Keros Posts Profit After Takeda License Revenue

The Tip Desk · November 5, 2026 · 3 min read

The company reported $40.0 million of license revenue and $14.2 million of net income for the quarter ended September 30, 2026.

Keros Therapeutics, Inc. (KROS), a clinical-stage biopharmaceutical company developing therapeutics for disorders linked to transforming growth factor-beta signaling, reported net income of $14.2 million for the quarter ended September 30, 2026, reversing a $28.7 million net loss in the prior quarter.

The company said the approximately $21.4 million improvement versus a $7.3 million net loss in the third quarter of 2025 was primarily due to revenue recognized in 2026 related to its license agreement with Takeda. Total revenue was $40.0 million, including $40.0 million of license revenue and $9 thousand of service and other revenue, compared with $14.3 million of total revenue a year earlier. License revenue was $40.0 million, up from $10.0 million in the year-ago quarter, while service and other revenue fell to $9 thousand from $4.3 million.

Research and development expenses were $20.5 million, up $1.0 million from $19.5 million a year earlier. The company said the increase was primarily due to additional research and development efforts to support pipeline advancement, partially offset by decreased elritercept-related research and development expenses as those activities transitioned to Takeda during 2025. General and administrative expenses were $6.7 million, down from $10.1 million a year earlier, which the company attributed primarily to lower compensation costs and professional fees.

Cash and cash equivalents were $259.5 million as of September 30, 2026. Based on current operating assumptions, Keros said that cash will enable it to fund operating expenses and capital expenditure requirements into the second half of 2028. That runway was later than the first-half-of-2028 outlook the company had given as of June 30, 2026 and March 31, 2026.

In September 2026, Keros announced that the first patient was dosed in a Phase 2 clinical trial of rinvatercept in patients with Duchenne muscular dystrophy, after initiating that trial in the second quarter. The company expects to announce initial data from the trial in the first half of 2027. Rinvatercept is also being developed for amyotrophic lateral sclerosis. Elritercept remains the most advanced product candidate, with Takeda developing it for cytopenias in myelodysplastic syndrome and myelofibrosis.

In October 2026, Keros nominated KER-206, a novel ligand trap designed to bind select TGF-β ligands to regulate bone remodeling, from its nonclinical pipeline for further investigation. The company presented a nonclinical poster on a research version of the asset, RKER-206, at the American Society for Bone and Mineral Research 2026 Annual Meeting. KER-206 is designed to bind activin A, activin B, GDF8 and GDF11, which regulate bone remodeling through effects on osteoclasts and osteoblasts. Through inhibition of those ligands, the company said KER-206 has the potential to increase bone mass and improve skeletal integrity in disorders characterized by pathological bone loss.

President and Chief Executive Officer Jasbir S. Seehra said the company is advancing its pipeline across clinical and nonclinical development and remains focused on disciplined execution of strategic priorities.