Keros Therapeutics, Inc. Stock Price, News & Analysis

ADAR1 Capital Management, Keros Therapeutics' (NASDAQ: KROS) largest shareholder with a 13.3% stake, has issued an open letter to the company's Board expressing frustration over their refusal to engage in discussions about strategy and governance.

The letter criticizes the Board's lack of progress on their June 9 announcement to return $375 million in excess capital to shareholders and urges for a special dividend. ADAR1 believes Keros is significantly undervalued, citing the company's cash balance and the Takeda partnership for elritercept as key value drivers.

ADAR1 threatens to seek new director elections at the next Annual Meeting if the Board continues to refuse engagement, while warning against making strategic changes without major stockholder input.

Keros Therapeutics (Nasdaq: KROS) has received Orphan Drug designation from the FDA for KER-065, its investigational therapy for Duchenne muscular dystrophy (DMD). This milestone comes as the company prepares to advance KER-065 into Phase 2 clinical trials for DMD patients.

The Orphan Drug designation provides significant benefits, including tax credits for clinical testing, potential FDA fee waivers, and seven years of market exclusivity upon approval. This designation is granted to therapies targeting rare diseases affecting fewer than 200,000 people in the United States.

Keros Therapeutics (NASDAQ:KROS) announced a major strategic realignment to focus exclusively on advancing KER-065, their lead clinical program for Duchenne muscular dystrophy (DMD). The company is discontinuing development of cibotercept (KER-012), following its previously terminated Phase 2 TROPOS trial in pulmonary arterial hypertension.

Significant leadership changes include CEO Jasbir S. Seehra, Ph.D. assuming the additional role of President, while stepping down as Board Chair. Jean-Jacques Bienaimé has been appointed as the new Board Chair, and Lorena Lerner, Ph.D. has been promoted to Chief Scientific Officer. The company plans to initiate a Phase 2 clinical trial of KER-065 in DMD patients in Q1 2026, following positive Phase 1 results in healthy volunteers.

Keros Therapeutics (NASDAQ: KROS) reported its Q2 2025 financial results, marking significant developments following a comprehensive strategic review. The company posted a net loss of $30.7 million, an improvement from the $45.3 million loss in Q2 2024. Key financial metrics include R&D expenses of $43.5 million and cash position of $690.2 million.

The company plans to return $375 million to stockholders while maintaining sufficient capital to fund operations into first half of 2028. Keros is advancing its pipeline, particularly KER-065, with plans to initiate a Phase 2 trial for Duchenne muscular dystrophy in Q1 2026. The company's improved financial position was supported by revenue from its license agreement with Takeda Pharmaceuticals.

Keros Therapeutics (Nasdaq: KROS) has announced the first patient dosing in its Phase 3 RENEW clinical trial of elritercept, targeting adults with transfusion-dependent anemia in myelodysplastic syndromes (MDS). This milestone triggered a $10 million payment from Takeda under their global license agreement.

The agreement, effective since January 2025, included a $200 million upfront payment and potential milestone payments exceeding $1.1 billion. Keros maintains rights to receive tiered royalties on net sales, while Takeda holds commercialization rights worldwide except for mainland China, Hong Kong, and Macau.

ADAR1 Capital Management, Keros Therapeutics' (KROS) largest stockholder, criticizes the company's 2025 Annual Meeting results and capital return strategy. Directors Mary Ann Gray and Alpna Seth received significant opposition, with only 34% and 37% of shares voting for their election respectively. While ADAR1 acknowledges positive steps like discontinuing cibotercept development and reducing headcount, they argue these actions are insufficient. The activist investor demands Keros return $475M to shareholders via special dividend by Q3 2025, implement a contingent value right for Takeda partnership proceeds, and reduce costs more aggressively. ADAR1 threatens to nominate new directors at the 2026 Annual Meeting if the board maintains its current strategy.

Keros Therapeutics (NASDAQ: KROS) has concluded its strategic alternatives review and announced plans to return $375 million in excess capital to stockholders. The company's Board of Directors unanimously approved this decision while maintaining focus on developing KER-065, their lead product candidate for neuromuscular diseases, particularly Duchenne muscular dystrophy. The strategic review process, led by the Board with assistance from outside advisors, evaluated various options including company sale, business combinations, pipeline investment, and capital return. The specific terms and structure of the capital return will be announced at a later date. Lead Independent Director Jean-Jacques Bienaimé emphasized that this decision reflects careful consideration of capital requirements, stockholder feedback, and confidence in Keros's potential to deliver meaningful therapeutic benefits to patients.

Keros Therapeutics (NASDAQ: KROS), a clinical-stage biopharmaceutical company specializing in TGF-ß family protein signaling disorders, announced that CEO Jasbir S. Seehra will participate in a fireside chat at the Goldman Sachs 46th Annual Global Healthcare Conference. The presentation is scheduled for June 9, 2025, at 9:20 a.m. Eastern time. The event will be accessible via live audio webcast, with a replay available on the company's investor relations website for 90 days after the event.

Keros Therapeutics (NASDAQ: KROS) announced the discontinuation of its cibotercept (KER-012) development program for PAH following safety concerns in the Phase 2 TROPOS trial. The trial was halted after observing pericardial effusions at multiple dose levels. In response, the company announced a corporate restructuring that includes a 45% workforce reduction, leaving 85 full-time employees, expected to result in $17 million in annual cost savings. The Strategic Committee of the Board continues to evaluate strategic alternatives, including potential sale of the company, pipeline investment, or return of capital to stockholders. An update on this strategic review is expected by June 9, 2025.