Keros Reinforces Commitment to Maximizing Stockholder Value
Keros Therapeutics (NASDAQ: KROS) has responded to ADAR1 Capital Management's recent communications regarding the upcoming 2025 Annual Meeting. The company's Board announced it is conducting a strategic review process through an independent committee to evaluate options including a potential sale, continued pipeline investment, or return of capital to shareholders. The review follows a significant $200 million upfront payment from a licensing deal with Takeda, which could yield up to $1.1 billion in additional milestones plus royalties.
ADAR1 has opposed the re-election of two independent directors unless their CIO is added to the Board, pushing for immediate capital return to shareholders. Keros's Board, comprising nine directors (eight independent), recommends shareholders vote "FOR" its three director nominees at the June 4, 2025 Annual Meeting. The company highlights its strong cash position, funding operations into 2029.
Keros Therapeutics (NASDAQ: KROS) ha risposto alle recenti comunicazioni di ADAR1 Capital Management riguardanti la prossima Assemblea Annuale del 2025. Il Consiglio di Amministrazione dell'azienda ha annunciato di aver avviato un processo di revisione strategica tramite un comitato indipendente per valutare opzioni che includono una possibile vendita, il continuo investimento nel portafoglio prodotti o la restituzione di capitale agli azionisti. La revisione segue un significativo pagamento anticipato di 200 milioni di dollari derivante da un accordo di licenza con Takeda, che potrebbe generare fino a 1,1 miliardi di dollari in ulteriori milestone più royalties.
ADAR1 si è opposta alla rielezione di due amministratori indipendenti a meno che il loro CIO non venga aggiunto al Consiglio, spingendo per un immediato ritorno di capitale agli azionisti. Il Consiglio di Keros, composto da nove membri (otto indipendenti), raccomanda agli azionisti di votare "A FAVORE" dei tre candidati al Consiglio durante l'Assemblea Annuale del 4 giugno 2025. L'azienda sottolinea la sua solida posizione di cassa, che finanzierà le operazioni fino al 2029.
Keros Therapeutics (NASDAQ: KROS) ha respondido a las recientes comunicaciones de ADAR1 Capital Management respecto a la próxima Junta Anual de 2025. La Junta Directiva de la compañía anunció que está llevando a cabo un proceso de revisión estratégica a través de un comité independiente para evaluar opciones que incluyen una posible venta, la continuación de la inversión en la cartera de productos o la devolución de capital a los accionistas. La revisión sigue a un significativo pago inicial de 200 millones de dólares proveniente de un acuerdo de licencia con Takeda, que podría generar hasta 1.100 millones de dólares adicionales en hitos más regalías.
ADAR1 se ha opuesto a la reelección de dos directores independientes a menos que su CIO sea añadido a la Junta, presionando por una devolución inmediata de capital a los accionistas. La Junta de Keros, compuesta por nueve directores (ocho independientes), recomienda a los accionistas votar "A FAVOR" de sus tres nominados para el directorio en la Junta Anual del 4 de junio de 2025. La compañía destaca su fuerte posición de efectivo, que financiará las operaciones hasta 2029.
Keros Therapeutics (NASDAQ: KROS)는 다가오는 2025년 연례 주주총회와 관련된 ADAR1 Capital Management의 최근 소통에 대해 답변했습니다. 회사 이사회는 독립 위원회를 통해 전략적 검토 과정을 진행 중이며, 잠재적 매각, 파이프라인 지속 투자, 또는 주주에게 자본 환원 등의 옵션을 평가하고 있습니다. 이번 검토는 Takeda와의 라이선스 계약에서 받은 2억 달러 선불금에 따른 것으로, 추가로 11억 달러에 달하는 마일스톤 및 로열티를 받을 수 있습니다.
ADAR1는 CIO가 이사회에 합류하지 않으면 두 명의 독립 이사 재선임에 반대하며, 즉각적인 자본 환원을 요구하고 있습니다. Keros 이사회는 9명의 이사(8명 독립 이사)로 구성되어 있으며, 2025년 6월 4일 연례 주주총회에서 세 명의 이사 후보에 대해 "찬성" 투표를 권고합니다. 회사는 2029년까지 운영 자금을 확보한 탄탄한 현금 보유고를 강조하고 있습니다.
