Keros Therapeutics, Inc. has announced a significant global licensing agreement with Takeda to advance the development and commercialization of elritercept, a drug currently in Phase 2 clinical trials for myelodysplastic syndrome (MDS) and myelofibrosis (MF). Under the terms of the agreement, Keros will receive a $200 million upfront payment and is eligible for additional milestone payments that could exceed $1.1 billion, along with tiered royalties on net sales. This partnership is expected to extend Keros' operational runway into the fourth quarter of 2028, providing the company with substantial financial flexibility to further develop its pipeline.
Despite the positive financial implications of this deal, Keros' stock is experiencing a decline. The agreement, while lucrative, involves Keros relinquishing control over the development and commercialization of elritercept to Takeda, which may have raised concerns among investors about the company's future autonomy and strategic direction. Additionally, the deal is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, introducing an element of uncertainty regarding its execution.
Keros Therapeutics' stock is currently trading at $56.05, down 1.2% from the previous close of $56.73.