Keros Therapeutics, Inc. (KROS): History, Ownership, Mission, How It Works & Makes Money

When you look at Keros Therapeutics, Inc. (KROS), a clinical-stage biotech, are you seeing a volatile stock or a deeply undervalued pipeline? This company is not a typical revenue story, yet its market capitalization sits around $683.48 million, driven by a strategic focus on dysfunctional signaling of the transforming growth factor-beta (TGF-ß) protein family. The financial picture is defintely complex, but the Q1 2025 results showed a massive revenue spike to $211.2 million, largely fueled by a $200 million upfront payment from its Takeda Pharmaceuticals U.S.A., Inc. licensing deal. Plus, the recent completion of a $375 million capital return program and a cash position of $693.5 million as of September 30, 2025, means they have serious runway to fund their clinical trials into 2028.

Keros Therapeutics, Inc. (KROS) History

Given Company's Founding Timeline

Keros Therapeutics, Inc. was built on the premise of tackling serious and rare diseases with high unmet medical needs by focusing on the transforming growth factor-beta (TGF-ß) protein family. This is a complex area of biology, so the company started by assembling a team of seasoned industry veterans to simplify the path to novel drug development.

Year established

While Keros Therapeutics was incorporated in Delaware in December 2015, it officially commenced operations in April 2016.

Original location

The company is headquartered in Lexington, Massachusetts, a key hub for biotechnology innovation in the United States.

Founding team members

The company was founded by an experienced team of industry experts, led by Dr. Jasbir Seehra, Ph.D., who was appointed as the Chief Executive Officer and Director in December 2015, aligning with the company's incorporation. The initial core leadership also included key scientific and financial executives, like Dr. Jennifer Lachey, Ph.D., as Chief Scientific Officer, and Mr. Keith C. Regnante, MBA, as Chief Financial Officer.

Initial capital/funding

Keros Therapeutics raised a total of $90 million across three funding rounds before its Initial Public Offering (IPO). The first significant capital injection was its Series A funding round, which secured $11 million on November 9, 2017. This initial funding provided the runway to advance its preclinical pipeline, including its lead candidate, elritercept (then KER-050).

Given Company's Evolution Milestones

The company's trajectory is a classic biotech story: significant early funding, a successful IPO, and a major strategic pivot driven by clinical trial data and market dynamics. For the 2025 fiscal year, the company reported an impressive $246.72 million in revenue over the last twelve months. Here's the quick math on how they got here, focusing on the key moments:

Given Company's Transformative Moments

The biggest shift for Keros Therapeutics wasn't a single event, but a rapid strategic reallocation of capital and focus that occurred between late 2024 and late 2025. This redefined the company's near-term risk profile.

• The Takeda Deal as a War Chest: The December 2024 Takeda partnership was a massive financial win, securing $200 million upfront. This cash influx gave the company the financial strength to pivot away from a costly late-stage trial failure, which is defintely a rare luxury in biotech.

• Strategic Focus on KER-065: Following the termination of the TROPOS trial in early 2025, the company shifted its lead program focus to KER-065, a candidate for Duchenne muscular dystrophy (DMD) and bone disorders. This move concentrated resources on a promising Phase 1 asset that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug designation. They are targeting a Phase 2 trial start in the first quarter of 2026.

• The $375 Million Capital Return: The decision to return a significant portion of capital to shareholders, concluding with a $194.4 million tender offer in November 2025, was a clear signal of management's confidence in the remaining pipeline and a commitment to maximizing value. This action reduced the outstanding shares and streamlined the organization, focusing on the core clinical strategy. You can dive deeper into the financial implications in Breaking Down Keros Therapeutics, Inc. (KROS) Financial Health: Key Insights for Investors.

The core takeaway is that Keros Therapeutics successfully monetized its most advanced asset, elritercept, before its clinical path became too expensive, and then aggressively returned capital while refocusing on a new, high-potential lead candidate. That's smart capital allocation.

Keros Therapeutics, Inc. (KROS) Ownership Structure

Keros Therapeutics, Inc. is a publicly traded, clinical-stage biopharmaceutical company primarily controlled by institutional investors who hold the vast majority of outstanding shares, which is typical for a high-growth biotech firm. This structure means major strategic decisions are heavily influenced by the mandates of large investment funds like Vanguard Group Inc. and BlackRock, Inc.

