Company: KROS
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001664710-25-000089
Chunk: 287

Company: Keros Therapeutics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 287
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 nine months ended September 30, 2025 and 2024, respectively.In connection with the Hansoh Agreement, the Company entered into a clinical product supply agreement (the “Hansoh Supply Agreement”) with Hansoh, effective February 2024. The Company evaluated the Hansoh Supply Agreement and concluded that it was subject to ASC 606, as the Company viewed the Hansoh Supply Agreement as a contract with a customer. As such, the Company assessed the terms of the Hansoh Supply Agreement and identified a single performance obligation for the Company to supply Hansoh with clinical product supply. The Company will recognize revenue at a point in time when control transfers, which is deemed to be at the shipping point when the clinical product supply is ready for shipment. The Company recognized $0.1 million and $0.4 million of other revenue during the three and nine months ended September 30, 2025 and 2024, respectively.Takeda License AgreementOn December 3, 2024, the Company entered into a license agreement with Takeda Pharmaceuticals U.S.A., Inc. ("Takeda"), which became effective on January 16, 2025. Under the terms of the license agreement with Takeda (the "Takeda Agreement"), the Company granted to Takeda the exclusive right to develop, manufacture and commercialize elritercept and certain derivative compounds globally, excluding the territories of mainland China, Hong Kong and Macau (collectively, the "Takeda Territory"). Concurrent with the Takeda Agreement, the Company entered into a separate Transition Services Agreement with Takeda (“TSA”), pursuant to which the Company will provide certain transitional services to Takeda, including, but not limited to, clinical trial and manufacturing services, during the term of the TSA (the "Transition Services"). The term of the TSA is fifteen months and may be extended up to six months under certain circumstances. The Company will receive reimbursement of certain costs incurred by the Company in connection with providing the Transition Services. Pursuant to the terms of the Takeda Agreement, the Company received a $200.0 million upfront payment in February 2025. In July 2025, a one-time $10.0 million development milestone was achieved upon dosing of the first patient in the Phase 3 RENEW clinical trial of elritercept. In addition to the upfront and milestone payments, the Company is entitled to receive up to an aggregate of (i) $80.0 milion upon the achievement