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Keros Therapeutics vs. Dyne: Which DMD Biotech Has More Upside?
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Key Takeaways
KROS is advancing KER-065 for DMD, with FDA orphan drug status and a phase II trial planned for early 2026.
DYN reported positive data for z-rostudirsen, showing dystrophin gains and functional improvements in DMD.
DYN held $791.9M in cash as of Sept. 2025, funding operations into Q3 2027, alongside multiple programs.
Keros Therapeutics (KROS - Free Report) is a clinical-stage biopharmaceutical company developing innovative therapies for patients with disorders caused by abnormal signaling within the transforming growth factor-beta (TGF-β) protein family.
Dyne Therapeutics (DYN - Free Report) is a clinical-stage company focused on treatments for people living with genetically driven neuromuscular diseases.
With both companies advancing promising pipeline candidates, choosing between the two stocks can be challenging for investors. In this context, a careful comparison of their respective strengths, risks, and growth potential can help a more thoughtful investment decision. Let’s take a closer look.
The Case for KROS
KROS is focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta, or TGF-ß, family of proteins.
The recent pipeline progress has been encouraging. Lead product candidate, KER-065, is designed to bind to and inhibit TGF-ß ligands, including myostatin (GDF8) and activin A, which are negative regulators of muscle and bone mass and strength. The company is advancing KER-065 for the treatment of neuromuscular disorders, initially targeting Duchenne muscular dystrophy (DMD).
In March 2025, Keros reported initial top-line results from a phase I study of KER-065 in healthy volunteers. In August 2025, it announced that the FDA granted orphan drug designation for KER-065 for the treatment of DMD.
The company plans to begin a phase II trial in patients with DMD in the first quarter of 2026 and explore additional indications where KER-065’s mechanism of action is believed to have a strong potential for clinical success.
Keros also plans to pursue additional indications where KER-065’s mechanism of action has a high likelihood of clinical success.
In December 2024, Keros Therapeutics entered into an exclusive license agreement with Takeda Pharmaceuticals to develop, manufacture, and commercialize its second pipeline candidate elritercept worldwide, excluding mainland China, Hong Kong and Macau. The agreement, which turned effective on Jan. 16, 2025, provides Keros with funds in the form of milestone payments.
A phase III study, RENEW, is evaluating elritercept for the treatment of anemia and thrombocytopenia in patients with very low-, low-, or intermediate-risk myelodysplastic syndromes (MDS).
In July 2025, the company announced that the first patient had been dosed in the RENEW study, triggering a $10 million milestone payment to Keros under its global licensing agreement with Takeda.
Another phase II study, RESTORE, is evaluating elritercept in patients with myelofibrosis-associated cytopenias.
Meanwhile, Keros has taken deliberate steps to sharpen its strategic focus and strengthen capital efficiency. The company was previously advancing cibotercept for pulmonary arterial hypertension, but in August 2025, it discontinued the program and redirected resources toward its lead asset, KER-065, which currently appears to offer more compelling potential.
To support this realignment, management implemented a workforce reduction of approximately 45%, resulting in a streamlined organization of about 85 full-time employees. These actions are expected to generate average annualized cost savings of roughly $17 million. In parallel, Keros announced board and leadership changes in August 2025 to reinforce a leaner operating structure and tighter strategic execution.
As of Sept. 30, 2025, the company had $693.5 million in cash and cash equivalents. After accounting for $375.0 million of excess capital that the board has committed to return to stockholders, management expects the remaining cash to be sufficient to fund operating and capital expenditure needs into the first half of 2028.
The Case for DYN
Dyne is a clinical-stage company focused on delivering functional improvement for people living with genetically driven neuromuscular diseases.
Using its proprietary FORCE platform, the company has assembled a broad portfolio of product candidates, including product candidates being developed for myotonic dystrophy type (DM1), DMD, facioscapulohumeral dystrophy (FSHD) and Pompe disease.
The company is evaluating zeleciment rostudirsen (z-rostudirsen, also known as DYNE-251) in DMD.
Z-rostudirsen is an investigational therapeutic being evaluated in the phase I/II global DELIVER study for individuals with DMD who have mutations in the DMD gene that are amenable to exon 51 skipping.
Last month, the company reported positive top-line results from the Registrational Expansion Cohort (“REC”) of the DELIVER study. The REC met its primary endpoint, demonstrating a statistically significant increase in muscle content-adjusted dystrophin expression to 5.46% of normal at six months (p<0.0001).
Beyond biomarker data, z-rostudirsen showed encouraging functional benefits. Improvements versus placebo were observed across all six prespecified functional endpoints, including Time to Rise velocity and 10-Meter Walk/Run velocity, both of which reached nominal statistical significance despite the study not being powered for functional outcomes. Importantly, lung function — as measured by forced vital capacity percent predicted — was preserved at six months, addressing a key driver of morbidity and mortality in DMD.
Dyne plans to submit a biologics license application seeking accelerated approval of the candidate for DMD in the second quarter of 2026.
Z-rostudirsen has received Breakthrough Therapy Designation from the FDA and Orphan Drug Designation in Japan.
