Press Releases August 3, 2026 04:01 PM

Keros Therapeutics Reports Second Quarter 2026 Financial Results

Keros Therapeutics advances DMD treatment with Phase 2 trial start, reports Q2 2026 financials showing reduced losses and solid cash runway.

By Sofia Navarro
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Keros Therapeutics announced the initiation of a Phase 2 clinical trial for rinvatercept in treating Duchenne muscular dystrophy (DMD), following promising Phase 1 results showing increased muscle and bone mass and decreased fat mass. The company reported a net loss of $28.7 million for Q2 2026, an improvement from the prior year, driven by decreased R&D expenses and corporate restructuring. Keros holds $257.6 million in cash, sufficient to fund operations into mid-2028. The focus remains on developing treatments targeting disorders linked to TGF-β signaling, including muscle and blood diseases.

Keros Therapeutics Reports Second Quarter 2026 Financial Results
KROS
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Key Points

  • Initiation of Phase 2 clinical trial for rinvatercept targeting Duchenne muscular dystrophy, a significant milestone in the drug's development.
  • Substantial reduction in research and development expenses due to transition of elritercept program to Takeda and corporate restructuring completed in 2025.
  • Strong cash position of $257.6 million provides financial runway to support ongoing operations through the first half of 2028, underpinning continued clinical development efforts.

LEXINGTON, Mass., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Keros Therapeutics, Inc. (“Keros” or the “Company”) (Nasdaq: KROS), a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta (“TGF-ß”) family of proteins, today provided a business update and reported financial results for the quarter ended June 30, 2026.

“We are excited to have initiated our Phase 2 clinical trial evaluating the treatment of rinvatercept in patients with Duchenne muscular dystrophy (“DMD”), marking an important milestone in the development of our program,” said Jasbir S. Seehra, Ph.D., President and Chief Executive Officer. “In our Phase 1 clinical trial in healthy volunteers, rinvatercept demonstrated robust pharmacological activity observed through increases in muscle mass and bone mineral density, alongside a decrease in fat mass. We look forward to the progression of the Phase 2 clinical trial, and continue to expect to present initial data in the first half of 2027.”

Second Quarter 2026 Financial Results

Keros reported a net loss of $28.7 million in the second quarter of 2026 as compared to a net loss of $30.7 million in the second quarter of 2025. The decrease of $2.0 million was primarily due to revenue recognized in 2025 related to Keros' license agreement with Takeda and decreased research and development efforts.

Research and development expenses were $22.3 million for the second quarter of 2026 as compared to $43.5 million for the same period in 2025. The decrease of $21.2 million was primarily due to the transition of elritercept-related research and development expenses to Takeda and the corporate restructuring that was completed in 2025.

General and administrative expenses were $8.6 million for the second quarter of 2026 as compared to $14.5 million for the same period in 2025. The decrease of $5.9 million was primarily due to a decrease in professional fees and a decrease in compensation costs in connection with the 2025 corporate restructuring.

Keros’ cash and cash equivalents as of June 30, 2026 was $257.6 million compared to $287.4 million as of December 31, 2025. Based on current operating assumptions, Keros expects that its cash and cash equivalents as of June 30, 2026 will enable Keros to fund its operating expenses and capital expenditure requirements into the first half of 2028.

About Keros Therapeutics, Inc.

Keros is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the TGF-ß family of proteins. Keros is a leader in understanding the role of the TGF-ß family of proteins, which are master regulators of the growth, repair and maintenance of a number of tissues, including skeletal muscle, bone, adipose, heart tissue and blood. By leveraging this understanding, Keros has discovered and is developing protein therapeutics that have the potential to provide meaningful and potentially disease-modifying benefit to patients. Keros’ lead product candidate, rinvatercept, is being developed for the treatment of DMD and for the treatment of amyotrophic lateral sclerosis. Keros’ most advanced product candidate, elritercept, is being developed for the treatment of cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndrome and in patients with myelofibrosis.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “continue”, “expect”, “plan”, “look forward to”, “will”, “potential” or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include statements concerning: Keros’ expectations regarding its growth, strategy, progress and the design, objectives and timing of its clinical trials for rinvatercept; and Keros’ expected cash runway. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Keros’ limited operating history and historical losses; Keros’ ability to raise additional funding to complete the development and any commercialization of its product candidates; Keros’ dependence on the success of its product candidates, rinvatercept and elritercept; that Keros may be delayed in initiating, enrolling or completing any clinical trials; competition from third parties that are developing products for similar uses; Keros’ ability to obtain, maintain and protect its intellectual property; and Keros’ dependence on third parties in connection with manufacturing, clinical trials and preclinical studies.

