Goldman Sachs said Crystal Biotech shares could rally nearly 60% as the use of its gene therapy to treat cases of herpes simplex virus mounts. Analyst Madhu Kumar downgraded the under-the-radar biotechnology company from neutral rating, citing opportunities to use its HSV treatment to cure a rare inherited skin condition known as dystrophic epidermolysis bullosa (DEB). Upgraded to buy. Following talks with management, “we have modified our market model to better reflect Vujuvec’s opportunity in the DEB … which we believe could drive further upside for KRYS shares,” he told clients. Wrote in a note on Tuesday. According to the National Institutes of Health, DEB, a genetic condition that primarily causes blisters, affects fewer than 5,000 individuals in the US. Noting the promising outlook for the treatment, Kumar raised Goldman’s top global unadjusted sales expectations to $1.2 billion from $1.5 billion. They also expect a faster launch of therapies, expecting 25% and 48% peak penetration in 2024 and 2025, respectively. diseases in other organ systems,” he wrote. With the upgrade, Kumar raised the Wall Street firm’s price target to $124 from $79, suggesting shares could potentially rally nearly 59% in 2022. Crystal stock is now up nearly 11% this year after rising more than 13%.