initial public offerings (IPOs) trading on American exchanges

Wednesday, April 8, 2020

Keros Therapeutics (KROS) began trading on the Nasdaq on Wed 8 Apr 2020

Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of novel treatments for patients suffering from hematological and musculoskeletal disorders with high unmet medical need.
  • Sector: Healthcare
  • Industry: Biotechnology
  • Full Time Employees: 23
  • Founded in 2015 
  • Headquartered in Lexington, Massachusetts.

Oncology biotech Keros Therapeutics priced its upsized IPO at the high end to raise $96 million at a $325 million fully diluted market cap (+12% vs. original midpoint). The company priced its IPO at a 19% premium to its last capital raise in March 2020, and it believes its cash balance of $149 million will last into the 2H22. Keros’ lead candidate, KER-050, is beginning a Phase 2 trial for anemia and thrombocytopenia associated with myelodysplastic syndromes (MDS). The company believes KER-050 will treat all stages of MDS, making it superior to current therapies. Keros finished the week up 35%.

The IPO Index jumped 11.3% this past week, compared to a 10.4% increase for the S&P 500. The Index's top performers were Levi Strauss (LEVI; +45% this week), Farfetch (FTCH; +42%), StoneCo (STNE; +41%), Allakos (ALLK; +40%), PPD (PPD; +38%), and Lyft (LYFT; +38%). The Vix Volatility Index settled to its lowest level in a month; if this trend continues, we could see IPO volume begin to normalize by summer.

The IPO provides Keros with $96 million to advance the development of its investigational drugs for patients with blood and musculoskeletal disorders. The drugs that Keros is developing target a family of proteins called TGF-beta, signaling pathways that regulate red blood cell and platelet production, and growth, repair, and maintenance of muscle and bone.

The company plans to use the IPO proceeds to advance its clinical-stage drug candidates into mid-stage trials. The funds will allow it to start two Phase 2 trials of KER-050, in patients with myelodysplastic syndrome and in patients with myelofibrosis. The funds will also support KER-047 through an ongoing Phase 1 clinical trial and into two Phase 2 clinical trials, one in patients with anemia resulting from high hepcidin levels, and one in patients with fibrodysplasia ossificans progressiva, a rare disease in which skeletal muscle and connective tissue are gradually replaced by bone.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/8/20, the Renaissance IPO Index was down 14.2% year-to-date, while the S&P 500 was down 14.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Spotify (SPOT). The Renaissance International IPO Index was down 9.9% year-to-date, while the ACWX was down 21.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.The article US IPO Weekly Recap: Keros Therapeutics rises 35% as biotechs beat the IPO shutdown originally appeared on IPO investment manager Renaissance Capital's web site

No comments:

Post a Comment