Kezar Life Sciences(US:KZR)2025-11-12 21:21Financial Performance - The company reported a net loss of $41.5 million for the nine months ended September 30, 2025, compared to a net loss of $63.5 million for the same period in 2024, reflecting a decrease of $22.0 million [134]. - Total operating expenses for the nine months ended September 30, 2025, were $43.9 million, down from $69.0 million in 2024, representing a decrease of $25.1 million [134]. - The net loss for the nine months ended September 30, 2025, was $41.5 million, with an accumulated deficit of $476.0 million as of the same date [142]. - Cash used in operating activities was $39.8 million for the nine months ended September 30, 2025, compared to $57.4 million for the same period in 2024 [154]. - The company anticipates additional losses in the future as it evaluates strategic alternatives and manages discretionary spending [145]. Research and Development - Research and development expenses decreased by $21.0 million for the nine months ended September 30, 2025, primarily due to a reduction in clinical expenses from the termination of the PALIZADE trial and completion of the PORTOLA trial [135]. - Research and development expenses for the three months ended September 30, 2025, were $6.9 million, down from $16.2 million in 2024, a decrease of $9.3 million [129]. - The FDA removed the partial clinical hold on the PORTOLA Phase 2a clinical trial for zetomipzomib in July 2025, but a proposed registrational trial for relapsed and refractory autoimmune hepatitis was not aligned with the FDA [113][114]. Expenses and Charges - General and administrative expenses for the three months ended September 30, 2025, decreased by $0.9 million to $4.8 million compared to $5.7 million in 2024 [131]. - Restructuring and impairment charges decreased by $1.5 million for the nine months ended September 30, 2025, compared to the same period in 2024 [137]. - Interest income decreased by $1.0 million for the three months ended September 30, 2025, primarily due to a decrease in cash equivalents and lower interest rates [132]. - Interest income decreased by $3.1 million for the nine months ended September 30, 2025, primarily due to lower cash equivalents and interest rates [139]. Strategic Initiatives - The company is exploring strategic alternatives, including a restructuring plan and workforce reduction, to maximize stockholder value [115]. - The company reduced its workforce by approximately 70% as part of cost reduction efforts, estimating cash expenditures of about $6.0 million [144]. - The company has no committed external sources of funding and may need to pursue financing through equity offerings, debt financings, and collaborations [152]. Cash and Investments - As of September 30, 2025, the company had $90.2 million in cash, cash equivalents, and marketable securities, with an average maturity of approximately two months [141]. - Net cash provided by investing activities was $40.9 million for the nine months ended September 30, 2025, primarily from maturities of marketable securities [157]. - The company repaid $6.3 million under the Loan Agreement with Oxford Finance in October 2025, fully satisfying the outstanding amount [146].