Meanwhile, the company’s other candidate zeleciment basivarsen, or z-basivarsen (also known as DYNE-101) is being evaluated in the phase I/II ACHIEVE study for DM1.
The company participated in a type C meeting with the FDA in May 2025 and discussed the path to regulatory approval, including accelerated approval for z-basivarsen in DM1. Consequently, the company submitted a revised protocol for review in June 2025 for the REC of the ACHIEVE study.
In June 2025, the FDA granted Breakthrough Therapy Designation to z-basivarsen for the treatment of DM1.
The company is also evaluating DYNE-302 for FSHD, which demonstrated robust and durable DUX4 suppression and functional benefit in a mouse model. The company is progressing DYNE-302 through IND/CTA-enabling studies.
DYN is also developing a product candidate, DYNE-401, to deliver an enzyme replacement therapy to address the deficiency of the lysosomal enzyme, GAA, which causes Pompe disease.
As of Sept. 30, 2025, Dyne had cash, cash equivalents and marketable securities of $791.9 million. The company continues to expect that this cash balance will be sufficient to fund its operations into the third quarter of 2027.
A Look at Estimates: KROS versus DYN
The Zacks Consensus Estimate for KROS’ 2025 earnings per share (EPS) suggests an improvement of 145%. EPS estimates for 2025 and for 2026 have moved north in the past 60 days.
KROS’ Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DYN’s 2025 EPS suggests a decline of 2.67%. EPS estimates for both 2025 and 2026 have moved north in the past 60 days.
DYN’s Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of KROS and DYN
From a price-performance perspective, KROS has fetched better returns than DYN in the past year. Shares of KROS have surged 63.9%, while those of DYN have risen 31.7%. The industry has risen 15.8% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, KROS is relatively cheaper than DYN. KROS’s shares currently trade at 0.81X trailing 12-month book value, lower than 3.72X for DYN.
Image Source: Zacks Investment Research
Which Stock Is a Better Pick for Now?
Selecting a winning stock in the highly volatile biotech sector is inherently challenging, as it often takes many years for companies to achieve profitability. Biotechnology companies typically commit hundreds of millions, and in some cases billions, to the development of innovative therapies, leading to substantial research and development expenditures.
As a result, investors in clinical-stage companies primarily base their decisions on the strength of the pipeline and its long-term potential. DMD is itself a particularly competitive and complex therapeutic area.
Keros has made notable progress with its lead DMD candidate. Any positive clinical or regulatory update related to KER-065 could serve as a meaningful catalyst and provide a significant upside driver for KROS shares.
Image: Bigstock
Keros Therapeutics vs. Dyne: Which DMD Biotech Has More Upside?
Key Takeaways
Keros Therapeutics (KROS - Free Report) is a clinical-stage biopharmaceutical company developing innovative therapies for patients with disorders caused by abnormal signaling within the transforming growth factor-beta (TGF-β) protein family.
Dyne Therapeutics (DYN - Free Report) is a clinical-stage company focused on treatments for people living with genetically driven neuromuscular diseases.
With both companies advancing promising pipeline candidates, choosing between the two stocks can be challenging for investors. In this context, a careful comparison of their respective strengths, risks, and growth potential can help a more thoughtful investment decision. Let’s take a closer look.
The Case for KROS
KROS is focused on developing and commercializing novel therapeutics to treat a wide range of patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta, or TGF-ß, family of proteins.
The recent pipeline progress has been encouraging. Lead product candidate, KER-065, is designed to bind to and inhibit TGF-ß ligands, including myostatin (GDF8) and activin A, which are negative regulators of muscle and bone mass and strength. The company is advancing KER-065 for the treatment of neuromuscular disorders, initially targeting Duchenne muscular dystrophy (DMD).
In March 2025, Keros reported initial top-line results from a phase I study of KER-065 in healthy volunteers. In August 2025, it announced that the FDA granted orphan drug designation for KER-065 for the treatment of DMD.
The company plans to begin a phase II trial in patients with DMD in the first quarter of 2026 and explore additional indications where KER-065’s mechanism of action is believed to have a strong potential for clinical success.
Keros also plans to pursue additional indications where KER-065’s mechanism of action has a high likelihood of clinical success.
In December 2024, Keros Therapeutics entered into an exclusive license agreement with Takeda Pharmaceuticals to develop, manufacture, and commercialize its second pipeline candidate elritercept worldwide, excluding mainland China, Hong Kong and Macau. The agreement, which turned effective on Jan. 16, 2025, provides Keros with funds in the form of milestone payments.
A phase III study, RENEW, is evaluating elritercept for the treatment of anemia and thrombocytopenia in patients with very low-, low-, or intermediate-risk myelodysplastic syndromes (MDS).
In July 2025, the company announced that the first patient had been dosed in the RENEW study, triggering a $10 million milestone payment to Keros under its global licensing agreement with Takeda.
Another phase II study, RESTORE, is evaluating elritercept in patients with myelofibrosis-associated cytopenias.
