Keros Therapeutics is ending development of a phase 2 candidate designed to treat high blood pressure in the lungs, a move that has triggered layoffs for 45% of the biotech’s team.
The Massachusetts company pulled the plug on a related midphase trial—dubbed Tropos—back in January after observing several safety signals. Now, after viewing all efficacy and safety data from the study, the company is discontinuing development of its investigational treatment in pulmonary arterial hypertension entirely, according to a May 29 release.
The asset at question is cibotercept, a TGF-β inhibitor that Keros will consider for possible testing in other indications after the company’s ongoing strategic review wraps up.
That review includes an assessment of other ongoing development programs and that 45% workforce reduction. Keros will have 85 full-time employees remaining after the cuts, meaning about 70 workers will be laid off.
The reduction in force is expected to occur after a 60-day notice time frame required by the Worker Adjustment and Retraining Notification Act, the company said. Keros expects the reduction to cut costs by about $17 million annually.
The clinical-stage biotech has struggled this year, kicking off 2025 with the announcement that it would be ending Tropos after observing pericardial effusion adverse events, which refers to an excessive buildup of fluid in the sac surrounding the heart.
Then, in April, Keros said it was considering all strategic alternatives, including a sale of the company. Alongside this, the biotech adjusted its stockholder rights plan to inflict a penalty on anyone who accumulates more than 10% of the biotech’s outstanding shares without the board’s approval.
The move was in response to “significant and rapid accumulations” of Keros’ stock by “a number of investors who have indicated a desire to influence the control of Keros,” the company said at the time.
As of March 31, the biotech said it had enough cash to cover operating costs into 2029, according to May filings with the Securities and Exchange Commission. Part of that runway includes a $200 million upfront payment from Takeda stemming from a hematology deal the two inked in December 2024.
Keros is now positioning itself around a phase 1 neuromuscular disease program called KER-065, with an initial focus on Duchenne muscular dystrophy.