Company: Keros Therapeutics, Inc.
Symbol: KROS
Description: They are 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.
Shares: 5 million
Price Range: $14.00-$16.00
Market Cap: $255m-$291m
Trade Date: Wednesday, 4/8
Underwriter(s): Jefferies, SVB Leerink, Piper Sandler
Co-Manager(s): HC Wainwright
Terms Added. 4-1-20
04/06/20, 10:10am — Keros Therapeutics, Inc. (KROS) — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is well-oversusbcribed. The underwriter states that the books are scheduled to close today at 4pm in anticipation for a Wednesday debut. The prospectus does not list any license, collaborations or insider buying, however, there is likely to be existing shareholder participation in the offering despite no firm information being on the cover. Existing shareholders include Pontifac (32.6% pre-IPO stake), Arkin Bio (14.4% pre-IPO stake), Foresite Capital (9.9% pre-IPO stake), Partners Innovation Fund (8.7% pre-IPO stake) and OrbiMed (8.5% pre-IPO stake). The company’s lead product candidate is developed for treatment of low blood cell counts and is in Phase II. Their lead small molecule candidate is being developed to treat anemia as well as FOP (rare musculoskeletal disorder). Our sources state the deal was covered prior to launch. Furthermore, the successful debut of last week’s biotech IPO, Zentalis Pharmaceuticals (ZNTL), adds a boost of confidence to the KROS deal. While we do not think that this the Keros Therapeutics’ deal “packs the same punch” as Zentalis, we like the risk-reward profile of this offering at this time. However, our clients are indicating at a much higher clip than they were for Zentalis. Please monitor for potential additional information. Rating = 3.
04/07/20, 10:05am — Keros Therapeutics, Inc. (KROS) — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is multiple-times oversusbcribed. The underwriter is currently guiding pricing to the upper-half of the prevailing $14-$16 range. Additionally, the underwriter states that there is a possibility of an upsize to the transaction. Our strong sources remain engaged in this offering. We very much like the risk-reward prospect of this offering given the strength of the channel check. It is our opinion that this IPO is exhibiting the attributes of a ‘4’ rated IPO, however, due to the current unstable broad market environment, we are electing to maintain our ‘3’ rating on this deal. Rating = 3.
Keros Therapeutics, Inc. (KROS) priced an upsized deal of 6.0mm shares at the high-end of the range, $16.00, and opened at $20.85 for a gain of 30.3% at first trade.
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