Meanwhile, Keros has taken deliberate steps to sharpen its strategic focus and strengthen capital efficiency. The company was previously advancing cibotercept for pulmonary arterial hypertension, but in August 2025, it discontinued the program and redirected resources toward its lead asset, KER-065, which currently appears to offer more compelling potential.
To support this realignment, management implemented a workforce reduction of approximately 45%, resulting in a streamlined organization of about 85 full-time employees. These actions are expected to generate average annualized cost savings of roughly $17 million. In parallel, Keros announced board and leadership changes in August 2025 to reinforce a leaner operating structure and tighter strategic execution.
As of Sept. 30, 2025, the company had $693.5 million in cash and cash equivalents. After accounting for $375.0 million of excess capital that the board has committed to return to stockholders, management expects the remaining cash to be sufficient to fund operating and capital expenditure needs into the first half of 2028.
The Case for DYN
Dyne is a clinical-stage company focused on delivering functional improvement for people living with genetically driven neuromuscular diseases.
Using its proprietary FORCE platform, the company has assembled a broad portfolio of product candidates, including product candidates being developed for myotonic dystrophy type (DM1), DMD, facioscapulohumeral dystrophy (FSHD) and Pompe disease.
The company is evaluating zeleciment rostudirsen (z-rostudirsen, also known as DYNE-251) in DMD.
Z-rostudirsen is an investigational therapeutic being evaluated in the phase I/II global DELIVER study for individuals with DMD who have mutations in the DMD gene that are amenable to exon 51 skipping.
Last month, the company reported positive top-line results from the Registrational Expansion Cohort (“REC”) of the DELIVER study. The REC met its primary endpoint, demonstrating a statistically significant increase in muscle content-adjusted dystrophin expression to 5.46% of normal at six months (p<0.0001).
Beyond biomarker data, z-rostudirsen showed encouraging functional benefits. Improvements versus placebo were observed across all six prespecified functional endpoints, including Time to Rise velocity and 10-Meter Walk/Run velocity, both of which reached nominal statistical significance despite the study not being powered for functional outcomes. Importantly, lung function — as measured by forced vital capacity percent predicted — was preserved at six months, addressing a key driver of morbidity and mortality in DMD.
Dyne plans to submit a biologics license application seeking accelerated approval of the candidate for DMD in the second quarter of 2026.
Z-rostudirsen has received Breakthrough Therapy Designation from the FDA and Orphan Drug Designation in Japan.
Meanwhile, the company’s other candidate zeleciment basivarsen, or z-basivarsen (also known as DYNE-101) is being evaluated in the phase I/II ACHIEVE study for DM1.
The company participated in a type C meeting with the FDA in May 2025 and discussed the path to regulatory approval, including accelerated approval for z-basivarsen in DM1. Consequently, the company submitted a revised protocol for review in June 2025 for the REC of the ACHIEVE study.
In June 2025, the FDA granted Breakthrough Therapy Designation to z-basivarsen for the treatment of DM1.
The company is also evaluating DYNE-302 for FSHD, which demonstrated robust and durable DUX4 suppression and functional benefit in a mouse model. The company is progressing DYNE-302 through IND/CTA-enabling studies.
DYN is also developing a product candidate, DYNE-401, to deliver an enzyme replacement therapy to address the deficiency of the lysosomal enzyme, GAA, which causes Pompe disease.
As of Sept. 30, 2025, Dyne had cash, cash equivalents and marketable securities of $791.9 million. The company continues to expect that this cash balance will be sufficient to fund its operations into the third quarter of 2027.
A Look at Estimates: KROS versus DYN
The Zacks Consensus Estimate for KROS’ 2025 earnings per share (EPS) suggests an improvement of 145%. EPS estimates for 2025 and for 2026 have moved north in the past 60 days.
KROS’ Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DYN’s 2025 EPS suggests a decline of 2.67%. EPS estimates for both 2025 and 2026 have moved north in the past 60 days.
DYN’s Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of KROS and DYN
From a price-performance perspective, KROS has fetched better returns than DYN in the past year. Shares of KROS have surged 63.9%, while those of DYN have risen 31.7%. The industry has risen 15.8% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, KROS is relatively cheaper than DYN. KROS’s shares currently trade at 0.81X trailing 12-month book value, lower than 3.72X for DYN.
Image Source: Zacks Investment Research
Which Stock Is a Better Pick for Now?
Selecting a winning stock in the highly volatile biotech sector is inherently challenging, as it often takes many years for companies to achieve profitability. Biotechnology companies typically commit hundreds of millions, and in some cases billions, to the development of innovative therapies, leading to substantial research and development expenditures.
As a result, investors in clinical-stage companies primarily base their decisions on the strength of the pipeline and its long-term potential. DMD is itself a particularly competitive and complex therapeutic area.
Keros has made notable progress with its lead DMD candidate. Any positive clinical or regulatory update related to KER-065 could serve as a meaningful catalyst and provide a significant upside driver for KROS shares.
KROS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On the other hand, DYN has a deeper pipeline and the recent pipeline progress is impressive as well. DYN currently carries a Zacks Rank #3 (HOLD).
Hence, KROS is definitely a better stock to own given its superior rank, recent stellar performance, cheaper valuation and pipeline potential.