Keros Starts Rinvatercept Phase 2 in Muscular Dystrophy

The Tip Desk · August 3, 2026 · 2 min read

Cash and cash equivalents stood at $257.6 million as of June 30, 2026, a level the company said would fund operations into the first half of 2028.

Keros Therapeutics (KROS), a clinical-stage biopharmaceutical company developing TGF-β protein therapeutics, said it had initiated a Phase 2 clinical trial of rinvatercept in patients with Duchenne muscular dystrophy, a milestone it had previously expected to commence in the second quarter of 2026.

President and Chief Executive Officer Jasbir S. Seehra said the start of the trial marked an important milestone in the program. In a Phase 1 study in healthy volunteers, the company said rinvatercept showed pharmacological activity through increases in muscle mass and bone mineral density and a decrease in fat mass. Keros continues to expect to present initial data in the first half of 2027.

The company’s lead candidate, rinvatercept, is being developed for DMD and amyotrophic lateral sclerosis. Its most advanced candidate, elritercept, is being developed for cytopenias in myelodysplastic syndrome and myelofibrosis. In the first quarter, Keros said partner Takeda planned to advance elritercept into a Phase 3 trial for anemia in myelofibrosis.

For the quarter ended June 30, 2026, Keros reported a net loss of $28.7 million, or $1.45 a share, compared with a net loss of $30.7 million, or $0.76 a share, a year earlier. The company attributed the $2.0 million year-over-year improvement primarily to revenue recognized in 2025 related to its license agreement with Takeda and to decreased research and development efforts.

Total revenue was zero in the second quarter, versus $18.2 million of service and other revenue in the year-ago quarter; license revenue was zero in both periods.

Research and development expenses were $22.3 million, down from $43.5 million a year earlier. Keros said the $21.2 million decrease was primarily due to the transition of elritercept-related research and development expenses to Takeda and the corporate restructuring completed in 2025. General and administrative expenses were $8.6 million, down from $14.5 million a year earlier, which the company attributed to lower professional fees and lower compensation after the restructuring.

Sequentially, the net loss widened from $23.7 million in the first quarter of 2026. Research and development expenses rose to $22.3 million from $16.1 million in the prior quarter. General and administrative expenses fell to $8.6 million from $10.1 million.

Cash and cash equivalents were $257.6 million as of June 30, 2026, down from $281.5 million at March 31, 2026 and from $287.4 million at year-end 2025. Based on current operating assumptions, Keros said that cash is expected to fund operating expenses and capital expenditure requirements into the first half of 2028.

The company said it looks forward to the progression of the Phase 2 trial and continues to expect initial data in the first half of 2027.