Given Company's Current Status

Keros Therapeutics, Inc. is a public entity, trading on the Nasdaq Global Market (NasdaqGM) under the ticker symbol KROS. As a public company, it is subject to the rigorous reporting and transparency requirements of the U.S. Securities and Exchange Commission (SEC). The company recently executed a significant capital return program, concluding a cash tender offer on November 18, 2025, to repurchase up to 10,950,165 shares at a fixed price of $17.75 per share, totaling approximately $194.4 million. This repurchase represented about 35.91% of the outstanding common stock as of that date, a substantial move to return capital to shareholders. For a deeper look at the company's balance sheet, you can check out Breaking Down Keros Therapeutics, Inc. (KROS) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

The company's decision-making is steered by a strong institutional presence, with hedge funds and asset managers holding over two-thirds of the stock. Insiders, including executives and board members, maintain a significant stake, aligning their interests with long-term shareholder value. Here's the quick math on who owns the stock as of the 2025 fiscal year data:

Given Company's Leadership

The leadership team at Keros Therapeutics, Inc. is seasoned, with an average tenure of 5.7 years, which shows good stability for a biotech firm. The executive structure saw a realignment in late 2025 to focus resources on the KER-065 clinical program.

• Jasbir S. Seehra, Ph.D.: Chief Executive Officer and President. Dr. Seehra assumed the additional role of President in August 2025 to oversee strategy and day-to-day operations.
• Jean-Jacques Bienaimé: Chair of the Board. Appointed Chair in August 2025, he provides critical oversight as the company advances its pipeline.
• Keith Regnante: Chief Financial Officer. He has served in this role since February 2020.
• Lorena Lerner, Ph.D.: Chief Scientific Officer. Promoted to this role in August 2025, she leads the scientific advancement of the pipeline.
• Yung Chyung, M.D.: Chief Medical Officer. Dr. Chyung joined the team in November 2024 to advance clinical development efforts.

The CEO's total compensation for the 2025 fiscal year was approximately $6.27 million, a figure that is defintely above average for companies of similar size in the US market. This leadership is tasked with translating innovative science into transformative therapies.

Keros Therapeutics, Inc. (KROS) Mission and Values

Keros Therapeutics, Inc.'s core purpose is to develop novel, disease-modifying therapies for serious and rare hematological and musculoskeletal disorders, driven by a deep commitment to scientific rigor and patient outcomes. Their cultural DNA is built around a patient-centric approach, which is why they are so focused on modulating the transforming growth factor-beta (TGF-β) family of proteins to address root causes of disease.

You're looking at a clinical-stage biopharma company, so their mission isn't just about revenue; it's about pipeline execution. Here's the quick math on that: the company's cash and cash equivalents stood at a strong $693.5 million as of September 30, 2025, which they project will fund operations into the first half of 2028, even after the announced $375 million capital return to stockholders. That's a solid runway for their high-stakes clinical trials. Mission Statement, Vision, & Core Values of Keros Therapeutics, Inc. (KROS).

Keros Therapeutics' Core Purpose

Keros Therapeutics, Inc. was founded in 2015 with the clear goal of creating life-changing therapies for serious and rare diseases with high unmet medical needs. Their mission is a practical guide for their research and development spending, which totaled $48.7 million in the first quarter of 2025. This focus is what allows them to move beyond symptom management to potentially disease-modifying treatments.

Their entire strategy hinges on being a leader in understanding the TGF-β superfamily of proteins, which are master regulators of cell growth and repair. It's a highly specialized, high-risk, high-reward approach. This commitment to scientific innovation is defintely their biggest asset.

• Patient Focus: Placing the needs of individuals with serious diseases at the center of all drug development.
• Scientific Rigor: Maintaining the highest standards in research, particularly in their work on the TGF-β superfamily.
• Collaboration: Working with partners, like their Takeda Pharmaceuticals agreement which helped drive Q1 2025 revenue to $211.2 million.
• Resilience: Navigating the long, complex path of clinical development, which is why they reported a net loss of $7.3 million in Q3 2025 as they invest in their pipeline.

Official Mission Statement

The company's mission is to bring meaningful therapeutic advances to patients and their families. This is achieved through innovative proficiency and dedication to discovering and developing novel and safe drugs with disease-modifying capability. They concentrate on disorders linked to dysfunctional signaling of the transforming growth factor-beta (TGF-ß) family of proteins.

Their lead candidates, like elritercept (KER-050) for cytopenias in myelodysplastic syndromes and KER-065 for neuromuscular diseases, are direct evidence of this mission in action. This isn't theoretical science; it's about getting a drug to market that genuinely improves quality of life.

Vision Statement

Keros Therapeutics' vision is to create innovative clinical solutions that will profoundly improve and potentially save the lives of individuals with serious and rare diseases. This vision is the long-term aspirational target for the organization.

It's a vision that demands financial strength, which they demonstrated when their Q1 2025 net income jumped to $148.5 million due to a licensing agreement, giving them the capital to pursue this long-term goal.

• Profoundly improve and potentially save lives.
• Focus on serious and rare diseases.
• Deliver innovative clinical solutions.

Keros Therapeutics' Slogan/Tagline

Keros Therapeutics, Inc. does not prominently feature a single, public-facing slogan or tagline. As a clinical-stage biopharmaceutical company, their corporate identity is communicated through their scientific focus and patient-centric mission.

