| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.10 | 445 |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Kezar Life Sciences, Inc. (NASDAQ: KZR) is a clinical-stage biotechnology company focused on discovering and developing novel small molecule therapeutics to address unmet medical needs in immune-mediated diseases and cancer. Headquartered in South San Francisco, California, Kezar's lead candidate, KZR-616, is a selective immunoproteasome inhibitor currently in Phase 2 clinical trials for lupus nephritis, dermatomyositis, and polymyositis, with additional Phase 1b trials for systemic lupus erythematosus. The company is also advancing preclinical candidates like KZR-261, a first-in-class protein secretion inhibitor, and KZR-TBD for oncology and immunology applications. Operating in the high-growth biotechnology sector, Kezar targets autoimmune and oncology markets with significant unmet needs, positioning itself as an innovative player in next-generation immunomodulatory therapies. With no current revenue and a focus on clinical development, Kezar's valuation hinges on pipeline progression and potential partnerships.
Kezar Life Sciences presents a high-risk, high-reward investment opportunity typical of clinical-stage biotech firms. The company's lead candidate, KZR-616, addresses large autoimmune markets with limited treatment options, but carries binary regulatory risk. With $41.7M in cash (as of last reporting) and an annual burn rate of ~$74M, near-term financing needs are likely. The stock's low beta (0.60) suggests relative insulation from broad market movements, but the absence of revenue and negative EPS (-$1.15) make it suitable only for risk-tolerant investors. Key value drivers include clinical readouts for KZR-616 and preclinical progress with KZR-261. Competition in immunoproteasome inhibition remains limited, providing potential first-mover advantage if trials succeed.
Kezar's competitive position centers on its focus on selective immunoproteasome inhibition, a differentiated approach versus broader proteasome inhibitors like carfilzomib. The company's KZR-616 aims for improved safety profiles in autoimmune diseases compared to existing immunosuppressants, potentially addressing steroid-sparing needs. In oncology, Kezar's protein secretion inhibitor (KZR-261) represents a novel mechanism distinct from checkpoint inhibitors dominating the immunotherapy space. However, as a single-asset clinical company with limited resources, Kezar faces significant scaling risks against larger competitors with diversified pipelines. The absence of commercial infrastructure necessitates future partnerships for late-stage development or commercialization. Kezar's academic collaborations (e.g., with UCSF) provide research credibility but don't offset the financial and operational advantages of established biopharma competitors. The company's $28.7M market cap reflects high risk discounting, leaving room for substantial upside with positive clinical data but vulnerable to dilution or acquisition at depressed valuations.