Adar1 partners increases stake in Keros Therapeutics with $9.1m purchase

ADAR1 Partners, LP, a significant stakeholder in Keros Therapeutics, Inc. (NASDAQ:KROS), has made a substantial investment in the company, according to a recent SEC filing. On April 9, the firm acquired a total of 939,698 shares of Keros Therapeutics’ common stock, valued at approximately $9.1 million. The timing appears strategic, as InvestingPro data shows the stock has surged 22% in the past week, though it remains down nearly 80% from its 52-week high of $72.37.

The purchases were executed at prices ranging from $9.857 to $10.33 per share. This investment increases ADAR1 Partners’ total holdings in Keros to 4,392,737 shares. The transactions reflect ADAR1’s continued confidence in Keros, a pharmaceutical company based in Lexington, Massachusetts. With a current ratio of 21.45 and minimal debt-to-equity of 0.03, InvestingPro analysis shows the company maintains a strong liquidity position.

Keros Therapeutics is engaged in the development of novel treatments for hematologic and musculoskeletal disorders. The company’s stock has been under the watchful eye of investors, particularly given the strategic moves by significant stakeholders like ADAR1 Partners. With analyst price targets ranging from $15 to $76, according to InvestingPro data, the stock shows significant potential upside from its current trading level.

In other recent news, Keros Therapeutics has announced several significant developments. The company is exploring strategic alternatives to maximize stockholder value, which may include a sale or other business transactions. This move is supported by Truist Securities, which maintains a Buy rating on Keros, although it has lowered the price target to $25 from $43. Meanwhile, H.C. Wainwright also adjusted its price target for Keros to $40, citing the paused Phase 2 TROPOS study due to safety concerns but maintaining a Buy rating. Additionally, Keros’s global license agreement with Takeda has become effective, resulting in an upfront payment of $200 million to Keros, which will support its clinical trials and research efforts. However, Cantor Fitzgerald downgraded Keros to Neutral after the company paused dosing in its Phase 2 PAH trial for Cibotercept due to safety issues. Despite these challenges, Keros is expected to present topline data from the trial soon. The company is also reprioritizing KER-065 for development in neuromuscular diseases, highlighting its strategic shift in focus.

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