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Kazia Therapeutics

US: KZIA

Market Cap$58m

Last Close $4.19

Kazia Therapeutics is a late-stage clinical pharmaceutical company with lead asset paxalisib (a PI3K inhibitor that can cross the BBB, licensed from Genentech), in a pivotal study for GBM. It also recently in-licensed the Phase I drug EVT801, an inhibitor of lymphangiogenesis in tumors.

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Investment summary

In an encouraging development for Kazia Therapeutics’ efforts towards combating pediatric brain cancers, its lead drug paxalisib has received orphan drug designation (ODD) from the FDA for the treatment of atypical teratoid/rhabdoid tumors (AT/RT). AT/RT is a rare and aggressive childhood brain cancer with a five-year survival rate of c 32%. Approximately 600 people are living with the cancer in the United States, with around 60 new cases reported each year. The ODD accords seven years of market exclusivity in the US on approval, in addition to possible grant funding and tax credits. Kazia is undertaking preclinical studies in AT/RT and has recently presented encouraging data from combination studies in xenograft models. As a reminder, paxalisib already has ODD in malignant gliomas, including glioblastoma (GBM) and diffuse intrinsic pontine glioma (DIPG). Our valuation is unchanged at US$294m or US$22.28/ADR. Please see our Deep dive into childhood brain cancer note, published on 24 May.

Y/E Jun
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 0.8 (7.8) (7.8) (1.04) N/A N/A
2021A 11.0 (3.2) (3.2) (0.26) N/A N/A
2022E 0.0 (17.2) (17.2) (1.27) N/A N/A
2023E 0.0 (19.9) (19.9) (1.47) N/A N/A
Industry outlook

GBM is the most common primary cancer of the brain with c 12,500–13,000 new cases reported in the United States per year. There are very limited treatment options for GBM and there is a very low survival rate. Paxalisib is currently being developed for use in the adjuvant setting after initial resection and radiation treatment. EVT801 will target the multi billion dollar angiogenesis cancer market.

Last updated on 01/07/2022
Content on Kazia Therapeutics
Kazia Therapeutics – Paxalisib receives ODD for AT/RT
Healthcare | research Flash note | 21 June 2022
Kazia Therapeutics – Deep dive into childhood brain cancer
Healthcare | research ADR Update | 24 May 2022
View more
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Share price graph
Balance sheet
Forecast net cash (US$m) 4.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (27.3) (47.7) (56.9)
Relative* (22.0) (37.8) (51.3)
52-week high/low US$12.0/US$4.1
*% relative to local index
Key management
Iain Ross Chairman
James Garner CEO
Karen Krumeich CFO
John Friend CMO

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