These and other risks are described more fully in Keros’ filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 14, 2026, and its other documents subsequently filed with or furnished to the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, Keros undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor Contact:

Justin Frantz
[email protected]
617-221-6042

KEROS THERAPEUTICS, INC.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)     THREE MONTHS
ENDED JUNE 30,
 SIX MONTHS
ENDED JUNE 30,
 2026   2025   2026   2025 REVENUE:       Service and other revenue —   18,168   367   34,059 License revenue —   —   —   195,355 Total revenue —   18,168   367   229,414 OPERATING EXPENSES:       Research and development (22,331)  (43,503)  (38,428)  (92,212)General and administrative (8,606)  (14,482)  (18,753)  (24,979)Total operating expenses (30,937)  (57,985)  (57,181)  (117,191)INCOME (LOSS) FROM OPERATIONS (30,937)  (39,817)  (56,814)  112,223 OTHER INCOME (EXPENSE), NET       Dividend income 2,287   7,120   4,622   13,912 Other expense, net (60)  (221)  (226)  (559)Total other income, net 2,227   6,899   4,396   13,353 Income (loss) before income taxes (28,710)  (32,918)  (52,418)  125,576 Income tax (provision) benefit —   2,222   —   (7,821)Net income (loss)$(28,710) $(30,696) $(52,418) $117,755         Net income (loss) attributable to common stockholders—basic and diluted$(28,710) $(30,696) $(52,418) $117,755         Weighted-average shares of common stock outstanding — basic 19,800,322   40,612,907   19,715,585   40,586,279 Weighted-average shares of common stock outstanding — diluted 19,800,322   40,612,907   19,715,585   41,153,758         Net income (loss) per share of common stock — basic$(1.45) $(0.76) $(2.66) $2.90 Net income (loss) per share of common stock — diluted$(1.45) $(0.76) $(2.66) $2.86                 


KEROS THERAPEUTICS, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)     JUNE 30,
2026 DECEMBER 31,
2025ASSETS   CURRENT ASSETS:   Cash and cash equivalents257,606  287,415 Accounts receivable—  3,567 Prepaid expenses and other current assets7,027  22,202 Current income tax receivable2,250  2,250 Total current assets266,883  315,434 Operating lease right-of-use assets15,553  16,841 Property and equipment, net3,715  4,297 Restricted cash1,449  1,449 TOTAL ASSETS287,600  338,021 LIABILITIES AND STOCKHOLDERS' EQUITY   CURRENT LIABILITIES:   Accounts payable1,816  1,967 Current portion of operating lease liabilities2,597  2,408 Accrued expenses and other current liabilities7,740  16,039 Total current liabilities12,153  20,414 Operating lease liabilities, net of current portion13,127  14,475 Total liabilities25,280  34,889 STOCKHOLDERS' EQUITY:   Preferred stock, par value of $0.0001 per share; 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025; no shares issued and outstanding—  — Series A junior participating preferred stock, par value of $0.0001 per share; 500,000 authorized as of June 30, 2026 and December 31, 2025; no shares issued and outstanding—  — Common stock, par value of $0.0001 per share; 200,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 40,953,948 shares issued and 19,827,188 shares outstanding as of June 30, 2026 and 40,670,466 shares issued and 19,543,706 shares outstanding as of December 31, 20254  4 Treasury stock, at cost; 21,126,760 shares as of June 30, 2026 and December 31, 2025(384,558) (384,558)Additional paid-in capital1,181,057  1,169,451 Accumulated deficit(534,183) (481,765)Total stockholders' equity262,320  303,132 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY287,600  338,021       

Risks

  • Dependence on successful clinical development and approval of rinvatercept and other product candidates, with inherent clinical trial risks and potential delays.
  • Risk of requiring additional financing to complete development and commercialization activities, given continued net losses.
  • Competition from other companies developing treatments for similar diseases, which could impact market potential and commercial success.

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