Kazia Therapeutics

NASDAQ: KZIA

Market Cap$9m

Last Close $0.6

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 and in early-stage studies in childhood brain cancers, DIPG and AT/RT. The other asset is the Phase I drug EVT801, an inhibitor of VEGFR3.

Investment summary

Kazia is developing the anti-cancer compound paxalisib (GDC-0084) for glioblastoma (GBM). Paxalisib is a PI3K inhibitor, a well understood class with activity across a wide range of tumour types and multiple previously approved drugs. Paxalisib, unlike other drugs of this class, can cross the blood brain barrier (BBB), opening the potential to treat cancers of the brain. Paxalisib has not progressed to stage 2 of the Phase III GBM AGILE study, however the data from this, expected in the second half of CY23, may still support registration. A Phase II trial (PNOC022), investigating the combination of ONC201 (a dopamine D2 receptor antagonist) and paxalisib in the treatment of diffuse midline glioma and diffuse intrinsic pontine glioma (DIPG), was recently expanded to two new sites.

Y/E Jun	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (c)	P/E (x)	P/CF (x)
2021A	10.5	(3.1)	(3.1)	(0.25)	N/A	N/A
2022A	0.0	(14.6)	(14.6)	(1.08)	N/A	N/A
2023E	0.0	(18.6)	(18.6)	(1.23)	N/A	N/A
2024E	10.6	(16.8)	(16.8)	(1.11)	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 multibillion-dollar angiogenesis cancer market.

Last updated on 30/11/2022