Their de facto tagline is embedded in their corporate profile: 'A leader in understanding the role of the transforming growth factor-beta (TGF-β) family of proteins.' This statement cuts straight to their competitive advantage and core competence.

Keros Therapeutics, Inc. (KROS) How It Works

Keros Therapeutics, Inc. operates as a clinical-stage biopharmaceutical company, creating value by discovering and developing novel protein therapeutics that modulate the transforming growth factor-beta (TGF-ß) family of proteins, which are master regulators of tissue growth, repair, and maintenance. The company's business model is centered on advancing its pipeline through clinical trials and then monetizing these assets primarily through strategic licensing agreements with larger pharmaceutical partners, like Takeda Pharmaceuticals U.S.A., Inc., which provide non-dilutive funding and shared development risk.

Honestly, their business is simple: find a target, build a drug, and partner to get it to market.

Keros Therapeutics, Inc.'s Product/Service Portfolio

The company's value is tied directly to its pipeline of drug candidates, which target disorders linked to dysfunctional TGF-ß signaling. As of November 2025, the focus is squarely on two key programs following a strategic realignment.

Keros Therapeutics, Inc.'s Operational Framework

Keros's operational framework is a focused, capital-efficient research and development (R&D) engine, especially after the strategic changes implemented in 2025. They make money in two primary ways right now: milestone payments from partners and managing their cash runway defintely well.

• Revenue Generation: The company's revenue of $148.5 million in Q1 2025, which led to a net income for the quarter, was largely driven by recognizing revenue from the Takeda Pharmaceuticals U.S.A., Inc. license agreement. This is a critical funding mechanism for a clinical-stage biotech.
• R&D Prioritization: Following the discontinuation of internal development for Cibotercept (KER-012) due to safety concerns in the Phase 2 TROPOS trial, the company underwent a strategic realignment. This included a 45% workforce reduction, which is expected to save $17 million annually in operating expenses.
• Cash Management: As of September 30, 2025, cash and cash equivalents totaled $693.5 million. The board also executed a capital return program of $375 million, concluding with a tender offer in November 2025 to repurchase approximately 10.95 million shares at $17.75 per share. This financial discipline is designed to fund operations into the first half of 2028, even while Q3 2025 R&D expenses were still $19.5 million.

Keros Therapeutics, Inc.'s Strategic Advantages

The company's competitive edge is not just in the drugs themselves, but in the strategic choices they've made to mitigate the high risk of drug development, plus their proprietary scientific focus.

• Scientific Niche: Keros is a leader in understanding and modulating the TGF-ß family of proteins, which gives them a proprietary platform to develop therapeutics for a wide range of hematological and musculoskeletal disorders. This is a highly specialized area of biology.
• De-risked Lead Asset: The partnership with Takeda for Elritercept (KER-050) is a major advantage. Takeda's commitment to advance the drug to a Phase 3 trial means Keros benefits from the drug's potential success while offloading the substantial cost and operational burden of late-stage clinical development. The initial $200 million upfront payment from this deal was transformative.
• Financial Fortress: The significant cash balance, even after the $375 million capital return to stockholders, provides a long runway into 2028. This financial stability is rare for a clinical-stage biotech and offers a strong buffer against pipeline setbacks, which is a constant risk in this industry.
• Focused Pipeline: By discontinuing the Cibotercept program and focusing on KER-065, the company has streamlined its R&D spend and concentrated its intellectual capital on the most promising, high-value assets, like DMD, where the global market is expected to be $5.2 billion by 2033.

You can get a deeper look at the institutional and individual investors betting on this strategy by Exploring Keros Therapeutics, Inc. (KROS) Investor Profile: Who's Buying and Why?

Keros Therapeutics, Inc. (KROS) How It Makes Money

Keros Therapeutics, Inc. is a clinical-stage biopharmaceutical company, meaning it does not yet generate revenue from commercial product sales. Instead, the company makes money primarily through strategic collaboration and licensing agreements with larger pharmaceutical partners, receiving substantial upfront payments and subsequent milestone payments as its drug candidates advance through clinical development.

This model is common for biotech firms: you fund the expensive early-stage research and clinical trials, and then a partner like Takeda Pharmaceuticals U.S.A., Inc. steps in to fund the late-stage development and future commercialization, giving you a significant cash infusion now to fuel your other pipeline programs.

Keros Therapeutics' Revenue Breakdown

For the nine months ended September 30, 2025, Keros Therapeutics reported total revenue of approximately $243.68 million. This massive increase from prior periods is almost entirely driven by the strategic licensing deal for its lead candidate, elritercept (KER-050). Here's how that revenue breaks down:

Business Economics

The core economic engine of Keros Therapeutics is its intellectual property (IP) portfolio, specifically its drug candidates that target the transforming growth factor-beta (TGF-ß) family of proteins. The value is in the clinical data, not current sales.

