Adar1 capital management increases stake in Keros Therapeutics with $328k purchase

ADAR1 Capital Management, LLC has expanded its holdings in Keros Therapeutics, Inc. (NASDAQ:KROS) with a substantial acquisition of common stock. The investment firm purchased a total of 87,258 shares on April 9, 2025, at an average price of $9.3952 per share, amounting to a total investment of approximately $328,127. The stock, currently trading at $12.18, has shown remarkable resilience with a 22% gain over the past week, despite being down nearly 80% over the previous six months. According to InvestingPro data, analyst price targets range from $15 to $76, suggesting potential upside.

This move was part of a series of transactions by ADAR1 Partners, LP, which now holds a significant number of shares in the biopharmaceutical company. The purchases were executed at prices ranging from $9.21 to $9.56 per share.

In addition to this acquisition, ADAR1 Capital Management also engaged in equity swaps, further adjusting its portfolio in Keros Therapeutics. These transactions reflect the firm’s strategic positioning in the life sciences sector.

In other recent news, Keros Therapeutics announced it is exploring strategic alternatives to enhance stockholder value, which may include a sale or other business combinations. This development was accompanied by the adoption of a stockholder rights plan to prevent any group from gaining control without offering a premium to all stockholders. Truist Securities maintained a Buy rating on Keros, though it reduced its price target from $43 to $25, citing the company’s undervaluation and strong cash position. Additionally, H.C. Wainwright adjusted its price target for Keros to $40, maintaining a Buy rating, while noting the importance of upcoming clinical data for KER-065 and the potential impact of the company’s partnership with Takeda.

Keros’s collaboration with Takeda became effective, bringing an upfront payment of $200 million, which strengthens Keros’s financial foundation for advancing its clinical trials. However, Cantor Fitzgerald downgraded Keros from Buy to Neutral following a pause in its Phase 2 trial for Cibotercept due to safety concerns. Despite these challenges, Keros plans to present topline data from the trial in the second quarter. The company is also focusing on expanding its pipeline, supported by a robust balance sheet, including the funds from Takeda.

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