Aurinia Pharmaceuticals to Acquire Kezar Life Sciences for Cash and Contingent Value Rights

On March 30, 2026, Aurinia Pharmaceuticals Inc. (Aurinia) announced a definitive agreement to acquire Kezar Life Sciences, Inc. (Kezar) through a tender offer. Under the terms of the agreement, Aurinia will pay $6.955 per share in cash plus one Contingent Value Right (CVR) per share. The CVR entitles Kezar stockholders to potential future cash payments, including 100% of Kezar's Closing Net Cash exceeding $50 million, and various percentages (90-100%) of net proceeds from existing agreements with Enodia Therapeutics and Everest Medicines. Additionally, the CVR includes milestones of up to $88 million and 3% royalties related to the development of zetomipzomib legacy assets if certain clinical and sales targets are met within a 10-year period. The transaction is expected to close in the second quarter of 2026, subject to a minimum tender of 50% of outstanding shares and a closing net cash requirement of at least $50 million. Kezar's board has unanimously recommended the offer. Tang Capital Partners, holding approximately 9% of Kezar, has entered into a support agreement to tender its shares.