Keros Therapeutics, Inc. ( KROS )‘s board of directors initiated a formal review process on Thursday to evaluate strategic alternatives, including a sale.

“Consistent with our commitment to taking action to enhance stockholder value, Keros’ board determined to undertake a review of all strategic alternatives available to the Company,” said Jean-Jacques Bienaimé, Lead Independent Director. “During the pendency of the strategic review process, we remain focused on the execution of our strategy.”

Keros intends to provide a preliminary update regarding the status of the process within 60 days.

The company also adopted a limited-duration stockholder rights plan, effective immediately. Investors have been rapidly accumulating common stock, including an individual investor with an 11.2% stake in the company.

In March, Keros Therapeutics ( KROS ) announced initial topline results from the Phase 1 clinical trial of KER-065 in healthy volunteers through the multiple ascending dose treatment period (Day 85).

The company said clinical data from this trial and preclinical data support KER-065’s therapeutic potential for Duchenne muscular dystrophy and other neuromuscular indications.

In its fourth-quarter earnings release, the company reported that cash and cash equivalents as of Dec. 31, 2024, were $559.9 million, and a $200 million upfront payment from the Takeda Agreement is expected to provide a cash runway into 2029.

Price Action: KROS stock is up 16.3% at $12.01 at the last check Thursday.

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