What happened
Shares of clinical-stage biopharmaceutical company Keros Therapeutics (KROS 0.56%) rose 10.2% this past week, according to data from S&P Global Intelligence. The stock closed at $39.87 last Friday. It opened on Monday at $40.66, then rose to $47.06 on Friday before falling a little bit at the close on Friday at $43.93. The stock has a 52-week low of $24.38 and a 52-week high of $68.29. The company's shares are down more than 24% this year.
So what
Keros didn't release any news this week, but a competitor did make news that affected the stock. Merck announced positive news from its Phase 3 trial for Sotatercept, a therapy designed to treat pulmonary arterial hypertension (PAH). Though it was a competitor's drug, there was a sympathetic reaction to the news because Keros has its own PAH drug in its pipeline.
One analyst for Jefferies even said Keros' KER-012 has a differentiated efficacy and safety potential against Sotatercept and a successful trial for Sotatercept would be a positive sign for Keros. KER-012 is in early-stage trials as a treatment for PAH and bone disorders. The company said last month it plans to begin a phase 2 trial for the drug for PAH early next year.
Now what
Keros focuses on novel treatments for blood and musculoskeletal disorders. The company is not yet profitable. In the second quarter, it lost $27.3 million and said it had $215.6 million in cash, enough to fund operations, through the third quarter of 2024. Besides KER-012, the company has two other therapies in its pipeline, KER-050, to treat low blood counts in various blood diseases, and KER-047 for the treatment of anemia resulting from iron imbalance in blood disorders.
Keros went public in 2020 with an initial public offering. With its therapies still in early trials, the company is definitely a long-term play for investors, with a lot of assumed risk.