• Upfront Payments: The most significant revenue is non-recurring, like the $200.0 million upfront payment from Takeda for the exclusive license to elritercept (KER-050) in certain territories. This is essentially a large, one-time payment for the right to partner.
• Milestone Payments: Revenue is recognized upon achieving specific clinical or regulatory milestones, such as the $10.0 million milestone payment received after the first patient was dosed in the Phase 3 RENEW trial for elritercept. This is the closest thing to a recurring revenue stream, but it's still event-driven and not guaranteed.
• Cash Runway: The company's financial health is measured by its cash position and cash burn rate (the speed at which it spends its cash). As of September 30, 2025, Keros had $693.5 million in cash and cash equivalents, which is expected to fund operations into the first half of 2028, even after returning $375.0 million of excess capital to stockholders. That's a defintely strong liquidity position.
• Pricing Strategy: There is no current product pricing strategy. Future revenue from product sales will come from royalties on net sales of elritercept by Takeda, which is a common, lower-risk way for a biotech to capture value without building a costly commercial sales force.

Keros Therapeutics' Financial Performance

The company's financial performance in 2025 reflects a successful transition from a pure R&D-focused entity to one with significant, non-dilutive funding from a major pharmaceutical partner. The Takeda deal fundamentally changed the near-term financial picture.

• Year-to-Date Profitability: For the nine months ended September 30, 2025, Keros reported a net income of $110.48 million. This is a massive swing from the net loss of $141.33 million reported for the same period a year prior, directly attributable to the licensing revenue.
• Quarterly Loss: Despite the year-to-date profit, the company still posted a net loss of $7.28 million in the third quarter of 2025. This shows the underlying operational reality: the company continues to spend heavily on research and development (R&D) for its other pipeline candidates, like KER-065 and cibotercept (KER-012).
• R&D Investment: R&D expenses for the nine months ended September 30, 2025, were $111.7 million, down from $128.0 million a year ago. This decrease is largely due to Takeda taking over the R&D costs for elritercept, a key benefit of the partnership.
• Capital Return: The Board's decision to return $375.0 million in excess capital to stockholders, partly via a tender offer, signals a mature approach to capital allocation and a belief that the current cash balance is more than sufficient to advance the remaining pipeline programs.

To understand the full context of these numbers, you should check out Breaking Down Keros Therapeutics, Inc. (KROS) Financial Health: Key Insights for Investors for a deeper dive into the balance sheet and cash flow.

Keros Therapeutics, Inc. (KROS) Market Position & Future Outlook

Keros Therapeutics, Inc. is a clinical-stage biopharmaceutical company positioned at a critical inflection point, transitioning from a pure research focus to late-stage clinical execution with significant financial backing. The company's future trajectory hinges on the successful Phase 3 launch of elritercept (KER-050) for Myelodysplastic Syndromes (MDS) by its partner Takeda Pharmaceuticals U.S.A., Inc. and the advancement of KER-065 into Phase 2 trials for Duchenne Muscular Dystrophy (DMD).

Competitive Landscape

As a clinical-stage company, Keros Therapeutics holds a 0% product market share in 2025, but its pipeline candidates are set to challenge established treatments in high-value, niche markets. The primary competitive threat comes from first-in-class therapies that target similar mechanisms in hematology and neuromuscular disease.

Opportunities & Challenges

The company's strategic focus is clear: maximize value from its Transforming Growth Factor-beta (TGF-ß) superfamily protein signaling platform. The $375 million capital return program, concluded in November 2025, signals financial strength and a commitment to shareholder value, but the business remains highly dependent on clinical outcomes.

Industry Position

Keros Therapeutics is a well-capitalized, late-stage development biotech, not a commercial-stage pharmaceutical giant. Its position is defined by the promise of its TGF-ß signaling platform and the strength of its partnerships.

• The Takeda partnership for elritercept (KER-050) de-risks the most advanced program, shifting substantial Phase 3 development costs and commercialization burden to a global pharmaceutical leader.
• The company's cash position of nearly $700 million (pre-capital return) provides a defintely long runway, offering flexibility to fund multiple, costly Phase 2 trials for KER-065 without immediate need for dilutive financing.
• With a forecast annual revenue of $246.7 million for the 2025 fiscal year, largely driven by collaboration revenue from Takeda, Keros is an anomaly among clinical-stage peers, showing significant early financial traction.
• Its core competitive advantage is its deep focus on the activin/TGF-ß pathway, which offers a novel mechanism of action (MOA) against conditions like MDS and DMD, potentially providing a superior or complementary option to existing therapies like Reblozyl.

To understand the full financial context of this development stage, you should review Breaking Down Keros Therapeutics, Inc. (KROS) Financial Health: Key Insights for Investors.