Keros Therapeutics Announces Pricing of Upsized Public Offering of Common Stock
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Insights
The announcement by Keros Therapeutics, Inc. of a public offering of 3,500,000 shares at $40.00 per share, with potential gross proceeds of $140.0 million, is a significant liquidity event. The capital raised is likely earmarked for the advancement of the company's clinical pipeline, which focuses on disorders related to TGF-ß signaling. This influx of capital could accelerate research and development timelines, potentially bringing therapies to market more quickly if clinical trials are successful.
However, the dilutive effect on current shareholders cannot be ignored. With the addition of potentially 525,000 more shares, the earnings per share could be negatively impacted in the short-term. Investors should weigh the benefits of potential growth against the immediate dilution. The involvement of reputable financial institutions as joint book-running managers could be seen as a vote of confidence in the company's prospects.
Long-term implications hinge on the effective deployment of capital towards clinical trials and research. Success in these areas could lead to significant appreciation in the company's value, offsetting dilution concerns. Conversely, any setbacks could be exacerbated by the increased share count.
The biopharmaceutical sector is highly competitive and companies like Keros operate in a high-risk, high-reward environment. The market's response to Keros's offering will likely reflect the current appetite for biotech investments, which is influenced by factors such as regulatory environment, market trends and investor sentiment towards healthcare innovation.
Historically, public offerings in this sector are used to fund lengthy and costly clinical trials. Keros's specialization in TGF-ß-related therapies places it within a niche but potentially lucrative area of the biopharmaceutical market. It is essential to consider the company's track record, pipeline potential and competitive landscape when evaluating the potential impact of this capital raise.
Market dynamics, such as the performance of peer companies and the overall investment climate for biotech stocks, will also play a role in how this offering is received and could influence Keros's stock price and market capitalization in both the short and long term.
The focus on TGF-ß signaling by Keros Therapeutics represents a targeted approach within the broader field of regenerative medicine and oncology. Dysfunctional TGF-ß signaling is implicated in various disorders, indicating that Keros's pipeline could address unmet medical needs across multiple indications.
Investments in this area require a deep understanding of the scientific underpinnings, as well as the regulatory hurdles that accompany the development of novel therapeutics. The capital raised through this public offering is crucial for advancing Keros's research but comes with the inherent risks associated with clinical-stage development.
Stakeholders should consider the company's scientific expertise, existing data and the potential market size for their therapeutics. Success in clinical trials could lead to significant advancements in treatment options and patient outcomes, which in turn could drive long-term value for Keros and its investors.
LEXINGTON, Mass., Jan. 03, 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 pricing of an underwritten public offering of 3,500,000 shares of common stock, at a public offering price of
Goldman Sachs & Co. LLC, Leerink Partners, Piper Sandler and Truist Securities are acting as joint book-running managers for the offering.
The offering is being 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. The offering will be made only by means of a prospectus supplement and the accompanying prospectus which forms a part of the effective shelf registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on January 3, 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, when available, 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 completion, timing and size of the proposed offering. 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 the Company’s 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
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