Keros Therapeutics’ (KROS – Free Report) shares jumped 18.5% yesterday following an announcement that it is exploring strategic options, including a potential sale of the business. To aid the decision process, KROS will seek guidance from outside financial and legal advisors.
As part of the strategic decision, Keros’ board of directors established a Strategic Committee, composed of independent and impartial directors, to oversee the process and provide a recommendation. The move could entail a potential business combination, further pipeline investment or returning capital to its shareholders.
Keros has not set a deadline for its strategic review and may not proceed with any transaction or outcome. The company plans to give a preliminary update within 60 days but will only share further details if deemed necessary.
Year to date, KROS stock has plunged 22.7% compared with the industry’s 7.9% decline.
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In the same press release, Keros stated that it has implemented a limited-duration stockholder rights plan (Rights Plan) to protect stockholder interests by ensuring a fair strategic review process. This has also likely contributed to KROS’ share price rally.
The Rights Plan has been adopted to counter rapid stock accumulation by certain investors seeking control, including one holding 11.2% of Keros’ shares as of April 6, 2025.
Recent Updates From KROS’ Clinical Pipeline
The decision to explore strategic alternatives came after Keros faced a massive setback in late 2024. Following safety issues identified by an independent data monitoring committee, the company halted dosing in a mid-stage study evaluating its pipeline candidate, cibotercept (KER-012), to treat patients with pulmonary arterial hypertension, a kind of lung disease. Eventually, KROS ended the study in early 2025. It still plans to present top-line data from the phase II TROPOS study in the second quarter of 2025.
Apart from cibotercept, Keros has two other novel investigational candidates in its clinical-stage pipeline, elritercept (KER-050), an ActRIIA fusion protein, and KER-065, a selective activin receptor ligand trap.
Elritercept is being developed for the treatment of ineffective hematopoiesis in myelodysplastic syndromes in a phase III study and myelofibrosis in a phase II study. On the other hand, Keros is gearing up to initiate a mid-stage study on KER-065 for Duchenne muscular dystrophy in the first quarter of 2026 after the recent phase I success.
Keros Therapeutics, Inc. Price and Consensus
Keros Therapeutics, Inc. price-consensus-chart | Keros Therapeutics, Inc. Quote
KROS’ Zacks Rank & Stocks to Consider
Keros currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the sector are Bayer (BAYRY – Free Report) , Dynavax Technologies Corporation (DVAX – Free Report) and ADMA Biologics (ADMA – Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, estimates for Bayer’s earnings per share have increased from $1.17 to $1.19 for 2025. During the same time, earnings per share have increased from $1.27 to $1.28 for 2026. Year to date, shares of Bayer have gained 15.4%.
BAYRY’s earnings matched estimates in two of the trailing three quarters while missing the same on the remaining occasion, the average negative surprise being 19.61%.
In the past 30 days, estimates for Dynavax’s earnings per share have remained constant at 33 cents for 2025. During the same time, earnings per share have remained constant at 57 cents for 2026. Year to date, shares of DVAX have lost 14.1%.
DVAX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 9.58%.
In the past 30 days, estimates for ADMA Biologics’ 2025 earnings per share have increased from 70 cents to 71 cents. The estimate for 2026 earnings per share has remained constant at 93 cents. Year to date, shares of ADMA Biologics have gained 8.9%.
ADMA’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 32.8%.
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