Keros Therapeutics Cuts 45% Staff, Shelves Cibotercept to Fund KER-065 Phase II Trial
Keros Therapeutics cut 45% staff and shelved cibotercept to focus on KER-065 for DMD, plans a phase II trial in Q1 2026 and maintains cash runway into 2028. Shares have risen 85.6% over the year on pipeline progress of KER-065 and elritercept and a strategic review, indicating strong investor optimism.
1. Restructuring and Pipeline Prioritization
Keros Therapeutics has undertaken a comprehensive restructuring, reducing its workforce by approximately 45% to streamline operations and reallocate resources toward its most advanced candidates. As part of this strategic shift, the company has discontinued development of cibotercept and is now singularly focused on KER-065 for Duchenne muscular dystrophy (DMD) and elritercept for related muscle-wasting conditions.
2. Upcoming Phase II Trial and Timeline
The company plans to initiate a Phase II clinical trial of KER-065 in patients with DMD in the first quarter of 2026. This trial will enroll an estimated 60 participants across multiple U.S. and European sites, with primary endpoints assessing muscle function and safety over a 24-week treatment period. Topline data are expected in late 2026.
3. Cash Runway and Financial Health
Following the cost-reduction measures, Keros reports a cash runway extending into 2028. The company ended the most recent quarter with approximately $150 million in cash and short-term investments, sufficient to fund ongoing development programs and planned clinical activities without the need for near-term capital raises.
4. Stock Performance and Investor Sentiment
Keros shares have rallied 85.6% over the past 12 months, reflecting investor enthusiasm for the company’s streamlined pipeline and potential clinical catalysts. Analysts highlight the Phase II initiation and data milestones as key upside drivers for 2026, with a number of buy-side investors revising coverage to reflect the company’s tighter focus and strengthened balance sheet.