Analysts for H.C. Wainwright and SVB Leerink launched coverage of Keros Therapeutics (NASDAQ:KROS) with “buy” and “outperform” ratings, respectively, citing Keros’ pipeline and platform differentiation.
HCW analyst Andrew Fein said that as a pioneer in developing transforming growth factor-beta targeted therapies, Keros is able to rapidly translate biological insights into drug candidates.
The transforming growth factor-beta family of growth factors controls a large number of cellular responses and figures prominently in development and homeostasis of most human tissues.
“Following a strong IPO performance since last month, we believe components of Keros’ pipeline and platform remain underappreciated by the Street,” Mr. Fein said. He set a price target of $50 for Keros, which closed at $28.80 on May 1.
Among other things, he cited the recent approval of Reblozyl from Acceleron Pharma and Bristol-Myers Squibb, which supports the clinical utility of transforming growth factor-beta ligand traps in multiple hematologic diseases and noted that Keros’ KER-050 drug candidate is “clearly differentiated from and likely superior to Reblozyl.”
In addition, he said initial data from a Phase 2 study in myelodysplastic syndromes (MDS), a collection of bone marrow disorders, expected by year-end could be “value-inflecting, all the while providing platform validation for Keros,” Mr. Fein said.
Analyst Thomas Smith of Leerink said that with multiple differentiated attributes, compared with Reblozyl, “we see blockbuster potential for KER-050 in MDS, modeling some $1.9-billion in worldwide peak revenues.” He set a $42 price target for Keros.
Mr. Smith also noted that Keros has developed a “library of ActRII ligand traps capable of tapping into the potential of this complex biology,” including earlier-stage assets, KER-047 and KER-012.
