Kezar Life Sciences Reports Improved Net Loss of $13.7 Million in Q2 2025

Kezar Life Sciences, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $13.7 million, a significant improvement compared to a net loss of $21.5 million in the same period last year. For the six months ending June 30, 2025, the company recorded a net loss of $30.3 million, down from $43.2 million in the prior year. The reduction in losses is attributed to a decrease in operating expenses, which totaled $14.6 million for the quarter, down from $23.4 million in the previous year, primarily due to lower research and development costs following the termination of the PALIZADE trial.

Total operating expenses for the first half of 2025 were $32.2 million, compared to $47.1 million for the same period in 2024. Research and development expenses decreased to $21.8 million from $33.5 million, reflecting the company's strategic decision to focus on its lead product candidate, zetomipzomib, for autoimmune diseases. General and administrative expenses also saw a decline, totaling $10.5 million for the first half of 2025, down from $12.1 million in 2024.

As of June 30, 2025, Kezar Life Sciences had total assets of $109.1 million, a decrease from $144.7 million at the end of 2024. The company's cash and cash equivalents stood at $34.4 million, down from $41.7 million at the end of the previous fiscal year. The decline in cash reserves is attributed to ongoing operational expenses, although the company believes its current resources will be sufficient to meet its operational needs for at least the next 12 months.

In terms of strategic developments, Kezar Life Sciences entered into a collaboration agreement with Everest Medicines in September 2023, which included a $7 million upfront payment. The agreement allows Everest to develop and commercialize zetomipzomib in several Asian markets, with potential milestone payments totaling up to $125.5 million. The company is also preparing for a Type C meeting with the FDA to discuss the development plan for zetomipzomib in autoimmune hepatitis, following the removal of a partial clinical hold on its PORTOLA Phase 2a trial.

Looking ahead, Kezar Life Sciences anticipates continued investment in research and development as it seeks to advance its product candidates through clinical trials. The company expects to incur significant expenses and operating losses in the foreseeable future, with a focus on obtaining regulatory approvals and preparing for potential commercialization of its therapies. The ongoing financial strategy may include raising additional capital through equity offerings or collaborations to support its operational and developmental goals.