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Kezar Life Sciences Inc (KZR)
NASDAQ:KZR

Kezar Life Sciences (KZR) AI Stock Analysis

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KZ

Kezar Life Sciences

(NASDAQ:KZR)

Rating:42Neutral
Price Target:
Kezar Life Sciences faces significant challenges typical of early-stage biotech companies, with no revenue and ongoing losses. While the balance sheet shows stability, the company is reliant on external funding. Technical indicators suggest negative momentum, and the valuation metrics are unattractive due to negative earnings. The lack of earnings call and corporate events data further impacts the assessment.
Positive Factors
Clinical Trial Results
Positive topline results from zeto's Phase II trial in AIH with 51% of patients on zeto achieving a complete response compared to 37% on placebo.
Market Opportunity
Zeto has a blockbuster opportunity in AIH given the prevalence of the disease and current unmet medical need.
Stock Valuation
Shares are significantly undervalued following positive PORTOLA data, and analyst reiterates an Outperform rating.
Negative Factors
Clinical Trial Uncertainty
It is difficult to know when the partial clinical hold may be resolved and what data might be required to address the agency's concerns.
Regulatory Challenges
Residual concern exists that lupus nephritis safety risk might emerge in a larger AIH study.
Trial Size Concerns
Kezar shares are trading down due to questions on the small size of the PORTOLA trial and lack of awareness of AIH treatment.

Kezar Life Sciences (KZR) vs. SPDR S&P 500 ETF (SPY)

Kezar Life Sciences Business Overview & Revenue Model

Company DescriptionKezar Life Sciences, Inc., a clinical-stage biotechnology company, engages in the discovery and development of novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer in the United States. The company's lead product candidate is KZR-616, a selective immunoproteasome inhibitor that is in Phase 2 clinical trials for various indications, including lupus nephritis, dermatomyositis, and polymyositis; and Phase 1b clinical trials in systemic lupus erythematosus and lupus nephritis. Its preclinical products include KZR-261, a novel first-in-class protein secretion inhibitor for the treatment of KZR-261; and KZR-TBD for the treatment of oncology and immunology. The company was incorporated in 2015 and is based in South San Francisco, California.
How the Company Makes MoneyKezar Life Sciences generates revenue primarily through strategic partnerships, collaborations, and potential licensing agreements with other pharmaceutical and biotechnology companies. These partnerships may include upfront payments, milestone payments, and royalties based on the successful development and commercialization of their drug candidates. Additionally, the company may receive funding through grants or research agreements. As Kezar's lead product candidates progress through clinical trials and towards potential market approval, the company could also generate revenue from product sales if they receive regulatory approval.

Kezar Life Sciences Financial Statement Overview

Summary
Kezar Life Sciences is in the development stage, typical for biotechnology firms, with no significant revenue and persistent losses. The balance sheet remains fairly stable with a solid equity base, but operational and cash flow challenges persist, suggesting the need for additional funding.
Income Statement
25
Negative
Kezar Life Sciences has consistently reported no revenue for most of the years, except for 2023. Gross profit margin is unavailable due to zero revenue in most years. Net income has been negative, indicating losses. The EBIT and EBITDA margins are also negative, suggesting high operational costs and inefficiencies.
Balance Sheet
65
Positive
The company has a solid equity base with decreasing liabilities over time, as seen from the debt-to-equity ratio and equity ratio. However, the consistent losses have impacted the return on equity, which remains negative. Overall, the balance sheet shows financial stability despite operational challenges.
Cash Flow
30
Negative
Operating cash flow has been negative, indicating that the company is not generating cash from its core activities. While free cash flow is negative, it has shown slight improvements over the years. The cash flow from financing activities suggests reliance on external funding.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.007.00M0.000.000.00
Gross Profit-261.00K0.007.00M-1.02M-1.51M-1.54M
EBITDA-76.06M-81.10M-99.25M-66.11M-52.96M-40.26M
Net Income-78.63M-83.74M-101.87M-65.32M-53.28M-38.99M
Balance Sheet
Total Assets125.26M144.68M221.24M299.57M217.93M151.84M
Cash, Cash Equivalents and Short-Term Investments114.36M132.25M201.37M276.56M208.35M140.45M
Total Debt10.24M16.18M18.93M21.26M14.04M5.46M
Total Liabilities22.19M27.77M33.66M29.70M21.06M10.86M
Stockholders Equity103.07M116.92M187.57M269.87M196.88M140.98M
Cash Flow
Free Cash Flow-68.58M-74.24M-83.45M-60.42M-42.75M-37.14M
Operating Cash Flow-68.54M-74.21M-81.64M-58.85M-42.44M-36.95M
Investing Cash Flow73.76M80.43M76.05M-91.39M-28.44M-56.50M
Financing Cash Flow-1.20M103.00K638.00K127.86M112.58M99.64M

Kezar Life Sciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.58
Price Trends
50DMA
4.32
Positive
100DMA
4.83
Negative
200DMA
5.92
Negative
Market Momentum
MACD
0.04
Negative
RSI
54.77
Neutral
STOCH
59.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KZR, the sentiment is Positive. The current price of 4.58 is above the 20-day moving average (MA) of 4.45, above the 50-day MA of 4.32, and below the 200-day MA of 5.92, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 59.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KZR.

Kezar Life Sciences Risk Analysis

Kezar Life Sciences disclosed 63 risk factors in its most recent earnings report. Kezar Life Sciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Kezar Life Sciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$47.94M-60.44%-76.29%
52
Neutral
$7.50B0.31-61.87%2.27%17.10%1.59%
49
Neutral
$49.74M-136.13%61.43%
47
Neutral
$34.72M-73.11%-60.20%3.85%
KZKZR
42
Neutral
$33.46M-57.78%-100.00%18.17%
$26.49M-197.22%
$31.83M-314.60%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KZR
Kezar Life Sciences
4.58
-0.89
-16.27%
ALGS
Aligos Therapeutics
7.84
-2.46
-23.88%
COEP
Coeptis Therapeutics Holdings
7.54
1.84
32.28%
LVTX
LAVA Therapeutics
1.32
-0.53
-28.65%
RNXT
RenovoRx
1.36
0.15
12.40%
ESLA
Estrella Immunopharma
0.88
-0.36
-29.03%

Kezar Life Sciences Corporate Events

Executive/Board Changes
Kezar Life Sciences Appoints New Principal Accounting Officer
Neutral
Apr 1, 2025

On March 27, 2025, Kezar Life Sciences announced the appointment of Pichi (Pattie) Chiang as the principal accounting officer, effective April 1, 2025. This change is part of the company’s internal restructuring, with Marc Belsky continuing as the Chief Financial Officer. Ms. Chiang, who has been with Kezar since 2018, brings extensive experience from her previous roles in finance leadership at Achaogen and other companies in the life sciences and high-tech sectors. Her appointment is not accompanied by any new compensatory arrangements, and there are no familial or transactional conflicts of interest associated with her new role.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025