Keros Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company generated total revenue of $14.3 million for the quarter, a substantial increase from $388,000 in the same period last year. This growth was primarily driven by $10 million in license revenue from its agreement with Takeda Pharmaceuticals, alongside $4.3 million in service revenue related to transition services. For the nine months ended September 30, 2025, Keros reported total revenue of $243.7 million, compared to $508,000 for the same period in 2024, reflecting a notable shift in financial performance.
Operating expenses for the third quarter were $29.6 million, down from $59 million in the prior year, largely due to reduced research and development costs as the company transitions clinical activities for its product candidates to Takeda. Keros reported a net loss of $7.3 million for the quarter, a significant improvement from a loss of $52.9 million in the same quarter of 2024. For the nine-month period, the company achieved a net income of $110.5 million, compared to a loss of $141.3 million in the previous year, primarily due to the revenue generated from the Takeda agreement.
In terms of strategic developments, Keros has made significant strides in its clinical programs. The company is advancing its lead product candidate, KER-065, for the treatment of Duchenne muscular dystrophy, with plans to initiate a Phase 2 clinical trial in early 2026. Additionally, Keros is progressing with elritercept (KER-050), which is currently in a Phase 3 clinical trial for myelodysplastic syndromes. The company received a $10 million milestone payment from Takeda upon the dosing of the first patient in this trial, further solidifying its financial position.
Keros has also undergone a corporate restructuring, reducing its workforce by approximately 45% to streamline operations and reduce costs. This restructuring is expected to yield annualized savings of around $17 million. As of September 30, 2025, Keros reported cash and cash equivalents of $693.5 million, which the company believes will fund its operations into the first half of 2028, despite plans to return $375 million of excess capital to stockholders through share repurchases and an ongoing tender offer.
Looking ahead, Keros anticipates continued investment in its clinical development programs while navigating the complexities of regulatory approvals and market competition. The company remains focused on advancing its product candidates and establishing a commercial presence, although it acknowledges the inherent risks and uncertainties associated with the biopharmaceutical industry.
About Keros Therapeutics, Inc.
Keros Therapeutics is a clinical-stage biopharmaceutical company developing novel TGF-β pathway therapeutics for disorders affecting blood, bone, muscle, and cardiovascular tissues. Its key products target pulmonary arterial hypertension, neuromuscular diseases, and hematologic conditions like MDS and myelofibrosis. The company's approach leverages proprietary protein therapeutics to modulate tissue growth, repair, and maintenance, aiming to address unmet medical needs with potentially disease-modifying treatments.
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