Keros Therapeutics swings to Q3 profit on Takeda license revenue

Overview

• US biopharma company reported Q3 net income after prior-year loss, driven by Takeda license revenue

• First patient dosed in Phase 2 trial for rinvatercept in Duchenne muscular dystrophy

Outlook

• Company expects cash runway into the second half of 2028

• Keros expects initial data from Phase 2 DMD trial in first half of 2027

• Company sees potential for KER-206 in disorders with pathological bone loss

Result Drivers

• TAKEDA LICENSE REVENUE - Q3 net income increase was primarily driven by revenue from Keros' license agreement with Takeda

• PIPELINE ADVANCEMENT - Higher R&D expenses reflected increased efforts to advance Keros' pipeline, partly offset by lower elritercept-related costs

• LOWER OPERATING COSTS - General and administrative expenses fell due to lower compensation and professional fees

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Keros Therapeutics, Inc. is $18.00, about 66.2% above its November 4 closing price of $10.83

Reuters Recommended Reads

• Nov 3 - Denali Therapeutics swings to Q3 net profit on one-time gain

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• Nov 5 - Fate Therapeutics Q3 net loss narrows as expenses fall

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)