Keros Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Keros Therapeutics, Inc. (KROS) announces the launch of a proposed underwritten public offering of $120.0 million of shares of its common stock. The offering is subject to market conditions and will be made pursuant to a shelf registration statement on Form S-3 that was filed with the SEC.

Insights

Financial Analyst

The announcement by Keros Therapeutics of a proposed underwritten public offering of $120 million in common stock is a significant financial event that warrants analysis from a capital markets perspective. The decision to engage in a public offering is often driven by a company's need to raise additional capital to fund ongoing research and development, particularly in the clinical-stage biopharmaceutical sector where Keros operates. The offering size represents a substantial influx of capital, which could be indicative of Keros's aggressive expansion or development strategies.

From an investor standpoint, the dilutive effect of the additional shares must be weighed against the potential for accelerated growth or advancement of the company's drug pipeline. The fact that Keros is granting underwriters a 30-day option to purchase additional shares up to 15% of the offering size suggests confidence in strong market demand. However, market conditions and investor appetite will ultimately dictate the success of the offering and its terms.

Furthermore, the involvement of reputable financial institutions as joint book-running managers could be interpreted as a positive signal regarding the offering's credibility and the company's prospects. Investors should monitor the final terms of the offering and the subsequent deployment of the raised capital towards Keros's strategic goals.

Medical Research Analyst

The therapeutic focus of Keros on disorders related to the TGF-ß family of proteins is of particular interest within the medical research community. Dysfunctional signaling in this pathway has been implicated in a variety of diseases, making it a promising target for novel treatments. The capital raised through this public offering is likely earmarked for advancing clinical trials, scaling up manufacturing capabilities, or possibly funding new research initiatives.

Given the clinical-stage nature of the company, the success of its pipeline candidates is crucial. The funds from the public offering could accelerate the development of these candidates, potentially bringing innovative therapies to market sooner. However, the inherent risks of drug development, including the possibility of clinical trial failures or regulatory hurdles, should be considered by stakeholders evaluating the company's future prospects.

It is also noteworthy that the TGF-ß pathway is complex and therapeutics targeting this pathway must be designed with precision to avoid off-target effects. The medical research community will be closely watching the outcomes of Keros's trials for insights into the safety and efficacy of their approach.

Market Research Analyst

Biopharmaceutical companies like Keros operate in a highly competitive and rapidly evolving industry. The market's response to Keros's public offering will be influenced by current industry trends, investor sentiment towards biotech in general and company-specific factors such as the perceived potential of its drug pipeline. It is essential for the company to effectively communicate its value proposition and the scientific merit of its therapeutic candidates to attract investment.

Assessing the competitive landscape is critical, as the presence of alternative therapies or competing drugs in development can impact Keros's market positioning. The capital raised could provide Keros with the means to outpace competitors in bringing treatments to market or to invest in next-generation technologies that could provide a competitive edge.

Long-term, the success of the offering and the deployment of capital could influence Keros's market share and financial stability. The outcome of this offering may also set a precedent for future fundraising efforts and impact the company's strategic partnerships and collaborations.

LEXINGTON, Mass., Jan. 03, 2024 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. (“Keros”) (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 launch of a proposed underwritten public offering of $120.0 million of shares of its common stock (the “Offer Shares”). All shares of common stock to be sold in the proposed offering will be sold by Keros. In addition, Keros expects to grant the underwriters a 30-day option to purchase a number of additional shares not to exceed 15% of the number of Offer Shares. The offering is subject to market and other conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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

The proposed offering will be 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 will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from: 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, terms and size of the proposed offering and Keros’ expectations with respect to granting the underwriters a 30-day option to purchase additional shares. 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

FAQ

What did Keros Therapeutics, Inc. (KROS) announce?

Keros announced the launch of a proposed underwritten public offering of $120.0 million of shares of its common stock.

What is the ticker symbol for Keros Therapeutics, Inc.?

The ticker symbol for Keros Therapeutics, Inc. is KROS.

What is the purpose of the proposed offering?

The purpose of the proposed offering is to raise funds through the sale of common stock.

Who are the joint book-running managers for the offering?

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

How can I obtain the preliminary prospectus supplement and accompanying prospectus for the offering?

The preliminary prospectus supplement and accompanying prospectus will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies can also be obtained from the respective underwriters.