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Keros Therapeutics, Inc. (KROS) stock has tumbled to a 52-week low, touching down at $9.4 as the biotechnology firm, now valued at $386 million, faces a challenging market environment. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet. This latest price level reflects a significant drop from previous valuations, underscoring a period of bearish investor sentiment towards the company. Over the past year, Keros Therapeutics has seen its stock value erode dramatically, with a 1-year change showing a precipitous decline of -84.76%. The stark decrease highlights the volatility and risks inherent in the biotech sector, as companies like Keros navigate the complex landscape of drug development and regulatory approvals. Despite the decline, analysts maintain optimism with a consensus target significantly above current levels, and investors should note the company's next earnings report is scheduled for May 1, 2025. InvestingPro analysis suggests the stock may be undervalued at current levels, with 12 additional key insights available to subscribers.
In other recent news, Keros Therapeutics has been in the spotlight due to several key developments. The company announced the termination of its Phase 2 TROPOS study for cibotercept, a potential treatment for pulmonary arterial hypertension, following safety concerns related to pericardial effusions. This decision led to multiple analyst firms adjusting their price targets for the company. Piper Sandler reduced its target to $15 while maintaining an Overweight rating, and Oppenheimer lowered its target to $23, keeping an Outperform rating. Meanwhile, H.C. Wainwright also revised its price target to $40, citing the paused Phase 2 TROPOS study and upcoming Phase 1 data for KER-065, which is being developed for neuromuscular diseases.
In a positive turn, Keros Therapeutics finalized a global license agreement with Takeda for the advancement of elritercept, resulting in a $200 million upfront payment. This partnership is expected to provide a strong financial foundation for Keros as it continues its research and development efforts. Cantor Fitzgerald downgraded Keros from Buy to Neutral due to the halted dosing in the PAH trial for cibotercept. Despite these challenges, Keros remains financially robust, with over $700 million in cash, including funds from the Takeda deal. The focus now shifts to KER-065, with updates anticipated in the first quarter of 2025.
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