Keros Therapeutics’ (KROS) shares jumped 18.5% yesterday following an announcement that it is exploring strategic options, including a potential sale of the business. To aid the decision process, KROS will seek guidance from outside financial and legal advisors.As part of the strategic decision, Keros’ board of directors established a Strategic Committee, composed of independent and impartial directors, to oversee the process and provide a recommendation. The move could entail a potential business combinati ...

Keros Therapeutics, Inc.‘s KROS board of directors initiated a formal review process on Thursday to evaluate strategic alternatives, including a sale.“Consistent with our commitment to taking action to enhance stockholder value, Keros’ board determined to undertake a review of all strategic alternatives available to the Company,” said Jean-Jacques Bienaimé, Lead Independent Director. “During the pendency of the strategic review process, we remain focused on the execution of our strategy.”Keros intends to pr ...

Core Viewpoint - Keros Therapeutics, Inc. has initiated a formal review process to evaluate strategic alternatives aimed at maximizing stockholder value, including potential sale or business combination, continued investment in its pipeline, or returning excess capital to stockholders [1][2] Strategic Review Process - The Board of Directors has formed a Strategic Committee to oversee the review process, which will consider a comprehensive range of strategic alternatives [1] - There is no set deadline for the completion of the review process, and Keros plans to provide a preliminary update within 60 days of the announcement [2] Adoption of Stockholder Rights Plan - Keros has adopted a limited-duration stockholder rights plan to protect the integrity of the strategic review process, responding to significant stock accumulations by investors [3][4] - The rights plan aims to ensure fair participation in the review process and to prevent any entity from gaining control without paying an appropriate control premium [4] Rights Plan Details - The rights plan includes a dividend of one preferred share purchase right for each outstanding share of common stock, effective April 24, 2025, with rights becoming exercisable if ownership exceeds 10% [6] - Rights will allow holders to purchase additional shares at twice the market value if triggered, while existing stockholders at or above the threshold are grandfathered [6] - The rights will expire on April 9, 2026, unless redeemed or exchanged earlier by Keros [7] Company Overview - Keros Therapeutics is focused on developing novel therapeutics for disorders linked to dysfunctional signaling of the TGF-ß family of proteins, with product candidates targeting pulmonary arterial hypertension, neuromuscular diseases, and cytopenias [9]

LEXINGTON, Mass., March 31, 2025 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. ("Keros") (NASDAQ:KROS), a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta ("TGF-ß") family of proteins, today announced initial topline results from the Phase 1 clinical trial of KER-065 in healthy volunteers. Topline results from this ongoing tria ...

Core Viewpoint - Keros Therapeutics, Inc. (KROS) has seen a 3.7% increase in share price over the past four weeks, closing at $11.44, with analysts suggesting a potential upside of 157% based on a mean price target of $29.40 [1][2] Price Targets and Analyst Estimates - The mean estimate consists of 10 short-term price targets with a standard deviation of $10.46, indicating variability among analysts; the lowest estimate suggests a 31.1% increase, while the highest predicts a 275.9% surge to $43 [2] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction and magnitude [7] Earnings Estimates and Analyst Consensus - Analysts have shown increasing optimism about KROS's earnings prospects, with a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [9] - The Zacks Consensus Estimate for the current year has risen by 30.5% over the past month, with seven estimates increasing and no negative revisions [10] - KROS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] Caution on Price Targets - While price targets are often sought after by investors, they can mislead; empirical research shows that they rarely indicate actual stock price movements [5][6] - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [8]

Keros Therapeutics, Inc. (KROS) closed the last trading session at $11.59, gaining 5.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $29.40 indicates a 153.7% upside potential.The average comprises 10 short-term price targets ranging from a low of $15 to a high of $43, with a standard deviation of $10.46. While the lowest estimate indicates an increase of 29.4% from the current ...

