Financial Data and Key Metrics Changes - The company reported a strategic review in Q2, resulting in a decision to return $375 million of capital to investors, indicating a focus on KER-065 and the preclinical pipeline [3][40] - As of the last earnings report, the company had $690 million in cash, which after the capital return leaves $315 million, providing a runway into the first half of 2028 [40] Business Line Data and Key Metrics Changes - The most advanced asset, KER-065, is being prioritized after deprioritizing Suborosev due to safety concerns [2][3] - KER-065 is positioned as a muscle bone anabolic with antifibrotic and anti-inflammatory properties, targeting Duchenne muscular dystrophy (DMD) [4][5] Market Data and Key Metrics Changes - The company has restructured to focus on delivering value, reducing its workforce to about half of what it was at the end of the previous year [3] - The market for KER-065 is primarily in muscular dystrophies, with potential expansion into other neuromuscular indications as resources allow [41][42] Company Strategy and Development Direction - The company is focusing on KER-065 as its primary clinical asset while exploring preclinical opportunities for future indications [2][41] - There is a strategic emphasis on sequencing trials rather than running multiple trials in parallel due to limited bandwidth [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the skepticism surrounding muscle mass-increasing agents in neuromuscular diseases but emphasized the unique properties of KER-065 that differentiate it from previous failures [8][11] - The company is preparing to submit documents to regulatory bodies for the next phase of trials, indicating a proactive approach to advancing KER-065 [38] Other Important Information - The company is considering a second indication for KER-065 but will prioritize DMD until sufficient resources are available [41] - The partnership with Takeda for elritercept (KER-050) remains a potential source of upside, with ongoing developments in myelofibrosis [49][50] Q&A Session Summary Question: What is the current status of KER-065 and its clinical trials? - Management discussed the focus on KER-065 and the need for an open-label trial to generate proof of concept data earlier [30][41] Question: How does the company plan to return excess capital to investors? - The company is exploring options for capital return, including dividends or share buybacks, and is engaging with advisors to determine the best approach [55] Question: What are the implications of the safety profile observed in KER-065? - Management noted that while there were increases in hemoglobin levels, they were small and manageable, with plans for dose titration to mitigate risks [16][20]

Core Viewpoint - ADAR1 Capital Management, the largest stockholder of Keros Therapeutics, expresses disappointment over the Board's refusal to engage on strategic matters and capital allocation [1][3]. Group 1: Engagement and Communication - ADAR1 previously reached out to Keros' Board to propose an in-person meeting aimed at maximizing stockholder value, especially in light of stockholder dissatisfaction from the 2025 Annual Meeting [2]. - The management team and Board of Keros have declined direct interaction with ADAR1, instead referring them to the Company's financial advisor [3]. Group 2: Valuation and Capital Allocation - ADAR1 believes Keros is undervalued and that its worth is supported by a large cash balance and the net present value of the Takeda partnership for elritercept, suggesting that this value should be distributed to stockholders via a Contingent Value Right (CVR) [4]. - There is concern regarding the lack of updates on the planned return of $375 million in excess capital, with shareholders waiting over two months for a clear plan, specifically urging for a special dividend declaration [6]. Group 3: Future Actions and Board Composition - ADAR1 prefers to collaborate with the Board to realign the Company's strategic direction but warns that if engagement continues to be refused, they will seek to elect new directors at the next Annual Meeting who are willing to listen to stockholder perspectives [7]. - The Company has the potential to create significant long-term value for investors, contingent upon a Board that is open to constructive engagement with stockholders [8].

