Acquisition Alert: Aurinia Pharmaceuticals Inc. to Acquire Kezar Life Sciences Inc. in Definitive Merger Agreement
Aurinia Pharmaceuticals Inc. has announced a definitive merger agreement to acquire Kezar Life Sciences, Inc. for $6.955 in cash per share along with a contingent value right. The CVR includes potential payments related to zetomipzomib's clinical development, collaboration proceeds, and net cash exceeding $50 million. Zetomipzomib is an immunoproteasome inhibitor being developed for autoimmune diseases like lupus nephritis and systemic lupus erythematosus, showing promising results in a Phase 2 study for autoimmune hepatitis.
Aurinia will initiate a tender offer to acquire all outstanding shares of Kezar common stock through its subsidiaries by April 13, 2026. The closing of the transaction is subject to certain conditions, including a majority of outstanding shares being tendered and Kezar having closing net cash exceeding $50 million. Tang Capital Partners, a significant shareholder of Kezar, has agreed to tender its shares and support the merger.
Upon completion of the tender offer, Kezar will be acquired by Aurinia, with remaining shares converted into cash and CVR consideration. The transaction is expected to be finalized in the second quarter of 2026. In recent financial news, Aurinia reported strong results for the fourth quarter of 2025, surpassing analysts' expectations with significant earnings per share and revenue growth.
Aurinia has also appointed Kevin Tang as the new Chief Executive Officer, following the departure of former CEO Peter Greenleaf. Tang will take on the CEO role without receiving compensation, while Greenleaf will continue as a consultant during the transition period. These changes mark a significant shift in Aurinia's executive leadership team.
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