Keros Therapeutics (NASDAQ : KROS) a répondu aux récentes communications d’ADAR1 Capital Management concernant la prochaine Assemblée Générale Annuelle de 2025. Le Conseil d’Administration de la société a annoncé qu’il mène un processus d’examen stratégique via un comité indépendant afin d’évaluer des options telles qu’une éventuelle vente, la poursuite des investissements dans le portefeuille de produits ou le retour de capital aux actionnaires. Cet examen fait suite à un paiement initial important de 200 millions de dollars issu d’un accord de licence avec Takeda, qui pourrait générer jusqu’à 1,1 milliard de dollars supplémentaires en jalons et redevances.
ADAR1 s’oppose à la réélection de deux administrateurs indépendants à moins que leur CIO ne soit ajouté au Conseil, réclamant un retour immédiat de capital aux actionnaires. Le Conseil de Keros, composé de neuf administrateurs (huit indépendants), recommande aux actionnaires de voter « POUR » ses trois candidats au Conseil lors de l’Assemblée Générale du 4 juin 2025. La société souligne sa solide position de trésorerie, assurant le financement des opérations jusqu’en 2029.
Keros Therapeutics (NASDAQ: KROS) hat auf die jüngsten Mitteilungen von ADAR1 Capital Management bezüglich der bevorstehenden Hauptversammlung 2025 reagiert. Der Vorstand des Unternehmens gab bekannt, dass ein strategischer Überprüfungsprozess durch ein unabhängiges Komitee durchgeführt wird, um Optionen wie einen möglichen Verkauf, die weitere Investition in die Pipeline oder die Kapitalrückführung an die Aktionäre zu prüfen. Die Überprüfung folgt auf eine bedeutende Vorauszahlung von 200 Millionen US-Dollar aus einem Lizenzvertrag mit Takeda, der bis zu 1,1 Milliarden US-Dollar an zusätzlichen Meilensteinen zuzüglich Lizenzgebühren bringen könnte.
ADAR1 lehnt die Wiederwahl von zwei unabhängigen Direktoren ab, sofern ihr CIO nicht in den Vorstand aufgenommen wird, und drängt auf eine sofortige Kapitalrückführung an die Aktionäre. Der Vorstand von Keros, bestehend aus neun Direktoren (acht unabhängig), empfiehlt den Aktionären, bei der Hauptversammlung am 4. Juni 2025 für die drei vorgeschlagenen Direktoren zu stimmen. Das Unternehmen hebt seine starke Liquiditätsposition hervor, die den Betrieb bis 2029 sichert.
- Secured $200 million upfront payment from Takeda licensing deal with potential for $1.1 billion in additional milestones
- Strong cash position funding operations into 2029
- Strategic review process initiated to maximize shareholder value
- Eight out of nine board members are independent directors
- Ongoing conflict with ADAR1 Capital Management could create business disruption
- Strategic review process may delay immediate return of capital to shareholders
Insights
Keros faces activist pressure from ADAR1 while conducting strategic review; strong financial position with Takeda deal provides negotiating leverage.
This press release unveils a pivotal strategic crossroads for Keros Therapeutics. The board has launched a formal strategic alternatives review considering multiple paths: company sale, business combination, continued pipeline investment, or returning capital to shareholders. This isn't merely window dressing – the board has established a dedicated committee of independent directors and engaged external advisors.
Two financial strengths significantly bolster Keros' strategic positioning: a runway extending into 2029 and their Takeda partnership worth $200 million upfront with potential for $1.1 billion in additional milestones plus royalties. This creates substantial optionality for the company's direction.
The fundamental tension centers on time horizons. ADAR1 appears to favor immediate capital distribution, challenging the reelection of two directors unless their CIO joins the board. Meanwhile, current leadership advocates methodical evaluation of long-term value-creation opportunities.
This represents the classic biotech dilemma: harvest value now or continue development? The Takeda partnership demonstrates Keros' ability to execute transformative deals providing both immediate capital and long-term value potential. The strategic review acknowledges multiple viable paths forward, suggesting genuine openness to all value-maximizing alternatives rather than predetermined outcomes.
Classic activist investor scenario with ADAR1 pushing for immediate capital return versus board's methodical strategic review; June vote becomes pivotal.
This situation exemplifies the growing influence of activist investors in biotech governance. ADAR1 Capital has launched an opposition campaign threatening two independent directors' reelection unless their CIO secures board representation – a direct attempt to influence capital allocation strategy.
Noteworthy is Keros' existing board composition: nine directors (eight independent) including four stockholder representatives, with two from Pontifax (second-largest shareholder). This already provides substantial investor perspective in the boardroom.