Core Viewpoint - Keros Therapeutics has received Orphan Drug designation from the FDA for KER-065, aimed at treating Duchenne muscular dystrophy (DMD), highlighting the significant unmet medical need in this area [1][2]. Company Overview - Keros Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel therapeutics targeting disorders linked to dysfunctional signaling of the TGF-ß protein family [5]. - The company is recognized for its expertise in the TGF-ß family of proteins, which are crucial for the growth, repair, and maintenance of various tissues, including blood, bone, skeletal muscle, adipose, and heart tissue [5]. Product Information - KER-065 is a novel ligand trap designed to inhibit the biological effects of myostatin and activin A, promoting skeletal muscle regeneration, increasing muscle size and strength, reducing body fat, and enhancing bone strength [3]. - The product is initially focused on treating DMD, a severe condition characterized by muscle degeneration due to the lack of functional dystrophin protein [4]. Disease Context - Duchenne muscular dystrophy (DMD) is the most common form of muscular dystrophy, leading to muscle degeneration and premature death, affecting approximately one in every 3,500 male births worldwide [4]. - The absence of dystrophin results in increased susceptibility of muscle cells to damage, progressive muscle cell death, and replacement with fibrotic and fatty tissue, ultimately causing loss of muscle strength and function [4]. Regulatory Milestone - The Orphan Drug designation provides Keros with several benefits, including tax credits for clinical testing, waivers or reductions in FDA application fees, and seven years of market exclusivity upon approval [2].

Company Performance - Keros Therapeutics reported a quarterly loss of $0.76 per share, which was better than the Zacks Consensus Estimate of a loss of $1.14, and an improvement from a loss of $1.25 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $18.17 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 135.95%, compared to revenues of $0.04 million in the same quarter last year [2] - Over the last four quarters, Keros Therapeutics has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Keros Therapeutics shares have declined approximately 9.1% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.08 on revenues of $4.37 million, and for the current fiscal year, it is $0.21 on revenues of $219 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Keros Therapeutics belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Keros Therapeutics may be influenced by the overall outlook of the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Core Viewpoint - Keros Therapeutics is discontinuing the development of cibotercept to focus on its key clinical program, KER-065, which is aimed at treating Duchenne muscular dystrophy (DMD) [1][2][4] Strategic Realignment - The company will cease all internal development activities related to cibotercept following the termination of its development in pulmonary arterial hypertension (PAH) due to safety and efficacy data from the TROPOS Phase 2 clinical trial [2] - Keros is reallocating resources to enhance the development of KER-065, which has shown promising results in initial clinical trials [1][4] Leadership Changes - Keros announced several transitions in its Board of Directors and leadership to support its streamlined operational structure [3][5] - Jasbir S. Seehra, Ph.D., will take on the additional role of President while stepping down as Chair of the Board, with Jean-Jacques Bienaimé appointed as the new Chair [5] - Christopher Rovaldi will leave the company, and Lorena Lerner, Ph.D., will be promoted to Chief Scientific Officer [5] Clinical Development Plans - Keros plans to initiate a Phase 2 clinical trial for KER-065 in patients with DMD in the first quarter of 2026, pending positive regulatory interactions [4] - The company has reported initial topline results from the Phase 1 clinical trial of KER-065, achieving key objectives related to safety, tolerability, pharmacokinetics, and pharmacodynamics [4] Financial Results - Keros has released its financial results for the second quarter ended June 30, 2025, which can be accessed on its website [6]

