On Thursday, Scotiabank (TSX:BNS) analysts revised the price target for Keros Therapeutics (NASDAQ:KROS) shares, reducing it to $41 from the previous $44, while maintaining a Sector Outperform rating.
The adjustment follows Keros Therapeutics' announcement that the TROPOS trial of cibotercept (KER-012) for the treatment of pulmonary arterial hypertension (PAH) is being terminated early due to additional instances of pericardial effusion adverse events.
The company has chosen to halt dosing in the 1.5 mg/kg treatment and placebo arms as a precautionary measure to ensure patient safety.
The decision to end the TROPOS trial comes after the company's earlier voluntary cessation of dosing in the higher 3.0 mg/kg and 4.5 mg/kg treatment cohorts. Despite these setbacks, Keros Therapeutics anticipates presenting topline data from all dose cohorts in the TROPOS trial in the second quarter of 2025.
Scotiabank remains optimistic about the company's prospects, citing the potential for upside with Keros's Takeda-partnered lead asset, elritercept (KER-050), which is expected to begin enrollment in the phase 3 RENEW trial shortly.
The analyst's noted that "there is still potential for upside, in our view, with Takeda partnered lead asset elritercept (KER-050) set to initiate enrollment in the phase 3 RENEW trial soon."
They said, "we maintain our Sector Outperform rating and lower our price target to $41 (from $44 previously) to reflect our decreased PoS for KER-012 in PAH (to 0% from 20% previously)."
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