- FDA grants two Orphan Drug
Designations to KZR-616 for the treatment of Dermatomyositis (DM)
and Polymyositis (PM)
- KZR-616 clinical and
pre-clinical data continues to support its potential to positively
affect multiple drivers of immune-mediated diseases
- KZR-261 IND submission
on-track for Q1 2021
Kezar Life Sciences, Inc. (Nasdaq: KZR), a clinical-stage
biotechnology company discovering and developing breakthrough
treatments for immune-mediated and oncologic disorders, today
announced its third-quarter 2020 financial results and corporate
highlights.
“The third quarter of 2020 saw continued momentum for Kezar,
punctuated by the U.S. FDA granting Orphan Drug Designations for
our lead candidate KZR-616 for the treatment of polymyositis and
dermatomyositis,” said John Fowler, Kezar’s Co-Founder and Chief
Executive Officer. “In addition, our presentations at a number of
medical and scientific meetings this fall highlight the compelling
therapeutic potential of our two highly novel programs in
immunoproteasome inhibition and the protein secretion pathway. With
each step forward, our conviction deepens that Kezar’s novel small
molecule approaches in autoimmunity and oncology could have
profound impacts on a wide array of diseases with high unmet
need.”
Clinical Highlights & Updates
KZR-616: Selective Immunoproteasome Inhibitor
KZR-616 is currently being evaluated for the treatment of severe
autoimmune diseases.
- In October 2020, Orphan Drug Designations (ODD) were granted
for KZR-616 in both dermatomyositis (DM) and polymyositis (PM) by
the U.S. Food and Drug Administration (FDA). Both orphan diseases
are autoimmune inflammatory myopathies that are chronic and
debilitating diseases characterized by marked morbidity and
mortality. The estimated prevalence of DM and PM in the United
States is up to 71,000 and 51,000, respectively. Orphan Drug
Designation can provide certain benefits for the development of
KZR-616, including a period of marketing exclusivity for the first
marketing application, if approved for the designated indication,
certain tax credits and waiver of certain administrative fees.
- The MISSION Phase 2 trial in patients with active,
proliferative lupus nephritis (LN) opened for enrollment under a
new protocol in August 2020. The primary efficacy endpoint for the
trial is the number of patients achieving a renal response measured
by a 50% or greater reduction in urine protein to creatinine ratio
(UPCR) at six months.
- Interim data are expected in late 2021, and topline data are
expected in the first half of 2022. To allow for responding
patients to continue treatment with KZR-616, a 12-month extension
study will also be made available.
- Updated results from the MISSION Phase 1b portion were
presented at the American College of Rheumatology Annual Meeting
(ACR Convergence 2020) in November 2020. These results indicate
that KZR-616 60mg administrated subcutaneously weekly is
well-positioned for development as a long-term treatment option in
autoimmune disease.
- The PRESIDIO Phase 2 trial of KZR-616 in polymyositis (PM) and
dermatomyositis (DM) continues to enroll. A 12-month open-label
extension study has been initiated for patients completing the
placebo-controlled trial.
- Topline data are expected in the first half of 2022.
- Pre-clinical results of KZR-616 in a murine model of
polymyositis were presented during ACR Convergence 2020. The
results provide a rationale for targeting selective
immunoproteasome inhibition for the treatment of polymyositis.
KZR-261: Protein Secretion Program
- KZR-261, a first-in-class protein secretion inhibitor, targets
the Sec61 translocon and has demonstrated broad anti-tumor activity
in preclinical models of both solid and hematologic malignancies.
Additional preclinical data further detailing the ability of novel
small molecule Sec61 inhibitors to target multiple checkpoint
proteins on various cell populations, thereby offering the
potential of combination therapy in a single compound, are being
presented during the 8th Annual Meeting of the International
Cytokine & Interferon Society (Cytokines 2020) and the Society
for the Immunotherapy of Cancer (SITC) in November 2020.
- An Investigational New Drug (IND) application for KZR-261 is
on-track for a planned submission in the first quarter of 2021. The
Phase 1 clinical trial will evaluate dose escalation and safety and
tolerability in patients with solid tumors to begin shortly after
IND acceptance.
Third-Quarter 2020 Financial Results
- Cash, cash equivalents and marketable securities totaled
$150.0 million as of September 30, 2020, compared to $78.2 million
as of December 31, 2019. The increase in cash, cash equivalents and
marketable securities was primarily attributable to the net
proceeds from Kezar’s underwritten public offerings in February and
June 2020, net of cash used by the Company in operations to advance
its clinical stage programs and preclinical research and
development.
- Research and development expenses for the third quarter
of 2020 increased by $1.2 million to $8.3 million, compared to $7.1
million in the third quarter of 2019. This increase was primarily
related to advancing both the KZR-616 clinical program in multiple
indications and the protein secretion preclinical program.
- General and administrative expenses for the third
quarter of 2020 increased by $0.7 million to $3.3 million, compared
to $2.6 million in the third quarter of 2019. The increase was
primarily due to an increase in personnel expenses, including
non-cash stock-based compensation, legal and professional
fees.
- Net loss for the third quarter of 2020 was $11.3
million, or $0.23 per basic and diluted common share, compared to a
net loss of $9.1 million, or $0.48 per basic and diluted common
share, for the third quarter of 2019.