Special Note Regarding Forward-Looking Statements [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) The report contains forward-looking statements involving risks and uncertainties, and actual results may differ materially - The report contains forward-looking statements, which are not historical facts and involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[12](index=12&type=chunk)[14](index=14&type=chunk) - Investors are cautioned not to unduly rely on these statements, and the company does not plan to publicly update or revise them, except as required by applicable law[13](index=13&type=chunk)[14](index=14&type=chunk) - Key forward-looking statements include timing of regulatory engagement and Phase 2 clinical trial initiation for KER-065 in Duchenne muscular dystrophy - Risks associated with public health crises impacting business, preclinical studies, and clinical trials - Ability to receive required regulatory approvals and successfully market products - Ability to obtain funding, sufficiency of capital resources, and ability to establish and maintain collaborations - Ability to protect intellectual property rights and operate without infringing third-party rights - Statements regarding future revenue, hiring plans, expenses, capital expenditures, and stock performance[15](index=15&type=chunk) Special Note Regarding Company References [Company References Definition](index=6&type=section&id=Company%20References%20Definition) Terms like 'Keros,' 'the Company,' 'we,' 'us,' and 'our' refer to Keros Therapeutics, Inc. and its subsidiaries - The terms 'Keros,' 'the Company,' 'we,' 'us,' and 'our' refer to Keros Therapeutics, Inc. and its subsidiaries[18](index=18&type=chunk) Special Note Regarding Trademarks [Trademarks Ownership](index=6&type=section&id=Trademarks%20Ownership) All trademarks, trade names, and service marks in this report are the property of their respective owners - All trademarks, trade names, and service marks in this report are the property of their respective owners[20](index=20&type=chunk) Summary of Selected Risks Associated with Our Business [Key Business Risks](index=7&type=section&id=Key%20Business%20Risks) The company faces significant risks including limited operating history, funding needs, product dependence, competition, and IP challenges - Limited operating history and recurring net losses since inception, with anticipated future losses - Need for substantial additional funding to complete development and commercialization; failure to obtain capital may force delays or elimination of programs - Heavy dependence on the success of product candidates (KER-065, elritercept) in clinical development; inability to advance, obtain approval, or commercialize will materially harm the business - Clinical trials are lengthy, expensive, and have uncertain outcomes, potentially leading to delays or inability to complete development - Significant competition from other biotechnology and pharmaceutical companies - Challenges in protecting intellectual property rights - Reliance on third parties for preclinical studies, clinical trials, and manufacturing - Dependence on collaborations with Takeda and Hansoh for elritercept commercialization - Public health crises could adversely impact business and clinical trials[22](index=22&type=chunk) Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Operations, Stockholders' Equity, and Cash Flows, for Keros Therapeutics, Inc [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) - Cash and cash equivalents increased by **$130.28 million (23.27%)** from **$559.93 million** at December 31, 2024, to **$690.22 million** at June 30, 2025[25](index=25&type=chunk) - Accounts receivable significantly increased by **$13.07 million (476.66%)** from **$2.74 million** to **$15.82 million**, primarily due to the Takeda Agreement[25](index=25&type=chunk) - Total assets increased by **$141.28 million (22.94%)** from **$615.89 million** to **$757.17 million**[25](index=25&type=chunk) - Total stockholders' equity increased by **$135.18 million (23.65%)** from **$571.55 million** to **$706.73 million**[25](index=25&type=chunk) Financial Assets (in thousands) | ASSETS (in thousands) | JUNE 30, 2025 | DECEMBER 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $690,215 | $559,931 | | Accounts receivable | $15,816 | $2,742 | | Total current assets | $732,808 | $588,893 | | TOTAL ASSETS | $757,165 | $615,886 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | JUNE 30, 2025 | DECEMBER 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accounts payable | $5,267 | $4,602 | | Total current liabilities | $34,707 | $27,450 | | Total liabilities | $50,431 | $44,333 | | Total stockholders' equity | $706,734 | $571,553 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $757,165 | $615,886 | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) - Total revenue for the six months ended June 30, 2025, significantly increased to **$229.41 million** from **$0.12 million** in the prior