Analyst Sees Keros Therapeutics As Next Acceleron, Set For Major Biotech Growth

Oppenheimer initiated coverage on Keros Therapeutics Inc KROS, a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics for disorders linked to dysfunctional signaling of the transforming growth factor-beta family of proteins.

Oppenheimer writes, “Keros is developing best-in-class therapeutics that regulate TGF-β signaling to treat hematological and cardiopulmonary diseases. We consider its pipeline one of the more attractive in biotech today, given its disease-modifying potential in indications with considerable unmet need.”

Keros’ lead product candidate, KER-050 (elritercept), is being developed for low blood cell counts or cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndromes (MDS) and myelofibrosis.

• The analyst sees elritercept as the potential preferred 2L treatment in MDS with durable responses and benefits.
• At the EHA update, an overall hematologic response was observed in 56% of the mITT24 patients, with transfusion independence (TI)≥8 weeks achieved in 41%.

Oppenheimer initiates with an Outperform rating and a price target of $102.

Keros’ second product candidate, KER-012 (cibotercept), is being developed for pulmonary arterial hypertension (PAH) and cardiovascular disorders.

• Cibotercept’s safety/efficacy profile is potentially better than Merck & Co Inc’s MRK newly approved Winrevair (sotatercept-csrk) for PAH.

Keros’ third product candidate, KER-065, is being developed for obesity and neuromuscular diseases.

• KER-065 might be the dark horse candidate in obesity. Data support inhibition of myostatin and activin A for maximal increases in lean muscle mass and fat loss with clean safety.

In the near term, the main factors driving value for Keros are MDS and myelofibrosis. Looking ahead, there are significant growth opportunities in pulmonary arterial hypertension (PAH) and obesity, which could yield substantial benefits over the next 12-18 months, the analyst writes.

Given management’s track record in developing drugs that influence the TGF-β signaling pathway, these initiatives are seen as relatively low-risk. Oppenheimer likens Keros to Acceleron, which achieved considerable success and was acquired by Merck for $11.5 billion in 2021.

Price Action: KROS shares are down 0.82% at $46.10 at last check Tuesday.

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Image created using artificial intelligence via Midjourney.