Kezar Ends $400M Shelf After Aurinia Merger, Sets $6.955 Cash Payout

Kezar Life Sciences terminated its $400 million shelf registration after merging with Aurinia, securing a $6.955 cash payout per share plus a non‑transferable contingent value right.

The shelf, filed on February 5 2025 and declared effective February 10 2025, allowed Kezar to sell up to $400 million of common stock over time. On March 30 2026 the company entered into a merger agreement with Aurinia Pharma U.S., Inc., a wholly owned subsidiary of Aurinia Pharmaceuticals (ticker: AUPH).

Under the merger, each Kezar share (excluding treasury, parent‑held, and appraisal‑right shares) was converted into $6.955 in cash and one contingent value right. Kezar’s ticker (KZR) closed at $6.90 on May 10 2026, up 1.2% from the prior day, while Aurinia’s shares slipped 0.4% to $12.38. Kezar’s market capitalization stood at roughly $340 million before the deal.

Following the May 11 2026 effective merger date, Kezar withdrew all unsold shares from its S‑3 registration and terminated any ongoing offerings. The contingent value right will pay additional cash only if Aurinia achieves specified regulatory or commercial milestones related to Kezar’s pipeline.

This move eliminates future dilution from the shelf and provides immediate liquidity to shareholders. Investors should watch for milestone updates that could trigger the contingent value right and for Aurinia’s integration of Kezar’s assets.