year, primarily due to **$195.36 million** in license revenue from the Takeda Agreement[28](index=28&type=chunk)[150](index=150&type=chunk) - Net income for the six months ended June 30, 2025, was **$117.76 million**, a substantial improvement from a net loss of **$88.37 million** in the same period of 2024, driven by the Takeda Agreement[28](index=28&type=chunk)[151](index=151&type=chunk) - Research and development expenses increased by **$13.44 million (17.06%)** for the six months ended June 30, 2025, to **$92.21 million**, mainly due to increased elritercept-related clinical and manufacturing activities[28](index=28&type=chunk)[152](index=152&type=chunk) - General and administrative expenses increased by **$4.71 million (23.24%)** for the six months ended June 30, 2025, to **$24.98 million**, primarily due to professional fees and other operational support[28](index=28&type=chunk)[154](index=154&type=chunk) - Diluted EPS for the six months ended June 30, 2025, was **$2.86**, compared to **$(2.46)** in the prior year[28](index=28&type=chunk) Financial Performance (in thousands, except per share data) | (in thousands, except per share data) | THREE MONTHS ENDED JUNE 30, 2025 | THREE MONTHS ENDED JUNE 30, 2024 | SIX MONTHS ENDED JUNE 30, 2025 | SIX MONTHS ENDED JUNE 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service and other revenue | $18,168 | $37 | $34,059 | $120 | | License revenue | $— | $— | $195,355 | $— | | Total revenue | $18,168 | $37 | $229,414 | $120 | | Research and development | $(43,503) | $(40,515) | $(92,212) | $(78,773) | | General and administrative | $(14,482) | $(9,961) | $(24,979) | $(20,269) | | Total operating expenses | $(57,985) | $(50,476) | $(117,191) | $(99,042) | | Net income (loss) | $(30,696) | $(45,257) | $117,755 | $(88,371) | | Net income (loss) per share — basic | $(0.76) | $(1.25) | $2.90 | $(2.46) | | Net income (loss) per share — diluted | $(0.76) | $(1.25) | $2.86 | $(2.46) | [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) - Total stockholders' equity increased by **$135.18 million** from **$571.55 million** at December 31, 2024, to **$706.73 million** at June 30, 2025[31](index=31&type=chunk) - The accumulated deficit decreased by **$117.76 million**, from **$(568.78) million** to **$(451.02) million**, primarily due to net income for the six months ended June 30, 2025[31](index=31&type=chunk)[115](index=115&type=chunk)

[Second Quarter 2025 Financial Results and Business Update](index=1&type=section&id=Keros%20Therapeutics%20Reports%20Second%20Quarter%202025%20Financial%20Results) Keros Therapeutics reported Q2 2025 financial results, outlining strategic pipeline advancements, financial performance, and liquidity position [Company Highlights and Strategic Direction](index=1&type=section&id=Company%20Highlights%20and%20Strategic%20Direction) Keros Therapeutics announced Q2 2025 financial results after a strategic review, reaffirming focus on pipeline advancement with KER-065 progressing to Phase 2 for Duchenne muscular dystrophy in Q1 2026 - Keros' Board completed a comprehensive strategic review, reaffirming focus on creating **long-term value** through pipeline advancement[2](index=2&type=chunk) - The lead asset, KER-065, is progressing towards initiation of a **Phase 2 clinical trial** in patients with Duchenne muscular dystrophy in the first quarter of 2026[2](index=2&type=chunk) [Financial Performance Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Keros reported a net loss of $30.7 million in Q2 2025, a $14.6 million decrease from Q2 2024, primarily due to Takeda license revenue partially offset by increased R&D and G&A expenses Second Quarter Financial Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :---------------------- | :------ | :------ | :------- | | Net Loss | $(30.7) | $(45.3) | $(14.6) decrease | | Research and development expenses | $43.5 | $40.5 | $3.0 increase | | General and administrative expenses | $14.5 | $10.0 | $4.5 increase | - The decrease in net loss was largely due to **revenue recognized** related to Keros' license agreement with Takeda Pharmaceuticals U.S.A., Inc[3](index=3&type=chunk) - Increased research and development efforts and additional investments to support clinical and corporate goals partially offset the net loss improvement[3](index=3&type=chunk)[4](index=4&type=chunk) [Liquidity and Capital Resources](index=1&type=section&id=Liquidity%20and%20Capital%20Resources) Keros' cash and cash equivalents significantly increased to $690.2 million by June 30, 2025, with a projected cash runway into the first half of 2028, even after returning $375.0 million to stockholders