Keros Therapeutics Reports $211.2 Million Revenue and $148.5 Million Net Income in Q1 2025

Keros Therapeutics, Inc. reported significant financial performance for the first quarter of 2025, with total revenue reaching $211.2 million, a substantial increase from $83,000 in the same period of the previous year. This growth was primarily driven by a $195.4 million license revenue from a recent agreement with Takeda Pharmaceuticals, marking a pivotal shift in the company's financial landscape. The net income for the quarter was $148.5 million, a notable recovery from a net loss of $43.1 million in the first quarter of 2024. The company's accumulated deficit decreased to $420.3 million from $568.8 million at the end of the previous fiscal year.

In terms of operational developments, Keros Therapeutics has made strides in its clinical programs. The company is advancing its product candidates, including cibotercept (KER-012) for pulmonary arterial hypertension and KER-065 for neuromuscular disorders. The Phase 1 clinical trial for KER-065 has shown promising initial results, and the company plans to engage with regulatory authorities in the third quarter of 2025, with a Phase 2 trial expected to begin in early 2026. Additionally, Keros has initiated a Phase 3 clinical trial for elritercept (KER-050) in patients with lower-risk myelodysplastic syndromes.

The company has also seen changes in its operational metrics, with research and development expenses increasing to $48.7 million from $38.3 million year-over-year, reflecting ongoing investments in clinical trials and personnel. General and administrative expenses remained relatively stable at $10.5 million, indicating a controlled approach to overhead costs. As of March 31, 2025, Keros had cash and cash equivalents of $720.5 million, providing a solid financial foundation to support its ongoing and future clinical programs.

Strategically, Keros has initiated a formal review process to explore alternatives aimed at enhancing shareholder value, which may include potential partnerships or business combinations. The board has established a committee to oversee this process, signaling a proactive approach to navigating the evolving biopharmaceutical landscape. Furthermore, the company has adopted a stockholder rights plan to protect against potential hostile takeovers, reflecting its commitment to safeguarding shareholder interests during this strategic evaluation.

Looking ahead, Keros Therapeutics anticipates continued investment in its clinical pipeline, with expectations of ongoing operating losses as it advances its product candidates through development. The company remains focused on securing additional funding to support its operations and is evaluating various strategic options to enhance its market position and shareholder value.