- Keros Therapeutics (KROS, Financial) has initiated a strategic review to maximize shareholder value, exploring options such as a potential sale, pipeline investment, or capital return.
- Keros received a $200 million upfront from a deal with Takeda, with up to $1.1 billion in potential milestones and royalties, funding operations until 2029.
- ADAR1 Capital Management opposes the re-election of two directors unless their CIO is added, seeking immediate capital returns over strategic review outcomes.
Keros Therapeutics (KROS), a clinical-stage biopharmaceutical company, has announced a strategic review through an independent committee to consider various options to enhance shareholder value. These options include a potential company sale, further investment in its product pipeline, or returning capital to shareholders.
This strategic review follows a significant licensing agreement with Takeda Pharmaceuticals, where Keros secured an upfront payment of $200 million. This deal could potentially bring up to $1.1 billion in additional milestones, plus royalties, strengthening Keros’s cash position to fund operations through 2029.
Amidst this strategic evaluation, ADAR1 Capital Management has expressed opposition to the re-election of two independent directors, Mary Ann Gray and Alpna Seth, unless their Chief Investment Officer is added to the Keros Board. ADAR1 is advocating for an immediate return of capital to shareholders rather than waiting for the strategic review's conclusions.
The Keros Board, consisting of nine directors (eight independent), continues to recommend that stockholders vote "FOR" its director nominees at the upcoming Annual Meeting on June 4, 2025. This vote represents a crucial decision on whether to pursue immediate returns or strategically navigate longer-term value creation.
The outcome of this shareholder vote will significantly influence Keros's approach in deploying capital and pursuing strategic alternatives moving forward.
