Keros Therapeutics has shaken up its leadership structure as the biotech attempts to shake off the failure of its blood pressure drug by going all in on an early-stage Duchenne muscular dystrophy (DMD) asset.
The Lexington, Massachusetts-based biotech already halted work on its TGF-β inhibitor cibotercept in pulmonary arterial hypertension (PAH) back in May after stopping a phase 2 study earlier in the year when it showed some patients developing pericardial effusion adverse events, a term for an excessive buildup of fluid in the sac surrounding the heart.
Ending the PAH program in May also involved laying off 70 employees—equivalent to 45% of the company’s workforce.
At the time, Keros shifted its focus to a phase 1 neuromuscular disease program called KER-065 while suggesting it would still consider testing cibotercept in other indications.
But, having wrapped up its strategic review, Keros confirmed in a post-market release Tuesday that it is now abandoning cibotercept entirely. Instead, the company’s sole focus will be KER-065.
The biotech pointed to “robust data” from a phase 1 DMD study, which showed evidence for activin inhibition, as backing up its plans take KER-065 into phase 2. Keros hopes to launch the midstage study in the first quarter of 2026 “subject to positive regulatory interaction.”
To support this “streamlined vision and operational focus,” Keros is rearranging its leadership structure. President and Chief Operating Officer Christopher Rovaldi will leave the company Aug. 18, according to the release, with CEO Jasbir Seehra, Ph.D., adding the president role to his existing duties.
Seehra will, however, relinquish his position as chair of Keros’ board, which will be taken up by Jean-Jacques Bienaimé, Keros’ lead independent director.
Meanwhile, Lorena Lerner, Ph.D., the company's senior vice president for research, has been promoted to chief scientific officer.
“Certain senior vice president roles” have also been eliminated in the restructure, according to Keros, but the release didn’t go into any details of other affected employees.
“By prioritizing our most promising clinical program, we expect Keros to operate with greater precision and urgency to unlock additional value for stockholders,” Seehra said in the release.
“With a refined strategy, streamlined leadership and a strong clinical foundation, we believe we are well-positioned to initiate the next phase of clinical development for KER-065,” he added.
While reeling from the derailment of its phase 2 cibotercept study earlier in the year, Keros said it was considering all strategic alternatives, including a sale of the company. But it sounds like that option is off the table for the time being.
Back in April, the biotech adjusted its stockholder rights plan to inflict a penalty on anyone who accumulates more than 10% of the biotech’s outstanding shares without the board’s approval. The move was in response to “significant and rapid accumulations” of Keros’ stock by “a number of investors who have indicated a desire to influence the control of Keros,” the company said at the time.
Keros ended June with $690.2 million in cash and cash equivalents. Despite plans to return $375 million to stockholders, the company thinks it can fund operations into the first half of 2028.