Keros Therapeutics Announces Effectiveness of Global License Agreement with Takeda to Advance Elritercept

Rhea-AI Summary

Keros Therapeutics (Nasdaq: KROS) announced the effectiveness of its global development and commercialization license agreement with Takeda (TSE:4502/NYSE:TAK) for elritercept, effective January 16, 2025. The agreement, initially announced on December 3, 2024, was finalized following the expiration of the Hart-Scott Rodino Antitrust Improvements Act waiting period. As part of the agreement, Takeda will make an upfront payment of $200.0 million to Keros, a clinical-stage biopharmaceutical company focused on developing therapeutics for disorders linked to dysfunctional TGF-ß family protein signaling.

Positive

• Secured $200 million upfront payment from Takeda
• Successfully completed global licensing agreement with major pharmaceutical company Takeda

Negative

• None.

Insights

Financial Analyst

The effectiveness of this licensing deal represents a major financial milestone for Keros Therapeutics. The $200 million upfront payment from Takeda significantly strengthens Keros's balance sheet, extending their operational runway. For context, this payment represents approximately 45% of Keros's current market capitalization of $440 million, making it a transformative deal for a clinical-stage biotech company.

The partnership with Takeda, a global pharmaceutical leader, validates Keros's technology platform and development strategy. Beyond the immediate cash injection, this collaboration provides Keros with a strong commercialization partner, potentially reducing future capital requirements and development risks. The deal's structure, receiving regulatory clearance through Hart-Scott-Rodino, indicates careful consideration of antitrust concerns and proper regulatory compliance.

Biotech Industry Expert

This partnership for elritercept targeting TGF-ß signaling pathways represents a strategic coup in the competitive landscape of protein therapeutics. Takeda's commitment through this substantial upfront payment indicates strong confidence in elritercept's potential therapeutic value and Keros's scientific platform focusing on TGF-ß family proteins.

For the general public: Think of TGF-ß proteins as cellular traffic controllers that help regulate various body processes. When these controllers malfunction, they can contribute to different diseases. Elritercept is designed to help fix these traffic patterns. Takeda's interest suggests they see this approach as particularly promising.

The deal's timing and structure suggest both companies anticipate significant market opportunities, particularly given the broad potential applications in treating disorders linked to TGF-ß signaling dysfunction. This could include applications in fibrosis, cancer and various inflammatory conditions.

LEXINGTON, Mass., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. (“Keros” or the “Company”) (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 that the global development and commercialization license agreement with Takeda (TSE:4502/NYSE:TAK) to advance elritercept became effective on January 16, 2025. The agreement, which was previously announced on December 3, 2024, became effective upon the expiration or termination of the applicable waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended. In connection with the effectiveness of the agreement, Takeda will make an upfront payment to the Company of $200.0 million.

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. Cibotercept is being developed for the treatment of pulmonary arterial hypertension and for the treatment of cardiovascular disorders. KER-065 is being developed for the treatment of neuromuscular diseases. Elritercept 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 “potential” and “will” or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include statements concerning: the expected upfront payment under the license agreement. 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, 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 November 6, 2024, 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 value of the upfront payment Keros (KROS) will receive from Takeda?

Keros Therapeutics will receive an upfront payment of $200.0 million from Takeda as part of their global development and commercialization license agreement for elritercept.

When did the Keros-Takeda licensing agreement for elritercept become effective?

The global development and commercialization license agreement between Keros and Takeda became effective on January 16, 2025.

What regulatory approval was required for the Keros (KROS) and Takeda agreement?

The agreement required the expiration or termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976 before becoming effective.

What is the focus of Keros Therapeutics' (KROS) drug development?

Keros Therapeutics focuses on developing therapeutics to treat disorders linked to dysfunctional signaling of the transforming growth factor-beta (TGF-ß) family of proteins.