02:27 PM EDT, 04/10/2025 (MT Newswires) -- (Updates with recent share price movement in headline and first paragraph.)

Keros Therapeutics ( KROS ) shares were trading almost 20% higher Thursday after the biotechnology company said its board of directors has begun a formal review to evaluate its strategic alternatives, including a potential sale of the company.

The company's board has hired outside financial and legal advisers to assist a special board committee that will make a recommendation to the rest of the board, it said.

The company said there is no guarantee that this will result in any transaction or strategic outcome and there is no deadline set for completion of the review process. However, Keros plans to provide a preliminary update within 60 days.

Keros also said its board has adopted a limited-duration stockholder rights plan, effective immediately, in response to a significant and rapid accumulation of its common stock by a few investors who have indicated a desire to influence the control of the company.

The board declared a dividend of one preferred share purchase right for each outstanding share of the company's common stock as of April 24. The rights will expire on April 9, 2026.

The rights will become exercisable if an entity, person or group acquires beneficial ownership of 10% or more of Keros' outstanding common stock in a transaction not approved by the board.

Price: 12.37, Change: +2.04, Percent Change: +19.70