Cash and Cash Equivalents (in millions) | Metric | June 30, 2025 | December 31, 2024 | Change | | :----------------------- | :------------ | :---------------- | :------- | | Cash and cash equivalents | $690.2 | $559.9 | $130.3 increase | - Keros expects to return **$375.0 million** of excess capital to stockholders[5](index=5&type=chunk) - Based on current operating assumptions, Keros expects its cash and cash equivalents to fund operating expenses and capital expenditure requirements into the **first half of 2028**[5](index=5&type=chunk) [Company Profile](index=1&type=section&id=About%20Keros%20Therapeutics%2C%20Inc.) Keros Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for TGF-ß family protein signaling disorders [Business Overview and Pipeline](index=1&type=section&id=Business%20Overview%20and%20Pipeline) Keros Therapeutics is a clinical-stage biopharmaceutical company developing novel therapeutics for TGF-ß family protein signaling disorders, with lead candidates KER-065 for neuromuscular diseases and elritercept for cytopenias - Keros is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics for disorders linked to dysfunctional **TGF-ß family protein signaling**[6](index=6&type=chunk) - Keros' lead product candidate, **KER-065**, is being developed for the treatment of neuromuscular diseases, with an initial focus on Duchenne muscular dystrophy[6](index=6&type=chunk) - Keros' most advanced product candidate, **elritercept**, is being developed for the treatment of cytopenias in patients with myelodysplastic syndrome and myelofibrosis[6](index=6&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents Keros Therapeutics' condensed consolidated statements of operations and balance sheets for recent periods [Statements of Operations](index=3&type=section&id=KEROS%20THERAPEUTICS%2C%20INC.%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Keros reported $18.168 million in revenue and a $30.696 million net loss, while the six months ended June 30, 2025, saw $229.414 million in revenue and a $117.755 million net income, driven by license revenue Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Total revenue | 18,168 | 37 | 229,414 | 120 | | Research and development | (43,503) | (40,515) | (92,212) | (78,773) | | General and administrative | (14,482) | (9,961) | (24,979) | (20,269) | | Net income (loss) | (30,696) | (45,257) | 117,755 | (88,371) | | Net income (loss) per share — basic | (0.76) | (1.25) | 2.90 | (2.46) | | Net income (loss) per share — diluted | (0.76) | (1.25) | 2.86 | (2.46) | - License revenue of **$195,355 thousand** was a key contributor to the net income for the six months ended June 30, 2025[12](index=12&type=chunk) - Operating expenses, including R&D and G&A, increased year-over-year for both the three-month and six-month periods, reflecting ongoing development and operational investments[12](index=12&type=chunk) [Balance Sheets](index=4&type=section&id=KEROS%20THERAPEUTICS%2C%20INC.%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Keros' total assets increased to $757.165 million, and total stockholders' equity rose to $706.734 million, primarily due to higher cash and receivables Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | 690,215 | 559,931 | | Accounts receivable | 15,816 | 2,742 | | Total current assets | 732,808 | 588,893 | | Total assets | 757,165 | 615,886 | | Total current liabilities | 34,707 | 27,450 | | Total liabilities | 50,431 | 44,333 | | Total stockholders' equity | 706,734 | 571,553 | - The accumulated deficit decreased from **$(568,779) thousand** at December 31, 2024, to **$(451,024) thousand** at June 30, 2025, indicating a positive shift in retained earnings due to the six-month period's net income[14](index=14&type=chunk) - Deferred revenue of **$925 thousand** was reported as a current liability as of June 30, 2025, compared to none at December 31, 2024[14](index=14&type=chunk) [Legal Disclosures and Contacts](index=1&type=section&id=Legal%20Disclosures%20and%20Contacts) This section provides cautionary notes on forward-looking statements and essential company contact information [Cautionary Note Regarding Forward-Looking Statements](index=1&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a standard disclaimer for forward-looking statements, noting that actual results may differ due to risks such as limited operating history, funding needs, product candidate dependence, clinical trial delays, competition, and reliance on third parties - Statements regarding matters that are not historical facts are 'forward-looking statements' subject to risks and uncertainties, meaning actual results