Kezar Life Sciences Reports $16.6 Million Net Loss in Q1 2025, Decreases Operating Expenses

Kezar Life Sciences, Inc. reported a net loss of $16.6 million for the first quarter of 2025, a decrease from the $21.7 million loss recorded in the same period of the previous year. The company’s total operating expenses for the quarter were $17.6 million, down from $23.7 million in the prior year, primarily due to reduced research and development costs, which fell to $12.2 million from $17.2 million. This reduction reflects the company's strategic decision to terminate the PALIZADE Phase 2b clinical trial in October 2024, which contributed to a decrease in clinical expenses.

As of March 31, 2025, Kezar Life Sciences had total assets of $125.3 million, down from $144.7 million at the end of 2024. The company’s cash and cash equivalents decreased to $37.0 million from $41.7 million, while marketable securities also saw a decline, totaling $77.4 million compared to $90.5 million at the end of the previous fiscal year. The accumulated deficit increased to $451.1 million, reflecting the ongoing investment in research and development without any product sales to date.

In terms of strategic developments, Kezar Life Sciences entered into a collaboration and license agreement with Everest Medicines in September 2023, granting Everest exclusive rights to develop and commercialize the company’s proprietary compound, zetomipzomib, in several Asian markets. The agreement included a $7 million upfront payment and potential milestone payments totaling up to $125.5 million, along with tiered royalties on net sales. This collaboration is expected to enhance the company’s market presence in the Greater China region and Southeast Asia.

Operationally, the company reported a slight increase in its employee headcount, with 7,305,800 shares of common stock outstanding as of May 8, 2025. The company continues to focus on advancing its product candidates, particularly zetomipzomib, which is being evaluated for the treatment of autoimmune diseases. Kezar Life Sciences anticipates that it will incur significant expenses and operating losses in the foreseeable future as it progresses through clinical trials and seeks regulatory approvals.

Looking ahead, Kezar Life Sciences expects to continue its focus on the development of zetomipzomib and potentially other product candidates. The company believes that its existing cash, cash equivalents, and marketable securities will be sufficient to fund its operations for at least the next 12 months. However, it acknowledges the need for additional capital to support ongoing research and development efforts, which may be pursued through equity offerings, collaborations, or other financing arrangements.