Kezar SVP Chiang Pichi Luo Sells 2,711 Shares for $6.96 Cash and Cancels All Options in Aurinia Merger

*TL;DR – Kezar senior vice president Chiang Pichi Luo tendered 2,711 shares at $6.955 cash per share, received one non‑tradable CVR per share, and now holds no Kezar equity after the Aurinia merger.*

Context On May 11, 2026 Kezar Life Sciences completed its merger with Aurinia Pharma U.S., Inc. The merger agreement required all outstanding Kezar shares to be tendered for cash and a contingent value right (CVR). A CVR is a non‑tradable security that may pay additional cash if future milestones are met.

Key Facts - Luo disposed of 2,711 common shares under the tender offer, receiving $6.955 per share in cash and one CVR for each share. - All employee stock options held by Luo were cancelled at the merger’s effective time. Options with exercise prices between $6.30 and $22.80 were treated as follows: those priced above the cash amount ($6.955) were out‑of‑the‑money and received no payment; those priced below were in‑the‑money and were converted into cash plus CVRs according to the merger formula. - After the transactions, Luo holds zero Kezar shares and no reportable stock options.

What It Means The disposition reflects a routine clean‑up of insider equity in a change‑of‑control event. Luo’s cash proceeds total roughly $18,850 (2,711 × $6.955), plus the same number of CVRs that could generate future payouts. The cancellation of out‑of‑the‑money options eliminates any potential dilution for remaining shareholders, while the conversion of in‑the‑money options aligns Luo’s residual interest with the merger’s contingent payout structure.

For investors, Luo’s exit does not signal market timing or confidence in post‑merger performance; it simply follows the merger’s prescribed treatment of insider holdings. The CVRs now represent Luo’s only exposure to Kezar’s future milestones, a factor to monitor as Aurinia integrates Kezar’s pipeline.

Looking Ahead Watch for Aurinia’s progress on the CVR milestones and any subsequent insider activity that could indicate shifts in confidence after the integration settles.