Latest news with #KROS
Yahoo
10-06-2025
- Business
- Yahoo
Keros Therapeutics' Quiet Near-Term Outlook Overshadows Pipeline Potential: Analyst
Bank of America Securities analyst Jason Zemansky downgraded Keros Therapeutics, Inc. (NASDAQ:KROS) from Buy to Neutral, lowering the price forecast from $32 to $18. Zemansky noted that Keros has wrapped up its strategic review, with the board deciding to advance KER-065 for Duchenne muscular dystrophy (DMD) and return $375 million in excess capital to shareholders. The analyst highlights that the stock has been downgraded not due to concerns about the platform or pipeline, which remains compelling, but because of limited near-term favorable valuation and a solid cash buffer, Zemansky writes that the stock may stay range-bound given that meaningful updates on KER-065 are unlikely soon, with FDA discussions not expected until the third quarter. As a result, other investment opportunities may offer better near-term potential. The analyst slashed the price forecast to reflect adjustments to the cash balance and a higher weighted average cost of capital (WACC) of 16%, now aligned with peers at a similar stage. On June 9, 2025, ADAR1 Capital Management, the largest shareholder of Keros Therapeutics, stated that the recent board election results signal 'widespread dissatisfaction' among investors. ADAR1 highlighted that two directors received support from only about a third of outstanding shares, reflecting a loss of confidence in the board's management and capital allocation. While acknowledging Keros's recent decision to halt a drug program and cut staff, ADAR1 called the actions 'wholly insufficient.' The firm heavily criticized the board's plan to return only a portion of its cash to shareholders, arguing the amount retained is excessive for Keros's limited clinical pipeline. To address this, ADAR1 issued specific demands for the board to take immediate action. The firm called for Keros to increase its capital return by an additional $100 million for a total of $475 million, to be paid through a special dividend by the end of Q3 2025. Furthermore, ADAR1 urged the company to create a contingent value right (CVR) to allow shareholders to directly benefit from the Takeda partnership. ADAR1 warned that if the board does not adopt a more aggressive, investor-focused strategy, it will not hesitate to nominate new directors for the 2026 annual meeting to ensure the will of shareholders is respected. Zemansky acknowledged that the board had limited strategic options aside from fully dissolving the company. However, he writes that bearish investors may have expected a more aggressive outcome than just the potential $375 million capital return, especially since the exact structure and terms of the buyback remain undecided. Zemansky pointed out that beyond the longer development timelines, overall sentiment toward Keros likely remains cautious, which could continue to pressure the stock. While the company's three board nominees were elected despite activist opposition, a notable portion of votes were withheld for the two targeted candidates, indicating lingering investor discontent. He stresses the point that frustration may persist, particularly given the recent setback with TROPOS and skepticism that last month's cost-cutting measures were sufficient. Although some bulls might argue that the stock has been unfairly punished, especially given the added hurdles of developing drugs that target the TGF-β pathway, Zemansky writes most investors will likely wait for more meaningful progress and risk reduction before 'returning to the story.' Price Action: KROS shares are trading lower by 2.34% to $13.76 at last check Tuesday. Read Next:Image via Shutterstock Date Firm Action From To Dec 2020 SVB Leerink Maintains Outperform Dec 2020 HC Wainwright & Co. Maintains Buy May 2020 Piper Sandler Maintains Overweight View More Analyst Ratings for KROS View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Keros Therapeutics' Quiet Near-Term Outlook Overshadows Pipeline Potential: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
30-05-2025
- Business
- Yahoo
Keros Therapeutics, Inc. (KROS) Halts PAH Drug Development After Safety Concerns in TROPOS Trial
Keros Therapeutics, Inc. (NASDAQ:KROS) has announced it will discontinue all development of cibotercept (KER-012) for pulmonary arterial hypertension (PAH) after topline data from the TROPOS Phase 2 trial revealed significant safety concerns. The trial was halted early following a dose-dependent increase in pericardial effusions, a serious cardiac side effect, particularly at higher doses of 3.0 mg/kg and 4.5 mg/kg. In January 2025, all dosing, including lower-dose and placebo arms, was stopped as new adverse events emerged during ongoing safety reviews. The incidence and severity of pericardial effusions in the cibotercept arms exceeded those seen in placebo and were notably higher than rates reported in comparable studies of MRK's Winrevair (sotatercept). A picture of a pharma technician preparing an IV injection of a biopharmaceutical product. Efficacy outcomes were also disappointing, with no clinically meaningful improvements observed in pulmonary vascular resistance or six-minute walk distance. No major safety signals for other adverse events, such as hemoglobin changes or bleeding, were detected. Due to the early termination, interpretation of the 24-week data is limited. In response, Keros Therapeutics, Inc. (NASDAQ:KROS) will reduce its workforce by about 45%, leaving 85 full-time employees and aiming for $17 million in annualized cost savings. Keros Therapeutics, Inc. (NASDAQ:KROS) will now explore strategic alternatives and reassess cibotercept's potential in other indications. While we acknowledge the potential of KROS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KROS and that has 100x upside potential, check out our report about this READ NEXT: and Disclosure: None.
Business Insider
07-05-2025
- Business
- Business Insider
Keros Therapeutics (KROS) Gets a Hold from William Blair
William Blair analyst Matt Phipps maintained a Hold rating on Keros Therapeutics (KROS – Research Report) yesterday. The company's shares closed yesterday at $13.76. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Phipps is an analyst with an average return of -10.3% and a 35.07% success rate. Phipps covers the Healthcare sector, focusing on stocks such as Incyte, Bristol-Myers Squibb, and Amgen. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Keros Therapeutics with a $30.71 average price target. Based on Keros Therapeutics' latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $3.04 million and a GAAP net loss of $46.03 million. In comparison, last year the company earned a revenue of $143 thousand and had a GAAP net loss of $40.24 million Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KROS in relation to earlier this year. Last month, ADAR1 Capital Management, LLC, a Major Shareholder at KROS bought 934,258.00 shares for a total of $9,462,055.64.
