Keros Turns A $14.2 Million Quarterly Profit As Takeda License Revenue Reaches $40 Million
Lower administrative costs helped the drug developer, which expects initial Duchenne muscular dystrophy trial data in 2027.
Keros Therapeutics, which develops experimental protein-based drugs, earned a $14.2 million profit in the third quarter, reversing a $7.3 million loss a year earlier. Results released with Thursday's SEC filing put the improvement at approximately $21.4 million, primarily from revenue recognized under its Takeda licensing deal.
Takeda Revenue Outpaces Research Spending
License revenue accounted for $40 million in the quarter, against $10 million a year earlier, according to Keros' unaudited financial results. Diluted earnings were $0.70 per share, versus a $0.18 loss.
Administrative costs provided another lift: spending fell by $3.4 million to $6.7 million, compared with $10.1 million a year earlier. Keros attributed the decline mainly to lower compensation expenses and professional fees.
Research spending moved the other way, reaching $20.5 million from $19.5 million. The company attributed that $1.0 million increase to additional pipeline work, partly offset by lower spending on elritercept as research activities moved to Takeda during 2025.
The profitable quarter did not erase the year-to-date loss. For the first nine months, Keros lost $38.265 million, compared with a $110.475 million profit in the corresponding 2025 period; license revenue over those periods was $40 million and $205.355 million, respectively.
Rinvatercept's Next Readout
Keros' business centers on proteins involved in tissue growth and repair. Rinvatercept is being developed for Duchenne muscular dystrophy and amyotrophic lateral sclerosis, while elritercept targets low blood-cell counts associated with myelodysplastic syndromes and myelofibrosis.
Takeda's license became effective on January 16, 2025, giving it responsibility for developing, manufacturing and commercializing elritercept worldwide except mainland China, Hong Kong and Macau.
The Duchenne muscular dystrophy study started patient dosing in September 2026. Keros expects the first data from that mid-stage rinvatercept trial in the first half of 2027.
Keros also selected KER-206 for investigation as a possible treatment for pathological bone loss. The preclinical candidate is designed to block selected protein signals that influence cells responsible for breaking down and forming bone; Keros believes it could improve bone mass and skeletal integrity.
A research version, RKER-206, was the subject of a nonclinical poster presented in October 2026 at the American Society for Bone and Mineral Research 2026 Annual Meeting.
Cash To Support The Pipeline
Keros had $259.5 million in cash and cash equivalents on September 30, 2026, compared with $287.4 million on December 31, 2025.
KROS shares rose about 2% to $9.61 in Friday trading. That move accompanied a quarterly profit driven chiefly by licensing revenue, while the company's drug programs remain in development.
Under its current operating assumptions, Keros expects its cash to cover operating expenses and capital spending into the second half of 2028.
Sources
- 8-K Filing — Keros Therapeutics, Inc. (KROS) — SEC EDGAR
- Exhibit exhibit991q32026.htm — Keros Therapeutics, Inc. 8-K exhibit — SEC EDGAR
- Keros Therapeutics Reports Recent Business Highlights and — globenewswire.com
