After being knocked back in 2024, serial biotech acquirer Kevin Tang has used a different route to finally get his hands on Kezar Life Sciences.
The acquisition of Kezar is coming from autoimmune specialist Aurinia Pharmaceuticals, which named Tang as its new CEO last week. Aurinia is paying $6.95 cash per share of Kezar. With 7.32 million shares outstanding as of March 23, according to Kezar’s most recent SEC filing, Fierce calculates that this morning’s deal values Kezar at just over $50 million.
Tang previously made an unsuccessful attempt in 2024 to acquire Kezar via Concentra Biosciences and its parent company, Tang Capital Partners. Back then, Tang made a more modest offer of $1.10 per share after two clinical holds were placed on Kezar’s lead asset zetomipzomib, an immunoproteasome inhibitor being developed for autoimmune hepatitis (AIH), lupus nephritis and systemic lupus erythematosus (SLE).
Still, this morning's offer is barely above the $6.20 share price that Kezar's stock closed trading at on Friday.
The deal with Aurinia also includes a non-transferable contingent value right (CVR), which entitles shareholders to potential future payments tied to the development or sale of zetomipzomib. It also incorporates proceeds from Kezar’s sale of its preclinical protein degradation program to Encodia Therapeutics earlier this month, as well as a 2023 collaboration with Everest Medicines, which also relates to zetomipzomib.
Concentra Biosciences’ prior offer of $1.10 per share exceeded Kezar’s stock price at the time but was rejected by the company’s board, which argued that the bid “substantially undervalued” the biotech.
At the time, Tang already owned a 9.9% stake in Kezar. The offer prompted the company to adopt a “rights plan” that imposed significant penalties on any party attempting to acquire more than 10% of its shares. In July 2025, the FDA lifted its hold on a phase 2a study in AIH patients. However, despite “encouraging” results, Kezar announced last October that it had been unable to align with the FDA on a registrational trial for zetomipzomib and would explore strategic alternatives.
In January, Kezar announced a Type C meeting with the FDA to review data in AIH, with the meeting resulting in agreement on treatment duration, safety monitoring, endpoints and enrollment criteria for its next study. A note from William Blair analysts released shortly before the acquisition was announced today indicated that the firm did not expect Kezar to move forward with the trial, though they speculated that the positive regulatory update could attract a potential partner.
Tang was able to swoop in for a second attempt to pick up Kezar after serving as board chair of Aurinia since 2024. He was named CEO last week, alongside several leadership changes that brought in his close associates to the company’s executive team. He has built a reputation for taking over struggling biotech firms.
Aurinia had previously sought to be on the other side of an acquisition. After conducting a “robust strategic review” with J.P. Morgan in 2023, the company approached more than 60 potential buyers. When no deal materialized, Aurinia laid off 25% of its staff and scaled back its R&D pipeline. Today, in addition to its approved drug Lupkynis, the company lists one autoimmune treatment in phase 1 development.
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