ADAR1's timing is strategic – initiating this campaign during an ongoing comprehensive strategic review suggests an attempt to shortcut the process toward immediate capital returns rather than allowing methodical evaluation of all alternatives including potential sale, business combinations, or continued pipeline investment.
The June 4th shareholder vote now functions as a referendum on strategic patience versus immediate returns. This governance conflict illustrates the fundamental challenge in biotech: balancing thorough strategic evaluation against responsive capital allocation, particularly for companies with substantial cash positions funding operations into 2029.
This represents a philosophical governance divergence rather than evidence of operational underperformance. The outcome will significantly influence how Keros deploys its capital and evaluates strategic options going forward.
Responds to Recent Public Stockholder Communications
Urges Stockholders to Protect Their Investment by Voting “FOR” the Company’s Highly Qualified Director Nominees
LEXINGTON, Mass., May 08, 2025 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. (“Keros”, the “Company” or “we”) (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 issued the following statement in response to the misleading press release issued by ADAR1 Capital Management (“ADAR1”) regarding Keros’ upcoming 2025 Annual Meeting of Stockholders (the “2025 Annual Meeting”), currently scheduled for June 4, 2025:
The Board is committed to acting in the best interests of the Company and all of its stockholders. In line with this commitment, Keros values the views of its stockholders and has a proactive engagement program in place to ensure that their perspectives are incorporated into the Board’s decision-making process. To that end, feedback gathered from stockholders – including ADAR1 – was considered as the Board determined to undertake a formal review process to evaluate strategic alternatives to maximize stockholder value, led by a strategic committee consisting of independent and disinterested directors (the “Strategic Committee”), as previously announced on April 10, 2025.
The Strategic Committee, with the assistance of outside financial and legal advisors, intends to consider a comprehensive range of strategic alternatives, including but not limited to a sale of the Company or other business combination transaction, continued investment in the Company’s pipeline, and/or return of excess capital to stockholders.
While the Board evaluates strategic alternatives, Keros’ directors remain highly engaged in developing and overseeing the execution of the Company’s strategy to enhance value for stockholders. Recent strategic initiatives have reinforced our strong cash position and enabled us to fund our clinical programs and operations into 2029 as we continue to develop differentiated product candidates. For example, our exclusive license agreement with Takeda Pharmaceuticals U.S.A., Inc., which secured a
Against this backdrop, in the weeks leading up to its press release today, ADAR1 has embarked on an aggressive campaign aimed at forcing the Board to immediately return capital to stockholders instead of properly evaluating strategic alternatives through the Board’s ongoing strategic review process. After a number of private and public threats, most recently ADAR1 notified Keros that it would publicly oppose the re-election of Mary Ann Gray, Ph.D and Alpna Seth, Ph.D, two highly qualified and experienced independent directors, if the Board did not add Daniel Schneeberger, Chief Investment Officer of ADAR1, to the Board.
Ultimately, ADAR1’s self-serving campaign threatens to distract focus at this critical time from the Board’s top priority – completing its review of strategic alternatives to maximize value for all stockholders.
The Keros Board comprises nine directors, all of whom are independent except for the Company’s CEO. This includes four representatives of Keros stockholders, two of whom are representatives of Pontifax, the Company’s second largest stockholder. Collectively, the Board represents diverse perspectives and brings significant experience across the biotechnology industry, including drug development and commercialization, capital allocation and business development. The Board’s Nominating and Corporate Governance Committee regularly considers Board composition in the context of the Company’s evolving business needs and will continue to seek out directors with complementary skillsets which enhance the Board’s ability to oversee the continued execution of the Company’s strategy to maximize stockholder value.
The Board of Directors continues to recommend stockholders vote “FOR” its three director nominees, Mary Ann Gray, Ph.D, Ran Nussbaum and Alpna Seth, Ph.D, at the upcoming 2025 Annual Meeting, which is scheduled to be held on Wednesday, June 4, 2025, at 9:00 a.m. Eastern time.
Goldman Sachs & Co. LLC is serving as Keros’ financial advisor, and Cooley LLP is serving as legal counsel.
About Keros Therapeutics, Inc.
