Kezar Life Sciences, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company’s total current assets decreased to $156.4 million from $207.0 million at the end of 2023, while total assets fell to $164.1 million from $221.2 million. Notably, current liabilities now include $3.9 million in debt, a shift from no reported debt at the end of 2023. Total stockholders' equity also declined to $134.0 million from $187.6 million.

The company experienced a complete drop in collaboration revenue, reporting $0 for both the three and nine months ended September 30, 2024, compared to $7.0 million in the same periods of 2023. Operating expenses decreased significantly, with total operating expenses for the three months ending September 30, 2024, at $21.9 million, down from $32.5 million in 2023. Research and development expenses also saw a reduction, totaling $16.2 million for the quarter, compared to $23.7 million the previous year. The net loss for the three months ended September 30, 2024, was $20.3 million, an improvement from a net loss of $23.1 million in the same period of 2023.

For the nine months ended September 30, 2024, the net loss was $63.5 million, down from $69.6 million in 2023. The company reported a basic net loss per share of $(8.72) for the nine months, compared to $(9.60) in the prior year. Cash and cash equivalents at the end of the period stood at $34.9 million, an increase from $26.5 million a year earlier.

Strategically, Kezar Life Sciences has made significant decisions, including the termination of the PALIZADE Phase 2b clinical trial due to a clinical hold imposed by the FDA after four patient deaths. The company is now focusing its efforts on the development of its lead product candidate, zetomipzomib, for autoimmune hepatitis. In October 2023, Kezar entered into a collaboration and license agreement with Everest Medicines, which included a $7.0 million upfront payment and potential milestone payments totaling up to $125.5 million.

The company has also undergone restructuring, reducing its workforce by approximately 40% to extend its cash runway and prioritize clinical-stage assets. This restructuring resulted in impairment charges related to right-of-use assets and long-lived assets. As of September 30, 2024, Kezar had $148.4 million in cash, cash equivalents, and marketable securities, which it believes will fund operations for at least the next 12 months.