Aurinia Pharmaceuticals has acquired Kezar Life Sciences, at a price of $6.955 per share of Kezar common stock. Aurinia develops therapies for patients with autoimmune diseases with unmet needs; Kezar’s focus is small-molecule therapeutics in autoimmunity and cancer.

Kezar Lead Candidate Details

Kezar’s lead product candidate, zetomipzomib, is a potentially first-in-class immunoproteasome inhibitor for patients with several conditions. These include autoimmune hepatitis (AIH), lupus nephritis, and systematic lupus erythematosus. In a Phase II AIH study (PORTOLA), zetomipzomib showed clinically meaningful, durable, steroid-sparing remissions.

Kezar reported positive interactions with the FDA in a recent meeting on the topic of accelerating zetomipzomib development for AIH.

Meanwhile, Aurinia’s portfolio includes Lupkynis (voclosporin), the first FDA-approved oral therapy for treatment of adults with active lupus nephritis. The company is also developing aritinercept for potential treatment of various autoimmune diseases. This is a dual inhibitor of B-cell activating factor and a proliferation-inducing ligand.

Aurinia Acquisition the Best Path Forward

After extensive review, Kezar’s board of directors said it decided Aurinia’s acquisition was in Kezar and its shareholders’ best interests.

“We are pleased to conclude our strategic review process with this agreement with Aurinia,” said Kezar CEO Chris Kirk. “[It] will provide immediate liquidity to our shareholders, as well as ongoing participation in the value of zetomipzomib … Aurinia is well positioned to continue the development of this novel therapeutic agent.”

The merger agreement also includes one non-transferable contingent value right entitling Aurinia to receive payments for ongoing development of zetomipzomib. Additionally, some other payment conditions include certain proceeds from Kezar’s collaborations with Everest Medicines and Enodia Therapeutics.