ADAR1 Sends Open Letter to Keros Board of Directors Urging the Board to Engage Constructively on Strategy, Capital Allocation and Board Refreshment
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.
ADAR1 Capital Management, il maggiore azionista di Keros Therapeutics (NASDAQ: KROS) con una partecipazione del 13,3%, ha pubblicato una lettera aperta al Consiglio di Amministrazione esprimendo frustrazione per il rifiuto di avviare un dialogo su strategia e governance.
La lettera contesta la mancanza di progressi rispetto all’annuncio del 9 giugno di restituire 375 milioni di dollari di capitale in eccesso agli azionisti e sollecita la distribuzione di un dividendo speciale. ADAR1 ritiene che Keros sia fortemente sottovalutata, mettendo in rilievo la posizione di cassa e la partnership con Takeda per elritercept come fattori chiave di valore.
ADAR1 avverte che, se il Consiglio continuerà a rifiutare il confronto, valuterà di promuovere nuove elezioni dei consiglieri nella prossima Assemblea Annuale, e mette in guardia contro cambiamenti strategici senza il coinvolgimento degli azionisti rilevanti.
ADAR1 Capital Management, el mayor accionista de Keros Therapeutics (NASDAQ: KROS) con una participación del 13,3%, ha enviado una carta abierta al Consejo de Administración expresando su frustración por la negativa a entablar conversaciones sobre estrategia y gobierno corporativo.
La carta critica la falta de avances respecto al anuncio del 9 de junio sobre la devolución de 375 millones de dólares de capital excedente a los accionistas y pide un dividendo especial. ADAR1 considera que Keros está significativamente infravalorada, citando el saldo de caja de la compañía y la alianza con Takeda por el elritercept como motores clave de valor.
ADAR1 amenaza con promover la elección de nuevos consejeros en la próxima Junta Anual si el Consejo sigue negándose a dialogar, y advierte en contra de realizar cambios estratégicos sin la participación de los principales accionistas.
ADAR1 Capital Management는 13.3%의 지분으로 Keros Therapeutics(NASDAQ: KROS)의 최대 주주이며, 이사회가 전략 및 거버넌스 논의에 응하지 않는 것에 대해 공개 서한을 통해 불만을 표명했습니다.
서한은 주주들에게 초과 자본 3억7,500만 달러를 환원하겠다는 6월 9일 발표가 진척되지 않고 있음을 비판하며 특별 배당을 촉구했습니다. ADAR1는 회사의 현금 잔액과 elritercept 관련 Takeda와의 파트너십을 핵심 가치 요인으로 들어 Keros가 크게 저평가되어 있다고 봅니다.
ADAR1는 이사회가 계속 소통을 거부할 경우 다음 연례 주주총회에서 새 이사 선임을 추진하겠다고 경고했으며, 주요 주주의 의견 없이 전략적 변화를 시도하는 것에 대해서도 우려를 표했습니다.
ADAR1 Capital Management, principal actionnaire de Keros Therapeutics (NASDAQ: KROS) avec une participation de 13,3%, a adressé une lettre ouverte au conseil d'administration pour exprimer sa frustration face au refus d'engager des discussions sur la stratégie et la gouvernance.
La lettre déplore l'absence de progrès suite à l'annonce du 9 juin visant à restituer 375 millions de dollars de capitaux excédentaires aux actionnaires et appelle au versement d'un dividende exceptionnel. ADAR1 estime que Keros est fortement sous-évaluée, en mettant en avant la trésorerie de la société et le partenariat avec Takeda sur l'elritercept comme principaux moteurs de valeur.
ADAR1 menace de solliciter le renouvellement des administrateurs lors de la prochaine assemblée générale si le conseil continue de refuser de s'engager, et met en garde contre toute modification stratégique sans la consultation des principaux actionnaires.
ADAR1 Capital Management, größter Aktionär von Keros Therapeutics (NASDAQ: KROS) mit einem Anteil von 13,3%, hat dem Vorstand in einem offenen Schreiben seinen Unmut darüber mitgeteilt, dass dieser sich weigert, Gespräche über Strategie und Unternehmensführung zu führen.
Das Schreiben kritisiert das Ausbleiben von Fortschritten hinsichtlich der Ankündigung vom 9. Juni, 375 Millionen US-Dollar überschüssiges Kapital an die Aktionäre zurückzugeben, und fordert eine Sonderdividende. ADAR1 ist der Ansicht, dass Keros deutlich unterbewertet ist, wobei die Barbestände und die Partnerschaft mit Takeda für elritercept als zentrale Werttreiber genannt werden.
ADAR1 droht, bei weiterer Verweigerung der Gesprächsbereitschaft bei der nächsten Hauptversammlung Neuwahlen des Vorstands zu verfolgen, und warnt davor, strategische Änderungen ohne Einbindung der Großaktionäre vorzunehmen.
- ADAR1 holds significant 13.3% ownership stake, showing strong investor interest
- Company has substantial cash balance and valuable Takeda partnership for elritercept
- Planned return of $375 million in excess capital to shareholders
- Board's refusal to engage with largest shareholder indicates governance concerns
- Lack of progress on promised capital return plan after two months
- Evidence of broad stockholder dissatisfaction in 2025 Annual Meeting results
- Significant stock undervaluation according to major shareholder
The full text of the letter is below.
Dear Members of the Board:
In July, we wrote to the Board privately to propose an in-person meeting to discuss our ideas to maximize stockholder value. We had hoped that the broad stockholder dissatisfaction evident in the results of the 2025 Annual Meeting would prompt the Board to adopt a more constructive and conciliatory approach to its engagement with investors.
Unfortunately, that hope was misplaced. Rather than welcoming the opportunity to engage with the Company's largest stockholder, Keros' management team and Board have repeatedly declined to interact with us directly and instead referred us to the Company's financial advisor.
As we have conveyed to you (and now to your financial advisor), we believe Keros is worth significantly more than the price at which its stock trades. Its valuation is supported, in our view, by the Company's large cash balance and the net present value of the Takeda partnership for elritercept, which we believe the Company should distribute to stockholders via CVR. Given the large and persistent undervaluation of the Company's stock, we would like to work collaboratively with the Board to unlock this value for all stockholders.
In furtherance of that goal, we reiterate our request to meet with the independent directors as soon as practicable. We are available to meet at the Company's headquarters in
Additionally, we are concerned by the lack of follow-through on the Company's June 9 announcement regarding the planned return of
Our strong preference is to work together with the Board to help reorient the Company's strategic direction into one that benefits all shareholders. However, should the Board continue to refuse our invitations to engage, we will seek to elect new directors at the next Annual Meeting – directors who will embrace their role as fiduciaries and are willing to at least hear the perspectives of stockholders. In the meantime, we caution the Board against making any changes to its composition or to the Company's strategy without first seeking input from its major stockholders, including ADAR1.
Keros has an opportunity to build significant long-term value for its investors, but doing so requires a Board that is willing to listen to and work constructively with its stockholders. We urge you to take this opportunity to engage with us in good faith.
Sincerely,
Daniel Schneeberger
ADAR1 Capital Management
About ADAR1 Capital Management
ADAR1 Capital Management is an SEC-registered investment manager based in
Contact:
info@adar1.com
512-254-3790
View original content:SOURCE ADAR1 Capital Management, LLC
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