 LEXINGTON, Mass., Aug. 13, 2020 GLOBE NEWSWIRE -- Keros Therapeutics, Inc. Keros Nasdaq: KROS, a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel treatments for patients suffering from hematological and musculoskeletal disorders with high unmet medical need, today provided a business update and reported financial results for the second quarter of 2020. By closing our initial public offering in the second quarter of 2020, Keros completed the transition to a public company, said Jasbir S. Seehra, Ph.D., President and Chief Executive Officer. With the net proceeds from the offering and our earlier Series C financing, we believe Keros is well capitalized to allow us to continue to aggressively drive the development of our lead programs through multiple Phase 2 clinical trials planned for the near term.Recent Program Highlights: KER-047 for the treatment of anemia arising from high hepcidin levels and for the treatment of fibrodysplasia ossificans progressiva On August 4, 2020, Keros announced the completion of the planned cohorts for the Phase 1 clinical trial of KER-047, and reported the topline findings from those cohorts. Based upon its preliminary analysis, Keros expects to expand its Phase 1 clinical trial to evaluate an additional two cohorts of healthy volunteers, which will help to further define dosing regimens to inform the design of upcoming Phase 2 clinical trials. Keros continues to expect commencement of a Phase 2 clinical trial in patients with iron-refractory iron deficiency anemia and other anemias with elevated levels of hepcidin, including myelofibrosis, and a Phase 2 clinical trial in patients with FOP, both in the first half of 2021. KER-012 for the treatment of disorders associated with bone loss and for the treatment of pulmonary arterial hypertension An abstract outlining preclinical data on the differentiated mechanism of action of KER-012 has been selected to be presented as an e-Poster at the American Society for Bone and Mineral Research 2020 Annual Meeting, to be held virtually September 11-15, 2020.Second Quarter 2020 Financial ResultsKeros reported a net loss of 10.8 million in the second quarter of 2020 as compared to a net loss of 2.9 million in the second quarter of 2019. The increase in net loss for the second quarter was largely due to increased research and development efforts and increased expenses associated with being a public company.Research and development expenses were 7.3 million for the second quarter of 2020 as compared to 4.5 million for the same period in 2019. The increase of 2.8 million was primarily due to a 2.0 million increase in manufacturing activities for KER-050 to support Keros ongoing clinical trial activities and a 0.7 million increase related to personnel expenses, including additional share-based compensation cost, driven by increased headcount to support the advancement of Keros pipeline.General and administrative expenses were 3.7 million for the second quarter of 2020 as compared to 0.7 million for the same period in 2019. The increase of 3.0 million was primarily due to a 1.4 million increase in personnel expenses, which includes additional share-based compensation costs, to support Keros organizational growth and achievement of its corporate goals and a 1.5 million increase in professional fees to support Keros transition to a public company.Keros cash and cash equivalents as of June 30, 2020 was 144.7 million compared to 54.5 million as of March 31, 2020. Keros expects that the cash and cash equivalents it had on hand at June 30, 2020 will fund its operating expenses and capital expenditure requirements into the second half of 2022.About Keros Therapeutics, Inc.Keros is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel treatments for patients suffering from hematologic and musculoskeletal disorders with high unmet medical need. Keros is a leader in understanding the role of the transforming growth factor-Beta, or TGF-ß, family of proteins, which are master regulators of red blood cell and platelet production as well as of the growth, repair and maintenance of muscle and bone. Keros lead protein therapeutic product candidate, KER-050, is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndromes and in patients with myelofibrosis. Keros lead small molecule product candidate, KER-047, is being developed for the treatment of anemia resulting from elevated levels of hepcidin, the key regulator of iron absorption and recycling, as well as for the treatment of fibrodysplasia ossificans progressiva. Keros third product candidate, KER-012, is being developed for the treatment of disorders associated with bone loss, such as osteoporosis and osteogenesis imperfecta, and for the treatment of pulmonary arterial hypertension.Cautionary Note Regarding Forward-Looking StatementsStatements contained in this press release regarding matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as anticipates, believes, expects, intends, plans, potential, projects, would and future or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include statements concerning: Keros expectations regarding its growth, strategy, progress and timing of its preclinical studies and clinical trials for KER-047, including its regulatory plans; the potential impact of COVID-19 on Keros ongoing and planned preclinical studies, clinical trials, business and operations; Keros plans to present preclinical data at an upcoming conference; and Keros expected cash runway. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Keros limited operating history and historical losses; Keros ability to raise additional funding to complete the development and any commercialization of its product candidates; Keros dependence on the success of its lead product candidates, KER-050 and KER-047; that Keros may be delayed in initiating, enrolling or completing any clinical trials; competition from third parties that are developing products for similar uses; Keros ability to obtain, maintain and protect its intellectual property; Keros dependence on third parties in connection with manufacturing, clinical trials and pre-clinical studies; and risks relating to the impact on our business of the COVID-19 pandemic or similar public health crises.These and other risks are described more fully in Keros filings with the Securities and Exchange Commission SEC, including the Risk Factors section of the Companys Quarterly Report on Form 10-Q, filed with the SEC on May 22, 2020, and its other documents subsequently filed with or furnished to the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, Keros undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.Investor Contact: Julia Balanova 646-378-2936 KEROS THERAPEUTICS, INC. Condensed Consolidated Statements of Operations In thousands, except share and per share data Unaudited THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2020 2019 2020 2019 REVENUE: Research collaboration revenue 2,500 5,000 Total revenue 2,500 5,000 OPERATING EXPENSES: Research and development7,264 4,497 15,791 9,364 General and administrative3,650 654 5,627 1,145 Total operating expenses10,914 5,151 21,418 10,509 LOSS FROM OPERATIONS10,914 2,651 21,418 5,509 OTHER INCOME EXPENSE, NET Interest expense, net1 2 3 4 Research and development incentive income 378 558 Change in fair value of preferred stock tranche obligation 647 1,490 1,251 Other income, net158 69 90 170 Total other income expense, net157 202 1,403 527 Loss before income taxes10,757 2,853 22,821 6,036 Income tax benefit 172 Net loss10,757 2,853 22,649 6,036 Net loss attributable to common stockholdersbasic and diluted10,963 3,303 23,661 6,936 Net loss per share attributable to common stockholdersbasic and diluted0.62 1.44 2.35 3.05 Weighted-average common stock outstandingbasic and diluted17,623,994 2,288,058 10,054,026 2,273,278 KEROS THERAPEUTICS, INC. 