US-based musculoskeletal disorder drug developer Keros Therapeutics filed for an $86.3m initial public offering on Monday that could enable healthcare network Partners Healthcare and pharmaceutical services firm Medison Pharma to exit.
Keros is working on therapeutics that will target the Transforming Growth Factor-Beta protein to treat musculoskeletal and haematological disorders with a high unmet need.
The IPO proceeds will partly be used to fund the progression of the company’s lead drug candidate, KER-050, into phase 2 clinical trials for two types of bone marrow cancer: myelodysplastic syndromes and myelofibrosis.
Additional capital will support the completion of phase 1 trials for another candidate, KER-04, and its entry into phase 2 trials for both different types of anaemia and a rare genetic disease known as FOP. Keros also plans to move a third, KER-012, into clinical studies.
The offering comes after $78.5m in funding for Keros, which most recently completed a $56m series C round in March this year featuring Partners Healthcare subsidiary Partners Innovation Fund and Medison Pharma.
Foresite Capital, OrbiMed, Cowen Healthcare Investments and Venrock co-led the round, which also featured Pontifax, Arkin Bio Ventures and Global Health Sciences Fund.
Keros had previously raised approximately $23m from Medison Pharma, Partners Innovation Fund, Arkin Bio Ventures, Global Health Sciences Fund and GF Securities in a January 2019 round.
Pontifax is the company’s largest investor, with a 32.6% stake, followed by Arkin Bio (14.4%), Foresite Capital (9.9%), Partners Innovation Fund (8.7%) and OrbiMed (8.5%).
Jefferies, SVB Leerink, Piper Sandler and HC Wainwright have been appointed underwriters for the offering, which is slated to take place on the Nasdaq Global Market.
