Kezar Life Sciences, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Maury Raycroft from Jefferies downgraded the rating on the stock to a Hold and gave it a $7.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Maury Raycroft has given his Hold rating due to a combination of factors surrounding Kezar Life Sciences. The company faced a setback as it could not reach an agreement with the FDA on a registrational pathway for its lead asset, zetomipzomib, in treating autoimmune hepatitis. This development has led Kezar to initiate a formal process to explore strategic alternatives, which introduces uncertainty about the company’s future direction.
Additionally, the probability of success for zetomipzomib in the autoimmune hepatitis program was lowered from 25% to 10%, and the price target was significantly reduced from $18 to $7, reflecting the company’s current cash position. The FDA’s request for a standalone pharmacokinetic study in patients with significant hepatic impairment and the requirement for extensive patient monitoring in clinical trials are expected to delay future trials by approximately two years. These challenges, along with the extension of the company’s rights plan, contribute to the Hold rating as the company navigates these uncertainties while exploring ways to maximize shareholder value.
KZR’s price has also changed slightly for the past six months – from $4.060 to $4.170, which is a 2.71% increase.