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Law360 (March 17, 2020, 5:06 PM EDT ) Keros Therapeutics Inc., a venture-backed biotechnology firm developing therapies for hematological and musculoskeletal disorders, filed an $86 million initial public offering amid a dormant IPO market stalled by market turbulence and the coronavirus outbreak.
Lexington, Massachusetts-based Keros, advised by Cooley LLP, did not list in its late Monday filing how many shares it plans to sell or at what price range, which are figures normally released as the IPO process advances. By making its plans public, Keros is able to launch a marketing roadshow in 15 days.
Roadshows, whereby companies travel the country and pitch their offerings to prospective investors before pricing their IPO, have halted given current market and widespread efforts to contain the spread of COVID-19, including a reduction in travel.
Six companies that were eligible to launch IPO roadshows Monday — sales and marketing platform ZoomInfo Technologies Inc., construction management software company Procor Technologies Inc., health care benefits management software firm Accolade Inc., pulmonary medical device maker Pulmonx Corp., and biotechnology companies Oric Pharmaceuticals Inc. and NLS Pharmaceutics Inc. — have not done so.
Plus, at least five more companies that have been eligible to launch roadshows for weeks have pumped the brakes. They include specialty chemicals company Atotech Ltd., industrial technology company Vontier Corp., music publisher Warner Music Group Corp., building products manufacturer The Azek Co. and shoemaker Cole Haan Inc.
Messages requesting comment from Keros regarding its IPO plans were not immediately returned Tuesday. It is not uncommon for companies to wait longer than 15 days, which is a minimum waiting period set by securities law, before starting a roadshow, depending on market conditions.
Keros told regulators that IPO proceeds will fund several drugs under development, including therapies that would treat patients suffering from low blood cell counts. Keros is also developing drugs that would treat forms of anemia, hypertension, bone disorders and metabolic diseases.
The company has yet to generate recurring revenue as none of its products have gained regulatory approval, which is common among many early stage biotechnology firms. Keros is backed by several venture capital funds, led by Pontifax, which holds about a one-third stake in the company, according to its registration statement filed with the U.S. Securities and Exchange Commission. Keros this month announced a $56 million funding round led by new investors Foresite Capital, OrbiMed, Cowen Healthcare Investments and Venrock.
Keros plans to list on the Nasdaq exchange under the symbol KROS. Jefferies LLC, SVB Leerink LLC and Piper Sandler & Co. and H.C. Wainwright & Co. LLC are underwriting the IPO.
A Cooley team led by partners Marc Recht, Ryan Sansom and associates Brandon Fenn and Esther Cho are representing Keros.
A Latham & Watkins LLP team led by partners Peter N. Handrinos and Nathan Ajiashvili are representing the underwriters.
--Editing by Orlando Lorenzo.
For a reprint of this article, please contact reprints@law360.com.
