By Josh Beckerman
Keros Therapeutics shareholder ADAR1 Capital Management said it plans to withhold votes for board members Mary Ann Gray and Alpna Seth.
"ADAR1 calls for Keros to restructure the business, significantly reduce headcount, return excess capital to stockholders, and ensure the Takeda licensing partnership is managed to maximize value for investors," the investor said.
ADAR1 owns a stake of about 13.3% in Keros.
On April 10, Keros said it would "consider a comprehensive range of strategic alternatives, including but not limited to a sale of the company or other business combination transaction, continued investment in the Company's pipeline, and/or return of excess capital to stockholders."
At that time, Keros also said it adopted a limited-duration stockholder-rights plan, which it said was in response to significant and rapid stock accumulations by investors who indicated a desire to influence the control of Keros.
ADAR1 said April 11 that it believed that safety and efficacy data for KER-012 and KER-065 indicated limited viability for the drugs. It said Keros should consider opportunities to maximize value, including an accelerated share buyback, a 70% reduction in force to minimize cash burn and pursuit of strategic alternatives including a potential sale.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
By Josh Beckerman
Keros Therapeutics shareholder ADAR1 Capital Management said it plans to withhold votes for board members Mary Ann Gray and Alpna Seth.
"ADAR1 calls for Keros to restructure the business, significantly reduce headcount, return excess capital to stockholders, and ensure the Takeda licensing partnership is managed to maximize value for investors," the investor said.
ADAR1 owns a stake of about 13.3% in Keros.
Keros said, "Ultimately, ADAR1's self-serving campaign threatens to distract focus at this critical time from the board's top priority -- completing its review of strategic alternatives to maximize value for all stockholders."
Stockholder feedback including from ADAR1 was considered as the board determined to undertake a formal review process to evaluate strategic alternatives, the biopharmaceutical company said.
Recent initiatives have reinforced its strong cash position and enabled it to fund clinical programs and operations into 2029, according to Keros.
On April 10, Keros said it would "consider a comprehensive range of strategic alternatives, including but not limited to a sale of the company or other business combination transaction, continued investment in the company's pipeline, and/or return of excess capital to stockholders."
At that time, Keros said it adopted a limited-duration stockholder-rights plan in response to significant and rapid stock accumulations by investors who indicated a desire to influence the control of Keros.
ADAR1 said on April 11 that it believed that safety and efficacy data for KER-012 and KER-065 indicated limited viability for the drugs. It said Keros should consider opportunities to maximize value, including an accelerated share buyback, a 70% reduction in force to minimize cash burn and pursuit of strategic alternatives including a potential sale.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 08, 2025 18:21 ET (22:21 GMT)
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