- Total shares of common stock outstanding were 46.3
million as of September 30, 2020. Additionally, there were
outstanding pre-funded warrants to purchase 3.8 million shares of
common stock at an exercise price of $0.001 per share and
outstanding options to purchase 4.5 million shares of common stock
at a weighted average exercise price of $6.12 per share as of
September 30, 2020.
About KZR-616
KZR-616 is a novel, first-in-class, selective immunoproteasome
inhibitor with broad therapeutic potential across multiple
autoimmune diseases. Preclinical research demonstrates that
selective immunoproteasome inhibition results in a broad
anti-inflammatory response in animal models of several autoimmune
diseases, while avoiding immunosuppression. Data generated from
Phase 1a and 1b clinical trials provide evidence that KZR-616
exhibits a favorable safety and tolerability profile for
development in severe, chronic autoimmune diseases. Phase 2 trials
are underway in severe autoimmune diseases.
About KZR-261
KZR-261, a novel, first-in-class protein secretion inhibitor, is
the first clinical candidate to be nominated from Kezar’s research
and discovery efforts targeting protein secretion pathways. KZR-261
is a broad-spectrum anti-tumor agent that acts through direct
interaction and inhibition of Sec61 activity. The compound was
discovered by Kezar through a robust medicinal chemistry campaign
in which several scaffolds were progressed through the company’s
proprietary platform evaluating Sec61 modulation. As a result,
Kezar has established a broad library of protein secretion
inhibitors. KZR-261 has demonstrated several encouraging properties
that lead to its potential to be an anti-cancer agent for the
treatment of solid and hematologic malignancies. IND-enabling
activities are currently underway, and an IND submission in solid
tumors is expected to be filed in the first quarter of 2021.
About Kezar Life Sciences
Based in South San Francisco, Kezar Life Sciences is combining
courage, conviction and cutting-edge science to develop
breakthrough treatments for immune-mediated and oncologic
disorders. The company is pioneering first-in-class, small-molecule
therapies that harness master regulators of cellular function and
inhibit multiple drivers of disease via a single target. KZR-616, a
first-in-class selective immunoproteasome inhibitor, is being
evaluated in severe and underserved autoimmune diseases.
Additionally, KZR-261, the first clinical candidate for the
treatment of cancer from the company’s protein secretion program
targeting the Sec61 translocon, is undergoing IND-enabling
activities. For more information, visit
www.kezarlifesciences.com.
Cautionary Note on Forward-looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as “may,” “will,” “should,” “expect,” “believe”
and similar expressions (as well as other words or expressions
referencing future events, conditions or circumstances) are
intended to identify forward-looking statements. These
forward-looking statements are based on Kezar’s expectations and
assumptions as of the date of this press release. Each of these
forward-looking statements involves risks and uncertainties that
could cause Kezar’s clinical development programs, future results
or performance to differ materially from those expressed or implied
by the forward-looking statements. Forward-looking statements
contained in this press release include, but are not limited to,
statements about the company’s financial position and the timing
and amount of future operating expenses, the design, progress,
timing, scope and results of clinical trials, the anticipated
timing of disclosure of results of clinical trials, plans for
initiating future clinical trials and extension studies, the
likelihood data will support future development, the association of
data with treatment outcomes, the likelihood of obtaining
regulatory approval of Kezar’s product candidates, the timing of
regulatory filings, and the discovery and development of new
product candidates. Orphan Drug Designation does not provide any
assurance of regulatory approval or expedite regulatory review.
Many factors may cause differences between current expectations and
actual results, including the impacts of the COVID-19 pandemic on
the company’s business, clinical trials and financial position,
unexpected safety or efficacy data observed during preclinical or
clinical studies, clinical trial site activation or enrollment
rates that are lower than expected, changes in expected or existing
competition, changes in the regulatory environment, the
uncertainties and timing of the regulatory approval process, and
unexpected litigation or other disputes. Other factors that may
cause actual results to differ from those expressed or implied in
the forward-looking statements in this press release are discussed
in Kezar’s filings with the U.S. Securities and Exchange
Commission, including the “Risk Factors” contained therein. Except
as required by law, Kezar assumes no obligation to update any
forward-looking statements contained herein to reflect any change
in expectations, even as new information becomes available.
KEZAR LIFE SCIENCES, INC.
Selected Balance Sheets Data
(in thousands)
September 30, 2020
December 31, 2019
(unaudited)
Cash, cash equivalents and marketable
securities
$
149,954
$
78,206
Total assets
161,210
89,513
Total current liabilities
6,193
6,003
Total stockholders' equity
150,323
78,046
KEZAR LIFE SCIENCES, INC.
Condensed Consolidated Statements of
Operations
(Unaudited, In thousands except share and
per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
(unaudited)
(unaudited)
Operating expenses:
Research and development
$8,259
$7,080
$22,864
$19,932
General and administrative
3,292
2,601
9,018
7,413
Total operating expenses
11,551
9,681
31,882
27,345
Loss from operations
(11,551)
(9,681)
(31,882)
(27,345)
Interest income
262
533
1,081
1,837
Net loss
($11,289)
($9,148)
($30,801)
($25,508)
Net loss per common share, basic and
diluted
($0.23)
($0.48)
($0.73)
($1.34)
Weighted-average shares used to compute
net loss per common share, basic and diluted
49,999,239
19,095,870
41,964,042
19,070,937
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version on businesswire.com: https://www.businesswire.com/news/home/20201105006062/en/
Celia Economides SVP, Strategy & External Affairs
IR@kezarbio.com
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