Financial Performance - Keros Therapeutics reported a quarterly loss of $1.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.93, representing an earnings surprise of -22.58% [1] - The company posted revenues of $3.04 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 97.11%, compared to revenues of $0.14 million in the same quarter last year [2] - Over the last four quarters, Keros Therapeutics has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Performance - Keros Therapeutics shares have declined approximately 31.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.33 on revenues of $0.1 million, while for the current fiscal year, it is -$4.87 on revenues of $90.68 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Keros Therapeutics belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Keros Therapeutics' stock performance [5][6]

Financial Performance - The net loss for the year ended December 31, 2024, was $187.4 million, with an accumulated deficit of $568.8 million as of the same date [592]. - Total revenue for the year ended December 31, 2024, was $3.55 million, a significant increase from $151,000 in 2023 and no revenue in 2022 [620]. - The net loss for the year ended December 31, 2024, was $187.4 million, compared to a net loss of $153.0 million in 2023 [620]. - The company reported net losses of $187.4 million, $153.0 million, and $104.7 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $568.8 million as of December 31, 2024 [631]. Cash and Liquidity - As of December 31, 2024, the company had cash and cash equivalents of $559.9 million, which, along with a $200 million upfront payment from Takeda Pharmaceuticals, is expected to fund operations into 2029 [596]. - Cash and cash equivalents totaled $559.9 million as of December 31, 2024, which, along with a $200.0 million upfront payment from a license agreement, is expected to fund liquidity requirements into 2029 [634]. - The company experienced a net increase in cash and cash equivalents of $229.0 million for the year ended December 31, 2024 [637]. - The company had cash and cash equivalents of $559.9 million as of December 31, 2024, compared to $331.1 million as of December 31, 2023, indicating a significant increase in liquidity [662]. - The company has no outstanding debt subject to interest rate variability as of December 31, 2024, mitigating interest rate risk related to debt [663]. Revenue Generation - The company has not generated any revenue from product sales since its inception in 2015, as none of its product candidates have been approved for commercialization [587]. - The company does not expect to generate revenue from product sales until successful development and regulatory approval of its product candidates, which may take several years [632]. - The company has recognized $3.0 million in revenue from a development milestone related to the Hansoh Agreement for the year ended December 31, 2024 [603]. - The company’s revenue consists solely of payments received related to research collaborations and licensing of intellectual property [653]. Expenses - Research and development expenses rose to $173.6 million in 2024, up from $135.3 million in 2023, reflecting an increase of $38.4 million primarily due to higher program-related costs [622]. - General and administrative expenses increased to $40.8 million in 2024, compared to $34.8 million in 2023, driven by higher personnel and professional fees [626]. - The company expects to incur significant expenses related to developing its internal commercialization capability if any product candidates receive regulatory approval [593]. - The company anticipates significant increases in operating expenses related to research and development as it advances clinical trials and preclinical activities [634]. - The company expects research and development expenses to continue increasing as new clinical trials are initiated and ongoing trials progress [613]. Financing Activities - The company has entered into an ATM Sales Agreement allowing for the issuance and sale of up to $250 million of common stock, with approximately $228.6 million raised as of December 31, 2024 [589][590]. - A public offering in January 2024 raised approximately $151.1 million from the sale of 4,025,000 shares at a price of $40.00 per share [591]. - The company generated net cash provided by financing activities of $391.8 million for the year ended December 31, 2024, primarily from a public offering and sales under the ATM Program [643]. - The company has sold a total of 4,290,096 shares of common stock under the ATM Program for net proceeds of approximately $228.6 million during the year ended December 31, 2024 [633]. Risks and Uncertainties - Economic uncertainties, including inflation and rising interest rates, may adversely affect the company's operating results and financial position [598]. - The company is subject to risks that could affect its ability to access additional capital, which may impact its research and development programs [636]. Development and Licensing - The company is developing multiple product candidates, including elritercept for cytopenias and cibotercept for pulmonary arterial hypertension [586]. - The company has licensing agreements with Takeda and Hansoh, with potential milestone payments of up to $370 million and $144 million, respectively, based on development and sales achievements [608][603]. - Contractual obligations include milestone payments ranging from $50,000 to $10.0 million under the MGH Agreement, with royalties on sales ranging from low-single digits to mid-single digits [647]. - The company has deprioritized the KER-047 program, leading to changes in the reporting of related expenses [625]. Accounting and Estimates - Revenue recognition is based on ASC 606, with revenue recognized when customers obtain control of promised goods or services [653]. - The company estimates accrued research and development expenses based on known facts and circumstances, with no material adjustments to prior estimates reported [658]. - Stock-based compensation expense is recognized based on fair value, with the Black-Scholes option-pricing model used for valuation [659]. - The company has not entered into investments for trading or speculative purposes, focusing on capital preservation with short-term maturities [662]. - The company evaluates its estimates and assumptions on an ongoing basis, acknowledging that actual results may differ from these estimates [651]. - The company’s investment portfolio is conservative, and it does not expect a one percentage point change in interest rates to materially affect its operating results or cash flows [662].

