SYDNEY - Kazia Therapeutics Limited (NASDAQ: KZIA), a biotechnology firm specializing in oncology, has entered into an exclusive licensing agreement with QIMR Berghofer Medical Research Institute to develop and commercialize combination therapies that include PI3K inhibitor drugs, a class to which Kazia’s leading candidate paxalisib belongs. This new license provides Kazia with worldwide rights to the intellectual property for the development of these drugs in combination with immunotherapy or PARP inhibitors.
The collaboration, which began in December 2022, has yielded supportive patents, including the use of paxalisib as an immune modulator in breast cancer treatment. The terms of the agreement involve an upfront license fee and milestone payments tied to the development stages of the drugs, including the initiation of clinical trials and product approvals.
Kazia’s CEO, Dr. John Friend, highlighted the importance of the agreement, stating it represents a significant step in the company’s efforts to expand its cancer treatment portfolio beyond brain cancers to include solid tumors like breast cancer. Professor Fabienne Mackay, Director and CEO of QIMR Berghofer, expressed optimism about the partnership's potential to bring life-changing treatments to patients.
The ongoing preclinical research collaboration at QIMR Berghofer, led by Professor Sudha Rao, is investigating the use of paxalisib in solid tumors. Results have shown promising efficacy signals, especially when combined with immunotherapies. Further data from these studies is anticipated to be presented at scientific meetings in 2025.
Kazia’s paxalisib is a PI3K / Akt / mTOR pathway inhibitor developed for various forms of brain cancer. It has received Orphan Drug and Fast Track Designations from the FDA for certain indications. Kazia is also developing EVT801, a VEGFR3 inhibitor, with preliminary data expected to be presented in 2024.
The information in this article is based on a press release statement from Kazia Therapeutics Limited.
In other recent news, Kazia Therapeutics has drawn attention with the latest outcomes from its Phase 3 GBM AGILE and Phase 1 EVT801 clinical trials. The company's drug candidate, Paxalisib, demonstrated a survival benefit in a phase II/III clinical trial for the treatment of glioblastoma, a serious brain cancer. The trial revealed a median overall survival of 15.54 months for Paxalisib-treated patients, a significant increase from the 11.89 months observed in patients receiving the current standard of care. Despite not meeting a predefined cutoff point in August 2022, H.C. Wainwright maintains a Buy rating on Kazia Therapeutics, emphasizing the drug's potential in a more targeted demographic.
In addition to Paxalisib, Kazia Therapeutics also reported progress in its EVT801 Phase 1 clinical trial for cancer treatment. The trial involved 26 patients, primarily with advanced ovarian cancer, and 46% of patients displayed stable disease or better after at least three treatment cycles of EVT801. The Safety Review Team recommended a dosage of 400mg twice daily for the phase 2 trials.
These recent developments reflect the company's commitment to advancing cancer treatment options. Kazia Therapeutics plans to present the full findings of the GBM AGILE study and the final stage 1 data of the EVT801 trial at scientific meetings before the end of the year.
InvestingPro Insights
Kazia Therapeutics Limited (NASDAQ: KZIA) is making strides in the field of oncology with its recent licensing agreement, which could potentially enhance its drug development pipeline. As investors consider the implications of this move, recent data and analysis from InvestingPro offer additional insights into the company's financial health and market performance.
One of the key InvestingPro Tips for KZIA is that analysts expect net income to grow this year, reflecting optimism about the company's future profitability. This is particularly relevant given the company's expansion into treatments for solid tumors, which could open up new markets and revenue streams. Additionally, the company is recognized as a niche player in the biotechnology industry, which suggests it has the potential to carve out a unique position with its specialized focus on oncology.
InvestingPro Data indicates a market capitalization of $10.9 million USD, which, while modest, suggests a tightly-knit financial structure that could be nimble in responding to industry changes. Despite not having recorded revenue in the last twelve months as of Q2 2024, KZIA has a significant gross profit margin, which is indicative of its potential to generate profitable returns once its products reach the market. Moreover, the stock has seen a large price uptick over the last six months, with a 76.75% price total return, signaling strong investor confidence in the company's prospects.
For those interested in a deeper dive into the financial metrics and future outlook of Kazia Therapeutics, InvestingPro offers additional tips to help investors make informed decisions. Currently, there are 13 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/KZIA.
It is also worth noting that KZIA's stock generally trades with high price volatility, which may appeal to certain investors looking for dynamic trading opportunities, but it may also require a higher risk tolerance.
These insights can provide context for investors as they assess Kazia's potential, particularly in light of its strategic moves to expand its treatment portfolio and its anticipated preclinical research results.
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