Keros Therapeutics Announces Closing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Keros Therapeutics, Inc. (Nasdaq: KROS) closed an underwritten public offering of 4,025,000 shares of common stock at a price of $40.00 per share, resulting in net proceeds of approximately $151.3 million. The company believes that this, together with its cash and cash equivalents, will fund its planned operating expenses and capital expenditure requirements into 2027.

Insights

Financial Analyst

The recent closure of Keros Therapeutics' underwritten public offering is a significant event for the company's financial health and future prospects. By securing approximately $151.3 million in net proceeds, Keros has bolstered its cash reserves substantially. This infusion of capital is crucial, considering the high costs associated with clinical-stage research and development in the biopharmaceutical industry.

Investors should note the confidence displayed by underwriters in exercising the full option to purchase additional shares, which can be interpreted as a positive market signal. The capital raised extends the company’s operational runway into 2027, which is vital for maintaining R&D momentum without the immediate pressure of additional fundraising. This timeframe should cover several milestones, potentially including the completion of ongoing trials, filing for regulatory approvals, or further pipeline development.

However, the impact on existing shareholders includes dilution of their equity stake. It's important to assess the offering price of $40.00 per share against current market valuation to understand the immediate financial implications. Long-term investors might be less concerned by dilution if the funds are used effectively to enhance the company's value.

Medical Research Analyst

The focus on the transforming growth factor-beta (TGF-ß) family of proteins indicates Keros Therapeutics' commitment to addressing complex disorders through novel therapeutics. Dysfunctional signaling in this protein family is implicated in a variety of diseases, making it a significant target for drug development.

For stakeholders, the success of these therapeutics has the potential to open up new markets and patient segments, thereby increasing revenue streams. The capital raised should support the progression of their pipeline through various stages of clinical trials, which is a critical phase for any biopharmaceutical company. Success in these trials could lead to significant stock appreciation and partnership opportunities.

However, the inherent risks of clinical trials should be acknowledged. Delays, unexpected results, or regulatory hurdles can impact the projected use of funds and the company's valuation. Stakeholders should monitor trial outcomes and FDA interactions closely as they will significantly influence the company's trajectory.

Market Research Analyst

The biopharmaceutical sector is highly competitive and Keros Therapeutics' ability to secure funding through an underwritten offering is indicative of its strategic positioning within the market. The involvement of reputable financial institutions as joint book-running managers, such as Goldman Sachs & Co. LLC and Leerink Partners, lends credibility and might attract further investor interest.

Market analysis should consider the broader trends in biopharmaceutical investing, particularly in the area of novel therapeutic development. The successful capital raise may reflect investor optimism about the sector's growth prospects, despite the high-risk nature of biopharmaceutical R&D.

It is also important to contextualize this event within the current economic climate, considering factors such as interest rates, market liquidity and investor sentiment towards the healthcare sector. The ability to raise funds in a potentially tight capital market could signal underlying strength and investor belief in Keros' long-term potential.

LEXINGTON, Mass., Jan. 09, 2024 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. (“Keros” 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 announced the closing of the previously announced underwritten public offering of 4,025,000 shares of common stock on January 8, 2024, at a public offering price of $40.00 per share, inclusive of the underwriters’ exercise in full of their option to purchase up to an additional 525,000 shares of common stock at the public offering price (the “Option”). The net proceeds to Keros from the offering, before deducting offering expenses, were approximately $151.3 million. All of the common stock was offered by Keros. Based on its current operating plan, as a result of the full exercise of the Option, Keros believes that the net proceeds from this offering, together with its cash and cash equivalents as of September 30, 2023 and net proceeds of approximately $68.5 million from the sale of shares of its common stock pursuant to its at-the-market sales agreement subsequent to September 30, 2023, will enable Keros to fund its planned operating expenses and capital expenditure requirements into 2027.

Goldman Sachs & Co. LLC, Leerink Partners, Piper Sandler and Truist Securities acted as joint book-running managers for the offering.

The offering was made pursuant to a shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (“SEC”) on May 3, 2021 and was effective upon filing. A final prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on January 4, 2024, and is available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained by visiting the SEC’s website or by contacting: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at 1-800-808-7525, ext. 6105, or by email at syndicate@leerink.com; Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at (800) 747-3924, or by email at prospectus@psc.com; or Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, GA 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

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. We are a leader in understanding the role of the TGF-ß family of proteins, which are master regulators of the growth, repair and maintenance of blood cells and a number of tissues, including bone, skeletal muscle, adipose and heart tissue. By leveraging this understanding, we have discovered and are developing large and small molecules that have the potential to provide meaningful and potentially disease-modifying benefit to patients. Keros’ lead protein therapeutic product candidate, KER-050 (elritercept), is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia, in patients with MDS and in patients with MF. Keros’ second product candidate, KER-012, is being developed for the treatment of pulmonary arterial hypertension and for the treatment of cardiovascular disorders. Keros’ third product candidate, KER-065, is being developed for the treatment of obesity and for the treatment of neuromuscular diseases.

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," "expects," "intends," “plans,” “potential,” "projects,” “would” and "future" or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include statements concerning: the expected cash runway of Keros. 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: 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, KER-050, KER-012 and KER-065; 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 Keros’ Quarterly Report on Form 10-Q, filed with the SEC on November 6, 2023, 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.

Investor Contact:
Justin Frantz
jfrantz@kerostx.com
617-221-6042

 

FAQ

What is the recent public offering announcement by Keros Therapeutics, Inc. (Nasdaq: KROS)?

Keros Therapeutics, Inc. (Nasdaq: KROS) announced the closing of an underwritten public offering of 4,025,000 shares of common stock at a price of $40.00 per share.

What are the net proceeds from the public offering for Keros Therapeutics, Inc. (Nasdaq: KROS)?

The net proceeds to Keros from the offering, before deducting offering expenses, were approximately $151.3 million.

How long will the net proceeds from the public offering fund Keros Therapeutics, Inc. (Nasdaq: KROS)?

Keros believes that the net proceeds from this offering, together with its cash and cash equivalents, will enable the company to fund its planned operating expenses and capital expenditure requirements into 2027.

Who were the joint book-running managers for the public offering by Keros Therapeutics, Inc. (Nasdaq: KROS)?

Goldman Sachs & Co. LLC, Leerink Partners, Piper Sandler, and Truist Securities acted as joint book-running managers for the offering.