Keros is 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 TGF-ß family of proteins. Keros is a leader in understanding the role of the TGF-ß family of proteins, which are master regulators of the growth, repair and maintenance of a number of tissues, including blood, bone, skeletal muscle, adipose and heart tissue. By leveraging this understanding, Keros has discovered and is developing protein therapeutics that have the potential to provide meaningful and potentially disease-modifying benefit to patients. One of Keros’ product candidates, cibotercept (KER-012), is being developed for the treatment of pulmonary arterial hypertension and for the treatment of cardiovascular disorders. Keros’ second product candidate, KER-065, is being developed for the treatment of neuromuscular diseases. Keros’ most advanced product candidate, elritercept (KER-050), is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndrome and in patients with myelofibrosis.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “anticipates,” “believes,” “continue,” “expects,” “enable,” “potential” and “will” or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include statements concerning the intended benefits and outcome of the strategic review process, expected cash runway, our continued collaboration with Takeda Pharmaceuticals. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: whether the objectives of the strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any transaction and whether any transaction will be consummated at all; the risk that the strategic alternatives review and its announcement could have an adverse effect on the ability of the Company to retain and hire key personnel and maintain relationships with partners, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; the risk the strategic alternatives review could divert the attention and time of the Company’s management; the risk of any unexpected costs or expenses resulting from the review; the risk of any litigation relating to the review; the risk that circumstances surrounding or leading up to our 2025 Annual Meeting may change; Keros’ limited operating history and historical losses; Keros’ ability to raise additional funding to complete the development and any commercialization of its product candidates; Keros’ dependence on the success of its product candidates, cibotercept, KER-065 and elritercept; that Keros may be delayed in initiating, enrolling or completing any clinical trials; competition from third parties that are developing products for similar uses; Keros’ ability to obtain, maintain and protect its intellectual property; and Keros’ dependence on third parties in connection with manufacturing, clinical trials and preclinical studies.
These and other risks are described more fully in Keros’ filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 6, 2025, and its other documents subsequently filed with or furnished to the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, Keros undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
There can be no assurance that the review of strategic alternatives will result in the Company pursuing a transaction or any other strategic outcome. There is no deadline or definitive timetable set for completion of the strategic alternatives review process. Keros intends to provide a preliminary update regarding the status of the process within 60 days of its original announcement of the process on April 10, 2025. Otherwise, Keros does not intend to disclose developments related to the process unless and until it determines that further disclosure is appropriate or necessary.
Important Additional Information and Where to Find It
On April 23, 2025, the Company filed a definitive proxy statement on Schedule 14A (the "Proxy Statement") and form of accompanying proxy card with the SEC in connection with its 2025 Annual Meeting and its solicitation of proxies for the Company’s director nominees and for other matters to be voted on. The Company may also file other relevant documents with the SEC regarding its solicitation of proxies for the 2025 Annual Meeting. This communication is not a substitute for any proxy statement or other document that the Company has filed or may file with the SEC in connection with any solicitation by the Company. STOCKHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH, OR FURNISHED TO, THE SEC CAREFULLY AND IN THEIR ENTIRETY AS THEY CONTAIN IMPORTANT INFORMATION. Stockholders may obtain a copy of the Proxy Statement and any amendments or supplements to the Proxy Statement and any other relevant documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge at the Company’s website at https://ir.kerostx.com/financials-filings/sec-filings.
Certain Information Regarding Participants
This communication is neither a solicitation of a proxy or consent nor a substitute for any proxy statement or other filings that may be made with the SEC. The Company, its directors, its director nominees and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies for the 2025 Annual Meeting. Information regarding the names of such persons and their respective direct or indirect interests in the Company, by securities holdings or otherwise, is available in the Proxy Statement, which was filed with the SEC on April 23, 2025, including in the sections captioned “Compensation Discussion and Analysis,” "Executive Compensation," "Non-Employee Director Compensation," "Transactions with Related Persons and Indemnification" and "Security Ownership of Certain Beneficial Owners and Management." To the extent that the Company's directors and executive officers have acquired or disposed of securities holdings since the applicable "as of" date disclosed in the Proxy Statement, such transactions have been or will be reflected on Statements of Changes in Ownership of Securities on Form 4 or Initial Statements of Beneficial Ownership of Securities on Form 3 filed with the SEC. These documents are or will be available free of charge at the SEC’s website at www.sec.gov.
Contacts
Investor Contact:
Justin Frantz
jfrantz@kerostx.com
617-221-6042
Media Contact:
Mahmoud Siddig / Adam Pollack / Viveca Tress
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
FAQ
What strategic alternatives is KROS considering in its review process?
How much did Keros receive from the Takeda licensing agreement?
What is ADAR1's demand regarding Keros's board of directors?
When is Keros's 2025 Annual Meeting scheduled?
How long can Keros fund its operations with current cash position?
