Keros Therapeutics has announced the voluntary suspension of remaining dosing arms in its Phase 2 TROPOS trial investigating cibotercept for pulmonary arterial hypertension (PAH), following the emergence of additional cases of pericardial effusion. The decision marks a significant setback in the development program of this experimental therapy.
Safety Concerns Prompt Trial Suspension
The trial halt was triggered by multiple instances of pericardial effusion, a condition where excess fluid accumulates in the space around the heart. This safety signal has raised concerns about the drug's risk-benefit profile in PAH patients, leading to the company's proactive decision to suspend further dosing.
Market Response and Analyst Perspectives
The announcement has led to significant market pressure on Keros Therapeutics' stock (NASDAQ: KROS). In response, BofA analyst Jason Zemansky has adjusted the firm's price target on Keros Therapeutics to $32 from $33, while maintaining a Buy rating on the shares.
"The market reaction appears overdone," notes Zemansky in a research note to investors. The analyst points out that beyond the immediate trial uncertainties, there were already existing questions about cibotercept's commercial potential and value proposition in the PAH indication.
Commercial Implications
The development raises questions about cibotercept's future in the PAH treatment landscape. According to BofA's analysis, the commercial value for the PAH indication was not considered significant in their overall valuation of Keros Therapeutics, suggesting that while the trial suspension represents a setback, it may have limited impact on the company's long-term prospects.
Clinical Development Outlook
While the trial suspension represents a significant challenge for cibotercept's development in PAH, the company will need to carefully evaluate the safety data and consult with regulatory authorities to determine the next steps for the program. The occurrence of pericardial effusion will likely require thorough investigation to understand the mechanism and potential risk factors before any decisions about program continuation can be made.
