Kezar Life Sciences | 10-Q: FY2025 Q3 Revenue: USD 0

Revenue: As of FY2025 Q3, the actual value is USD 0.

EPS: As of FY2025 Q3, the actual value is USD -1.53.

EBIT: As of FY2025 Q3, the actual value is USD -12.44 M.

Segment Revenue

• Collaboration Revenue: Generated from the upfront payment pursuant to the collaboration with Everest Medicines II (HK) Limited under the license agreement, with potential milestone payments of up to $125.5 million and tiered royalties on net sales ranging from single digit to low-teens.

Operational Metrics

• Net Loss: For the three months ended September 30, 2025, net loss was $11.2 million, compared to $20.3 million for the same period in 2024. For the nine months ended September 30, 2025, net loss was $41.5 million, compared to $63.5 million for the same period in 2024.
• Research and Development Expenses: Decreased by $9.3 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to decreased clinical expenses and personnel-related costs.
• General and Administrative Expenses: Decreased by $0.9 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to decreased stock-based compensation and personnel-related expenses.

Cash Flow

• Net Cash Used in Operating Activities: $39.8 million for the nine months ended September 30, 2025, compared to $57.4 million for the same period in 2024.
• Net Cash Provided by Investing Activities: $40.9 million for the nine months ended September 30, 2025, primarily due to maturities of marketable securities exceeding purchases.
• Net Cash Used in Financing Activities: $3.9 million for the nine months ended September 30, 2025, primarily from the repayment of principal associated with the Loan Agreement with Oxford Finance.

Future Outlook and Strategy

• Core Business Focus: The company is exploring strategic alternatives focused on maximizing stockholder value, including mergers, acquisitions, partnerships, joint ventures, licensing arrangements, or other strategic transactions. The company has retained a financial advisor to support the strategic review process.
• Non-Core Business: The company announced a workforce reduction of approximately 70% in connection with its strategic review process, estimating cash expenditures of approximately $6.0 million primarily for severance payments and related costs.

Priority

• The strategic review process is prioritized to potentially result in a transaction or strategic outcome that maximizes stockholder value, with no set timetable for completion.