Piper Sandler has reiterated its Overweight rating for Keros Therapeutics (NASDAQ:KROS), with a price target of $105.00, citing the potential of its drug cibotercept to address challenges currently faced by Winrevair, a similar drug for pulmonary arterial hypertension (PAH). The Phase II PAH readout for cibotercept is expected in the second quarter of 2025.
Winrevair's Challenges Create Opportunity
According to Piper Sandler, early experiences from PAH specialists indicate difficulties in accessing and incorporating Winrevair (soteracept) into clinical practice. These challenges include significant efforts required for patient monitoring and dose adjustments, with some centers establishing dedicated clinics to manage these tasks. The complex administration and potential risks associated with Winrevair, such as telangiectasias and bleeding, may hinder its adoption, potentially allowing cibotercept to differentiate itself in the market.
Cibotercept's Potential
Piper Sandler believes that cibotercept has the potential to offer a more favorable profile, leading to smoother integration into clinical settings and better patient management compared to existing treatments. This belief is reflected in their Overweight rating for Keros Therapeutics, indicating confidence in the company's prospects and the potential of cibotercept to establish a significant presence in the PAH treatment landscape.
Keros Therapeutics' Clinical and Financial Progress
Keros Therapeutics has completed patient enrollment for its Phase 2 TROPOS trial, exceeding the initial target with 113 patients enrolled. The trial is evaluating the potential of cibotercept in treating PAH patients, with top-line data expected in the second quarter of 2025. The company also recently appointed Dr. Yung H. Chyung as its new Chief Medical Officer, a strategic move as it prepares for significant clinical milestones. Furthermore, Guggenheim assigned a 'Buy' rating to Keros Therapeutics due to the promise shown by its drug candidates, including elritercept, which is under investigation for treating myelodysplastic syndromes and myelofibrosis.
Financial Health and Market Position
Keros Therapeutics' financial profile reveals a market capitalization of $2.18 billion, reflecting significant investor interest despite its current unprofitability. The company's revenue growth is noteworthy, with an 8037.5% increase over the last twelve months as of Q3 2024. InvestingPro data highlights that Keros holds more cash than debt on its balance sheet, and its liquid assets exceed its short-term obligations, providing financial flexibility as it advances its drug pipeline, including cibotercept. The stock's performance has been impressive, with a 77.34% price total return over the past year.
