Kezar Life Sciences (KZR) AI Stock Analysis

• Market Cap: $32.66M
• Dividend Yield: N/A
• Average Volume (3M): 68.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -100.00%
• EPS Growth: 18.17%
• Country: US
• Employees: 55
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -2.27
• Shares Outstanding: 7,305,800
• 10 Day Avg. Volume: 117,400
• 30 Day Avg. Volume: 68,402
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.49
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: -1.81
• Enterprise Value/Gross Profit: -26.77
• Enterprise Value/Ebitda: -0.02
• 1Y Price Target: $7.00
• Price Target Upside: 62.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 42 Neutral
• 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 Potential

Removal of the clinical hold and alignment on the next development steps for zeto in AIH will provide upside to current share prices given the blockbuster market opportunity.

Regulatory Approval

The FDA lifted the partial clinical hold on the Phase II PORTOLA study evaluating zetomipzomib in patients with autoimmune hepatitis.

Negative Factors

Development Challenges

The development of zetomipzomib in lupus nephritis (LN) has been suspended, impacting its progress in that area.

Regulatory 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.

Stock Performance

Shares are down 36% year-to-date as investors still have questions and key debates on the partial clinical hold and the AIH regulatory path haven't been addressed.

Kezar Life Sciences Business Overview & Revenue Model

Company Description

Kezar 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 Money

Kezar 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	7.00M	0.00	0.00	0.00
Gross Profit	0.00	7.00M	-1.02M	-1.51M	-1.54M
EBITDA	-81.10M	-99.25M	-66.11M	-52.96M	-40.26M
Net Income	-83.74M	-101.87M	-65.32M	-53.28M	-38.99M
Balance Sheet
Total Assets	144.68M	221.24M	299.57M	217.93M	151.84M
Cash, Cash Equivalents and Short-Term Investments	132.25M	201.37M	276.56M	208.35M	140.45M
Total Debt	16.18M	18.93M	21.26M	14.04M	5.46M
Total Liabilities	27.77M	33.66M	29.70M	21.06M	10.86M
Stockholders Equity	116.92M	187.57M	269.87M	196.88M	140.98M
Cash Flow
Free Cash Flow	-74.24M	-83.45M	-60.42M	-42.75M	-37.14M
Operating Cash Flow	-74.21M	-81.64M	-58.85M	-42.44M	-36.95M
Investing Cash Flow	80.43M	76.05M	-91.39M	-28.44M	-56.50M
Financing Cash Flow	103.00K	638.00K	127.86M	112.58M	99.64M

Kezar Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KZR, the sentiment is Negative. The current price of 4.31 is below the 20-day moving average (MA) of 4.49, below the 50-day MA of 4.36, and below the 200-day MA of 5.78, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KZR.

Kezar Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVTX	61 Neutral	$38.41M	―	-73.11%	―	-60.20%	3.85%
Sector *	52 Neutral	$7.60B	0.11	-62.95%	2.07%	16.16%	0.31%
ALGS	51 Neutral	$54.48M	―	-60.44%	―	-76.29%	―
KZR	42 Neutral	$32.66M	―	-57.78%	―	-100.00%	18.17%
COEP	―	$41.85M	―	-197.22%	―	―	―
RNXT	49 Neutral	$47.54M	―	-136.13%	―	―	61.43%
ESLA	―	$34.34M	―	-314.60%	―	―	―

Kezar Life Sciences Corporate Events

Kezar Life Sciences Appoints New Principal Accounting Officer

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.