Kezar Life Sciences Provides Third Quarter 2025 Financial and Corporate Update
Kezar Life Sciences, Inc. (Nasdaq: KZR), a clinical-stage biotechnology company developing novel small molecule therapeutics targeting immune-mediated diseases, announced its financial results for the third quarter ended September 30, 2025, and provided an update on recent corporate developments.
Strategic and Clinical Program Update
In October 2025, Kezar disclosed that discussions with the U.S. Food and Drug Administration (FDA) regarding a potential registrational clinical trial of zetomipzomib, its novel and selective immunoproteasome inhibitor, in patients with relapsed and refractory autoimmune hepatitis (AIH), did not reach alignment. As a result, the company is now exploring a comprehensive range of strategic alternatives designed to maximize shareholder value and ensure optimal use of its resources.
To support this process, Kezar has retained TD Cowen as its financial advisor. The company’s strategic review includes potential options such as partnerships, mergers, acquisitions, asset sales, or other business combinations that could unlock long-term value for shareholders.
While this review is underway, Kezar has begun implementing a series of cost-containment and cash preservation measures to extend its financial runway and maintain operational stability during the evaluation period.
Financial Restructuring and Operational Changes
As part of these initiatives, on October 20, 2025, Kezar completed the full repayment of $6.3 million under its existing Loan Agreement with Oxford Finance, LLC, originally executed in November 2021. This repayment covered all principal, accrued interest, and the final payment fee due under the agreement, thereby eliminating the company’s outstanding debt obligations.
Following this repayment, on November 6, 2025, Kezar implemented a restructuring plan that included a 70% reduction in workforce, impacting approximately 31 employees. This significant cost-saving measure is intended to align the organization with its streamlined strategic focus and reduce cash burn.
The Sciences company expects to incur approximately $6.0 million in cash expenditures related to this restructuring, primarily consisting of severance payments, employee benefits, and associated costs. Most of these expenses are anticipated to be recognized in the fourth quarter of 2025.
Kezar emphasized that while the restructuring represents a substantial downsizing, a core team of essential personnel remains in place to support key operations and advance Sciences value-creating activities related to its ongoing strategic review and research priorities.
Financial Performance for the Third Quarter of 2025
As of September 30, 2025, Kezar reported cash, cash equivalents, and marketable securities totaling $90.2 million, compared to $132.2 million as of December 31, 2024. The decline in cash position primarily reflects cash used in operations during the reporting period, including R&D and administrative activities.
Research and Development (R&D) Expenses
R&D expenses for the third quarter of 2025 were $6.9 million, a decrease of $9.3 million from the $16.2 million reported in the same quarter of 2024. The Sciences decline was mainly attributed to:
- Completion and closeout of certain clinical trials, leading to reduced clinical activity and associated costs;
- Lower personnel expenses, including reductions in non-cash stock-based compensation; and
- Decreased facility-related costs resulting from a smaller operational footprint.
These reductions were partially offset by increased drug manufacturing expenses, reflecting ongoing commitments related to product development and manufacturing readiness.
General and Administrative (G&A) Expenses
G&A expenses for the third quarter of 2025 totaled $4.8 million, representing a $0.9 million decrease compared to $5.7 million in the third quarter of 2024. This decrease was primarily driven by:
- Lower personnel-related expenses following workforce optimization; and
- Reduced non-cash stock-based compensation.
The company continues to focus on financial discipline, ensuring that administrative spending aligns with its streamlined operations.
For the third quarter of 2025, Kezar reported a net loss of $11.2 million, or $1.53 per basic and diluted share, compared to a net loss of $20.3 million, or $2.78 per share, for Sciences the third quarter of 2024. The improvement in net loss year-over-year primarily reflects lower R&D and G&A expenses following reductions in clinical trial activity and organizational scaling.
As of September 30, 2025, the company had 7.3 million shares of common stock outstanding.
Management Commentary
Kezar’s management reiterated its commitment to preserving shareholder value while conducting a disciplined and thorough evaluation of strategic alternatives. The Sciences company’s leadership emphasized that all decisions are guided by the dual priorities of responsible capital allocation and continued scientific integrity.
The decision to streamline operations, repay outstanding debt, and reduce the workforce reflects Kezar’s proactive approach to maintaining financial stability amid shifting clinical and regulatory conditions. Management also underscored that the company’s cash position provides sufficient flexibility to support the ongoing strategic review and potential future initiatives.
Outlook and Next Steps
Kezar’s immediate focus is on completing the strategic review process in a timely and comprehensive manner. The company plans to continue working closely with TD Cowen to identify opportunities that best align with its scientific assets, corporate strengths, and shareholder interests.
In parallel, Kezar intends to preserve its intellectual property Sciences portfolio and maintain readiness for potential partnering or business development opportunities involving its key assets, including zetomipzomib and other early-stage discovery programs.
The company has not established a definitive timeline for the completion of the review and noted that there can be no assurance that the process will result in any transaction or specific outcome. Kezar expects to provide updates as appropriate once material developments occur.
About Kezar Life Sciences
Kezar Life Sciences is a clinical-stage biotechnology company dedicated to discovering and developing innovative small molecule therapies targeting immune-mediated diseases. The company’s lead product candidate, zetomipzomib, is designed to selectively inhibit the immunoproteasome, offering a novel mechanism of action aimed at restoring immune balance in autoimmune disorders.
Through its research platform, Kezar seeks to advance therapies that address significant unmet medical needs by modulating key cellular pathways implicated in immune system dysregulation.
This press release contains forward-looking statements within the meaning of federal securities laws, including statements related to the company’s strategic review process, restructuring plan, Sciences cost-containment measures, financial condition, and future operational outlook. These statements are subject to various risks and uncertainties, which could cause actual results to differ materially from those expressed or implied.
Such risks include but are not limited to the outcomes of the strategic review process, regulatory developments, potential changes in the competitive landscape, and the Sciences company’s ability to execute on its cost-saving initiatives. Kezar undertakes no obligation to update or revise these statements, except as required by law.
In summary, Kezar Life Sciences’ third quarter 2025 report reflects a period of significant transition and strategic reassessment. While facing regulatory and operational challenges, the company remains focused on financial discipline, shareholder value preservation, and identifying a sustainable path forward for its clinical and scientific programs.
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