Kezar Life Sciences (KZR) AI Stock Analysis

• Market Cap: $28.86M
• Dividend Yield: N/A
• Average Volume (3M): 29.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -100.00%
• EPS Growth: 18.17%
• Country: US
• Employees: 55
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -11.49
• Shares Outstanding: 7,305,800
• 10 Day Avg. Volume: 31,211
• 30 Day Avg. Volume: 29,245
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.14
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.50
• Price Target Upside: 216.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Kezar Life Sciences faces significant challenges with negative earnings, cash flow issues, and weak market momentum. The stable balance sheet is a positive factor, but the lack of revenue and reliance on external funding are key risks. The bearish technical indicators and negative P/E ratio further highlight the company's struggles to achieve profitability, resulting in a low overall score.

Positive Factors

Clinical Trial Results

KZR reported positive topline results from zeto's Ph II trial in AIH with 51% of patients on zeto achieving a complete response versus 37% on placebo.

Financial Valuation

Shares are significantly undervalued following positive PORTOLA data, and analyst reiterates an Outperform rating.

Market Opportunity

AIH opportunity is appealing with approximately 100,000 U.S. patients and no competitors on the horizon.

Negative Factors

Financial Performance

Kezar Life Sciences reported a net loss of $2.78 per share in 3Q24, which is wider than the forecasted net loss of $0.23 per share.

Regulatory Challenges

A partial clinical hold has been placed on Phase 2a of zetomipzomib in autoimmune hepatitis by the FDA, adding uncertainty to the program.

Stock Performance

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 Business Overview & Revenue Model

Company Description

Kezar Life Sciences (KZR) is a biotechnology company focused on the discovery and development of novel small molecule therapies to treat unmet needs in autoimmune diseases and cancer. The company is pioneering a new approach to drug discovery using protein degradation and immunoproteasome modulation, with a pipeline that includes both preclinical and clinical-stage programs. Kezar's lead product candidate, KZR-616, is in clinical development for the treatment of multiple autoimmune diseases.

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 early stages of development, common in the biotechnology sector, with substantial research and development expenses. The financials reflect ongoing operational and cash flow challenges, countered by a relatively stable balance sheet. The company may need to secure additional funding to sustain operations and achieve profitability.

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	5.93M	-1.02M	-1.51M	-1.54M
	EBIT
-90.61M	-105.24M	-71.16M	-54.66M	-42.95M
	EBITDA
-90.61M	-99.25M	-66.11M	-52.96M	-40.26M
	Net Income Common Stockholders
-83.74M	-101.87M	-65.32M	-53.28M	-38.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
132.25M	201.37M	276.56M	208.35M	140.45M
	Total Assets
144.68M	221.24M	299.57M	217.93M	151.84M
	Total Debt
11.07M	18.93M	21.26M	14.04M	5.46M
	Net Debt
-30.68M	-16.56M	-19.19M	-48.84M	-15.76M
	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: 3.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 3.95 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 5.60, and below the 200-day MA of 6.42, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 26.49 is Positive, neither overbought nor oversold. The STOCH value of 9.13 is Positive, 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
ARGX	68 Neutral	$33.70B	41.82	17.33%	―	78.01%	―
XENE	48 Neutral	$2.40B	―	-27.85%	―	―	-10.19%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
RARE	47 Neutral	$3.21B	―	-214.50%	―	29.01%	23.93%
CRSP	46 Neutral	$2.95B	―	-19.20%	―	-89.95%	-123.71%
KZR	41 Neutral	$28.86M	―	-55.00%	―	-100.00%	18.17%
IMVT	37 Underperform	$2.51B	―	-74.17%	―	―	-43.10%

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.