may differ materially[8](index=8&type=chunk) - Identified risks include Keros' limited operating history, ability to raise additional funding, dependence on product candidates, potential delays in clinical trials, competition, intellectual property, and reliance on third parties[8](index=8&type=chunk) - Keros undertakes no obligation to update such statements to reflect events or circumstances after the date on which they were made, except as required by law[9](index=9&type=chunk) [Company Contacts](index=2&type=section&id=Contacts) This section provides contact information for investor relations and media inquiries for Keros Therapeutics - Investor Contact: **Justin Frantz**, jfrantz@kerostx.com, **617-221-6042**[10](index=10&type=chunk) - Media Contact: **Mahmoud Siddig / Adam Pollack / Viveca Tress**, Joele Frank, Wilkinson Brimmer Katcher, **212-355-4449**[10](index=10&type=chunk)

Core Insights - Keros Therapeutics, Inc. reported a net loss of $30.7 million for Q2 2025, a decrease from a net loss of $45.3 million in Q2 2024, primarily due to revenue from a license agreement with Takeda Pharmaceuticals [3][4] - The company is focusing on advancing its pipeline, particularly KER-065, which is set to enter a Phase 2 clinical trial for Duchenne muscular dystrophy in Q1 2026 [2][6] - Keros' cash and cash equivalents increased to $690.2 million as of June 30, 2025, compared to $559.9 million at the end of 2024, allowing for operational funding into the first half of 2028 [5][12] Financial Performance - Total revenue for Q2 2025 was $18.2 million, compared to $37,000 in Q2 2024, with a significant portion attributed to service and other revenue [10] - Research and development expenses rose to $43.5 million in Q2 2025 from $40.5 million in Q2 2024, reflecting increased R&D efforts [4][10] - General and administrative expenses increased to $14.5 million in Q2 2025 from $10.0 million in Q2 2024, mainly due to higher external expenses [4][10] Balance Sheet Highlights - Keros' total assets as of June 30, 2025, were $757.2 million, up from $615.9 million at the end of 2024 [12][13] - The company reported total liabilities of $50.4 million as of June 30, 2025, compared to $44.3 million at the end of 2024 [12][13] - Stockholders' equity increased to $706.7 million as of June 30, 2025, from $571.6 million at the end of 2024, driven by a reduction in accumulated deficit [13]

Core Viewpoint - Keros Therapeutics, Inc. (KROS) is currently more attractive to value investors compared to Exact Sciences (EXAS) based on various valuation metrics and analyst outlooks [1][3]. Valuation Metrics - KROS has a forward P/E ratio of 70.11, significantly lower than EXAS's forward P/E of 303.06 [5]. - The PEG ratio for KROS is 2.62, while EXAS has a much higher PEG ratio of 10.35, indicating KROS may be undervalued relative to its expected earnings growth [5]. - KROS's P/B ratio stands at 0.81, compared to EXAS's P/B of 3.82, further suggesting KROS is more favorably valued [6]. Analyst Ratings - KROS holds a Zacks Rank of 1 (Strong Buy), while EXAS has a Zacks Rank of 2 (Buy), indicating a stronger earnings estimate revision activity for KROS [3][7]. - The Value grade for KROS is B, whereas EXAS has a Value grade of C, reflecting KROS's superior valuation metrics [6].

Core Points - Keros Therapeutics announced the dosing of the first patient in the Phase 3 RENEW clinical trial for elritercept, which triggers a $10 million milestone payment from Takeda under their global license agreement [1][2] - The global license agreement with Takeda, effective January 16, 2025, includes a $200 million upfront cash payment and potential milestones exceeding $1.1 billion, along with tiered royalties on net sales [2] Company Overview - Keros Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapeutics for disorders linked to dysfunctional signaling of the TGF-ß protein family [5] - The company is recognized for its understanding of TGF-ß proteins, which regulate growth and maintenance of various tissues, and is developing protein therapeutics aimed at providing disease-modifying benefits [5] - Keros' lead product candidate, KER-065, targets neuromuscular diseases, while elritercept (KER-050) is focused on treating cytopenias, including anemia and thrombocytopenia in patients with myelodysplastic syndromes and myelofibrosis [5] Clinical Trial Details - The Phase 3 RENEW clinical trial is a global, randomized, double-blind, placebo-controlled study aimed at evaluating the efficacy of elritercept in reducing red blood cell transfusions in adults with transfusion-dependent anemia and varying risk levels of MDS [3]