Company: KROS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001664710-25-000070
Chunk: 424

Company: Keros Therapeutics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 424
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 million.

Recent Significant Developments

In May 2025, we announced topline data from the TROPOS trial, a Phase 2 clinical trial of cibotercept (KER-012) in combination with background therapy in patients with pulmonary arterial hypertension, or PAH. Following the analysis of all available safety and efficacy data from the TROPOS trial, we decided to discontinue all development of cibotercept in PAH. Consistent with our data-driven operating model and as part of our ongoing portfolio management, we have further determined to deprioritize cibotercept, and will pause all material, internal development activities associated with this asset. We continue to evaluate strategic partnerships and/or other transactions to reevaluate development of cibotercept.

On May 28, 2025, our board of directors formally approved a plan to reduce our overall workforce by approximately 45%, or the 2025 Restructuring. We expect to incur one-time cash charges associated with the 2025 Restructuring of approximately $3.2 million related to employee severance payments and related costs, the majority of which were incurred in the second quarter of 2025. In addition, in connection with the 2025 Restructuring, we committed to pay one-time employee retention costs to certain employees of up to approximately $0.4 million, which we began incurring in the second quarter of 2025 and expect to incur through the fourth quarter of 2025. We expect the 2025 Restructuring will be substantially complete by the fourth quarter of 2025.

The estimates of the charges and expenditures that we expect to incur in connection with the 2025 Restructuring, and the timing thereof, are subject to several assumptions and the actual amounts incurred may differ materially from these estimates. In addition, we may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the 2025 Restructuring.

In June 2025, we announced a plan to return $375.0 million in excess capital to stockholders. The terms and structure of this capital return remain under consideration by our board of directors and are expected to be announced at a future date.

Known Trends, Events and Uncertainties

While recent trends towards rising inflation have eased, prices continue to rise, which may also materially affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies relating to