Financial Performance - Keros reported a net loss of $46.0 million for Q4 2024, compared to a net loss of $40.2 million in Q4 2023, and a total net loss of $187.4 million for the year, up from $153.0 million in 2023 [4]. - Revenue for Q4 2024 was $3.0 million, significantly increasing from $0.1 million in Q4 2023, with total revenue for the year at $3.6 million compared to $0.2 million in 2023 [5]. - General and administrative expenses for Q4 2024 were $10.7 million, up from $9.1 million in Q4 2023, reflecting increased personnel and operational costs [7]. - The total operating expenses for 2024 were $214.4 million, compared to $170.1 million in 2023, driven by increased R&D and administrative costs [15]. Research and Development - Research and development expenses rose to $45.6 million in Q4 2024 from $37.5 million in Q4 2023, totaling $173.6 million for the year, up from $135.3 million in 2023 [6]. - The company expects to report initial data from the Phase 1 clinical trial of KER-065 in Q1 2025, with plans to advance into a Phase 2 trial focusing on Duchenne muscular dystrophy [2]. - Keros anticipates data from the Phase 2 TROPOS trial for cibotercept (KER-012) in patients with pulmonary arterial hypertension, which will inform future development strategies [2]. Cash and Assets - Keros' cash and cash equivalents increased to $559.9 million as of December 31, 2024, compared to $331.1 million at the end of 2023, bolstered by a $200 million upfront payment from Takeda Pharmaceuticals [9]. - Keros' total assets as of December 31, 2024, were $615.9 million, a significant increase from $370.0 million at the end of 2023 [17]. - The company plans to fund its operating expenses and capital requirements into 2029 based on current cash positions and the recent Takeda agreement [3].

Core Viewpoint - Keros Therapeutics, Inc. is advancing its clinical pipeline with promising data expected from ongoing trials, while also strengthening its financial position through a significant licensing agreement with Takeda Pharmaceuticals [1][2][3]. Financial Performance - Keros reported a net loss of $46.0 million for Q4 2024 and $187.4 million for the full year, compared to a net loss of $40.2 million and $153.0 million for the same periods in 2023, primarily due to increased R&D expenses [4]. - Total revenue for Q4 2024 was $3.0 million, up from $0.1 million in Q4 2023, and for the full year, revenue was $3.6 million compared to $0.2 million in 2023, largely driven by a milestone under a license agreement with Hansoh [5][13]. - Research and development expenses rose to $45.6 million for Q4 2024 and $173.6 million for the full year, compared to $37.5 million and $135.3 million in 2023, reflecting ongoing clinical trials and increased operational costs [6]. - General and administrative expenses increased to $10.7 million for Q4 2024 and $40.8 million for the full year, up from $9.1 million and $34.8 million in 2023, due to organizational growth and higher operational costs [7]. Cash Position - As of December 31, 2024, Keros had cash and cash equivalents of $559.9 million, an increase from $331.1 million in 2023, bolstered by a $200 million upfront payment from the Takeda Agreement, which is expected to fund operations into 2029 [8][3]. Clinical Development - Keros is focused on advancing its pipeline, with initial data from the Phase 1 trial of KER-065 expected in Q1 2025, targeting neuromuscular diseases, particularly Duchenne muscular dystrophy [2]. - The company anticipates reporting data from the Phase 2 TROPOS trial for cibotercept (KER-012) in patients with pulmonary arterial hypertension, with plans to evaluate its development strategy post-data readout [2]. Company Overview - Keros Therapeutics specializes in developing therapeutics targeting disorders linked to dysfunctional TGF-ß signaling, with a focus on conditions such as pulmonary arterial hypertension and neuromuscular diseases [9].