This one has layers. Aurinia Pharmaceuticals just announced a definitive agreement to acquire Kezar Life Sciences for $6.955 per share in cash, plus a contingent value right tied to future milestones. But the headline doesn’t tell you the half of it.
Kevin Tang tried to buy Kezar once before — back in 2024 — and got turned down. So what did he do? He took control of Aurinia instead, became CEO, and now he’s using Aurinia’s war chest to circle back and finally close the deal. That’s not a pivot. That’s a plan.
And the asset he’s after? Zetomipzomib — a first-in-class immunoproteasome inhibitor that Kezar has been dragging through one of the rougher development timelines in recent memory.
Kezar Life Sciences — the road to acquisition
Phase 2a PORTOLA (AIH)
36% complete biochemical response vs. 0% placebo — steroid-sparing, durable remissions
PALIZADE trial terminated
Four fatal serious adverse events in lupus nephritis trial — clinical hold
FDA roadblock
Type C meeting cancelled — FDA demands 2-year hepatic impairment study
Strategic review & restructuring
70% headcount reduction, retained TD Cowen, sold Sec61 assets to Enodia
March 2026 — Acquired by Aurinia
$6.955/share + CVR. Kevin Tang gets the deal done on his second try.
Look, Kezar’s Phase 2a data in autoimmune hepatitis was genuinely good — a rare disease with zero approved therapies and a real unmet need. But then the PALIZADE lupus nephritis trial produced four fatal SAEs, the FDA cancelled a key meeting and demanded a study that would set things back two years, and the company had to gut itself. Seventy percent of the headcount, gone. They sold their entire Sec61 discovery platform to Enodia Therapeutics just weeks ago.
But here’s why Tang wanted it: zetomipzomib is still a first-in-class asset with clean Phase 2 data in AIH, and the FDA has since given feedback described as “supportive of accelerating development.” Meanwhile, Aurinia is sitting on $358.5 million in cash, LUPKYNIS is generating over $216 million in annual revenue, and they already have deep expertise in autoimmune kidney disease. Zetomipzomib in lupus nephritis slots right into their commercial wheelhouse.
The CVR structure suggests there’s upside tied to development milestones — which means if zetomipzomib delivers in registrational trials, Kezar shareholders could see more. For now, this is a story about persistence, strategic patience, and a drug that survived its own near-death experience.
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