioning early investors to benefit from anticipated pipeline milestones and Vyjuvek’s continued commercialization.

ARS Pharmaceuticals Targets Allergic Emergencies with Needle-Free Innovation

ARS Pharmaceuticals specializes in safeguarding individuals prone to severe allergic responses that escalate to anaphylaxis. This critical condition arises when the immune system unleashes a cascade of inflammatory chemicals, potentially triggering systemic shock, airway constriction, and cardiovascular collapse if not addressed immediately.

The company encountered a regulatory setback recently when the FDA critiqued certain promotional materials for Neffy. Regulators determined that the advertising inadvertently suggested the nasal spray could entirely supplant injectable epinephrine in all anaphylaxis scenarios, which overstated its standalone efficacy. ARS Pharma promptly addressed these concerns, reaffirming Neffy’s role as a vital, patient-friendly alternative that complements existing standards of care.

Reflecting these challenges, ARS Pharma’s shares have declined over 24% both year-to-date and across the past year, rendering it a higher-risk proposition compared to Krystal Biotech. Profitability remains elusive, with ongoing investments in commercialization and pipeline advancement. Yet, the product’s adoption trajectory paints an optimistic picture. For the first nine months of 2025, revenues soared to $51.8 million, a dramatic leap from a mere $568,000 in the comparable 2024 period—a testament to Neffy’s appeal amid a market dominated by injection-phobic patients.

Despite the nine-month net loss of $1.32 per share, ARS Pharma maintains a sturdy financial position with $288.2 million in cash reserves. Company leadership asserts this liquidity runway extends comfortably into profitability, providing ample flexibility for strategic maneuvers. The opportunity is vast: Fortune Business Insights estimates the global epinephrine market at $2.48 billion in 2025, ripe for disruption by Neffy’s convenient delivery mechanism.

Beyond optimizing Neffy’s core anaphylaxis indication, ARS Pharma eyes label expansions into additional allergic contexts. Complementing this is ARS-2, an intranasal epinephrine variant tailored for chronic urticaria—a persistent hive-like skin condition often allergy-triggered and inadequately managed by current options. This dual-pronged strategy could significantly broaden the company’s addressable market.

At a share price of approximately $8.81, $300 enables the purchase of about 34 shares, offering leveraged exposure to Neffy’s growth inflection and pipeline catalysts.

Key Financial Highlights and Investment Considerations

Krystal Biotech boasts a market capitalization of $8.0 billion, with its stock recently closing at $277.23 after a 2.58% daily gain. Trading volume stands at 9.8K shares against an average of 286K, within a 52-week range of $122.80 to $295.98. Gross margins impress at 92.61%, underscoring Vyjuvek’s premium pricing power and manufacturing prowess.

ARS Pharmaceuticals, with a smaller $875 million market cap, saw its shares rise 0.68% to $8.87. Daily volume reached 78K versus an average of 1.8M, spanning a 52-week range from $6.66 to $18.90. Gross margins of 89.29% signal strong product economics, even as the company scales operations.

Investors eyeing these biotechs should weigh their single-product dependency against blockbuster trajectories. Krystal’s RMAT-boosted oncology push and Vyjuvek’s sales momentum, paired with ARS Pharma’s market-penetrating Neffy and cash-backed runway, position both for transformative gains. With $300, strategic allocation across these names could yield enduring portfolio value amid biotech’s high-reward landscape.