Company: KROS
Filing Date: 2025-05-09
Form Type: DEFA14A
Source: 0001104659-25-046272
Chunk: 1

Company: Keros Therapeutics, Inc.
Filing Date: 2025-05-09
Form: DEFA14A
Chunk 1
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signaling of the transforming growth factor-beta (“TGF-ß”) family of proteins,today issued the following
statement in response to the misleading press release issued by ADAR1 Capital Management (“ADAR1”) regarding Keros’ upcoming 2025
Annual Meeting of Stockholders (the “2025 Annual Meeting”), currently scheduled for June 4, 2025:

The Board is committed to acting in the best interests of
the Company and all of its stockholders. In line with this commitment, Keros values the views of its stockholders and has a proactive
engagement program in place to ensure that their perspectives are incorporated into the Board’s decision-making process. To that
end, feedback gathered from stockholders – including ADAR1 – was considered as the Board determined to undertake a formal
review process to evaluate strategic alternatives to maximize stockholder value, led by a strategic committee consisting of independent
and disinterested directors (the “Strategic Committee”), as previously announced on April 10, 2025.

The Strategic Committee, with the assistance of outside financial
and legal advisors, intends to consider a comprehensive range of strategic alternatives, including but not limited to a sale of the Company
or other business combination transaction, continued investment in the Company’s pipeline, and/or return of excess capital to stockholders.

While the Board evaluates strategic alternatives, Keros’
directors remain highly engaged in developing and overseeing the execution of the Company’s strategy to enhance value for stockholders.
Recent strategic initiatives have reinforced our strong cash position and enabled us to fund our clinical programs and operations into
2029 as we continue to develop differentiated product candidates. For example, our exclusive license agreement with Takeda Pharmaceuticals
U.S.A., Inc., which secured a $200 million upfront payment and the potential to receive development, commercial and sales milestones
of up to $1.1 billion along with tiered annual net sales royalties, provides us with a potential recurring capital source which could
drive further value creation.

Against this backdrop, in the weeks leading up to its press release today, ADAR1 has embarked on an aggressive campaign aimed at forcing
the Board to immediately return capital to stockholders instead of properly evaluating strategic alternatives through the Board's ongoing
strategic review process. After a number of private and public threats, most recently ADAR1 notified Keros that it would publicly oppose
the re-election of Mary Ann Gray, Ph.D and Alpna Seth, Ph.D, two highly qualified and experienced independent directors,