Keros Therapeutics Initiates DMD Trial and Plans ALS Phase II Discussions
- DMD Trial Launch: Keros plans to initiate a clinical trial for Duchenne muscular dystrophy (DMD) with rinvatercept (KER-065) this quarter, while engaging regulators in the second half of the year to discuss a potential phase II program for ALS, indicating the company's proactive approach in neuromuscular disease development.
- Partnership Agreement: The collaboration with Takeda for elritercept includes a $200 million upfront payment and over $1.1 billion in potential milestone payments, with Takeda responsible for development in most territories, providing Keros with substantial funding support and market expansion opportunities.
- Clinical Trial Results: In phase I trials, KER-065 demonstrated good tolerability in healthy volunteers without dose-limiting toxicities or serious adverse events, suggesting potential benefits in muscle regeneration and bone health, which could lay the groundwork for future therapeutic options.
- Strong Financial Position: Keros reported $383 million in cash as of its third-quarter earnings, with an expected runway into the first half of 2028, ensuring sufficient financial backing for advancing DMD and ALS clinical trials along with other preclinical assets.
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- DMD Trial Launch: Keros plans to initiate a clinical trial for Duchenne muscular dystrophy (DMD) with rinvatercept (KER-065) this quarter, while engaging regulators in the second half of the year to discuss a potential phase II program for ALS, indicating the company's proactive approach in neuromuscular disease development.
- Partnership Agreement: The collaboration with Takeda for elritercept includes a $200 million upfront payment and over $1.1 billion in potential milestone payments, with Takeda responsible for development in most territories, providing Keros with substantial funding support and market expansion opportunities.
- Clinical Trial Results: In phase I trials, KER-065 demonstrated good tolerability in healthy volunteers without dose-limiting toxicities or serious adverse events, suggesting potential benefits in muscle regeneration and bone health, which could lay the groundwork for future therapeutic options.
- Strong Financial Position: Keros reported $383 million in cash as of its third-quarter earnings, with an expected runway into the first half of 2028, ensuring sufficient financial backing for advancing DMD and ALS clinical trials along with other preclinical assets.
- New Board Appointment: Keros Therapeutics announced the appointment of Charles Newton to its Board of Directors, effective March 9, 2026, bringing extensive healthcare finance expertise that will support the company during critical value inflection points in its clinical programs, thereby enhancing its competitive position in the biopharmaceutical industry.
- Strategic Development Support: Newton expressed his intention to leverage his experience in guiding biotechnology companies through growth phases to advance the clinical development of rinvatercept (KER-065), which is expected to provide potential disease-modifying benefits to patients, further driving the company's long-term growth and value creation.
- Executive Transition: Concurrent with Newton's appointment, Carl Gordon, Ph.D., will step down from the Board on March 9, 2026, with Keros CEO Jasbir Seehra thanking Gordon for his contributions, emphasizing the stability and continuity in the company's board member transitions.
- Product Development Outlook: Keros focuses on developing innovative therapeutics targeting the TGF-β protein family, with its lead candidates rinvatercept and elritercept aimed at treating Duchenne muscular dystrophy and myelodysplastic syndromes, showcasing the company's potential and market opportunities in the biopharmaceutical sector.
- Low P/B Stocks: The AES Corporation, BorgWarner, Enersys, PG&E, and Keros Therapeutics are highlighted as low price-to-book stocks to buy as 2025 approaches, indicating strong value recognition among investors.
- Growth Potential: AES has a projected 3-5 year EPS growth rate of 11.2%, while Keros Therapeutics boasts an impressive 36.5%, showcasing robust growth prospects in their respective sectors.
- Industry Rankings: Both AES and PG&E hold a Zacks Rank of #2, reflecting their strong market positions and attracting interest from value investors.
- Investment Strategy: By focusing on stocks with a P/B ratio below 1, investors can identify undervalued companies, thereby uncovering potential investment opportunities amidst market fluctuations.
Value Stocks Overview: The article discusses various stocks including StoneCo, General Motors, Enersys, Deutsche Bank, and Keros Therapeutics, highlighting the importance of the price-to-book (P/B) ratio as a valuation tool for identifying undervalued stocks with growth potential.
Understanding Book Value: Book value is defined as the total value remaining for shareholders if a company were to liquidate, calculated by subtracting total liabilities from total assets, and is crucial for assessing whether a stock is under- or overpriced.
P/B Ratio Insights: A P/B ratio of less than one indicates a potentially undervalued stock, while a ratio above one suggests overvaluation; however, investors should be cautious as a low P/B can also signal poor asset returns or overstated assets.
Investment Recommendations: The article provides insights into the projected earnings growth rates for the mentioned companies, encouraging readers to consider these stocks for investment while also recommending the use of additional financial ratios for informed decision-making.

Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation that they will continue to rise, making it a popular yet complex strategy among investors.
Keros Therapeutics Performance: Keros Therapeutics, Inc. (KROS) has a Momentum Style Score of B and a Zacks Rank of #1 (Strong Buy), with significant price increases over various time frames, outperforming both its industry and the S&P 500.
Earnings Estimate Revisions: KROS has seen a positive trend in earnings estimate revisions, with 7 estimates moving higher recently, boosting its consensus estimate significantly, indicating strong future potential.
Investment Recommendation: Given its strong performance metrics and positive momentum indicators, Keros Therapeutics is recommended as a promising stock pick for investors looking for short-term gains.
Analyst Recommendation: B of A Securities has maintained a Neutral recommendation for Keros Therapeutics (NasdaqGM:KROS) as of November 28, 2025, with an average one-year price target of $23.72/share, indicating a potential upside of 35.59% from its current price of $17.49/share.
Financial Projections: Keros Therapeutics is projected to have an annual revenue of $22 million, reflecting a significant decrease of 91.07%, with a non-GAAP EPS forecast of -4.50.
Fund Sentiment: There are currently 312 funds reporting positions in Keros Therapeutics, with a slight increase in ownership and a bullish outlook indicated by a put/call ratio of 0.82.
Shareholder Activity: Notable shareholders include ADAR1 Capital Management, Madison Avenue Partners, and Western Standard, with varying changes in their shareholdings over the last quarter, reflecting mixed portfolio adjustments.









