Kazia Therapeutics

AU: KZA

AU$30m market cap

AU$0.32 last close

Kazia Therapeutics has two clinical stage anti-cancer drugs: GDC-0084 (targeting glioblastoma) and Cantrixil (targeting ovarian cancer). GDC-0084 was inlicensed from Genentech, and Kazia is seeking other in-licence opportunities.

Investment summary

Kazia Therapeutics has presented very encouraging initial efficacy data from the dose-ranging stage of its current Phase II trial. The data are sufficient to give Kazia confidence that it can run a large, and potentially pivotal, study starting by mid-CY20. Promising Cantrixil interim data were released in September. FY19 results showed cash of $4.1m now boosted by a $2.9m net placing. Our indicative value remains at c $104m or about US$13/ADR post placing.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 2.9 (10.9) (11.0) (22.2) N/A N/A
2019A 1.5 (7.6) (7.7) (12.9) N/A N/A
2020E 1.5 (8.7) (8.7) (12.6) N/A N/A
2021E 1.5 (11.1) (11.1) (17.9) N/A N/A
Industry outlook

Kazia’s two drug technology platforms are GDC-0084, a PI3K inhibitor licensed from Genentech, and Cantrixil, an intra-peritoneal formulation of a novel cytotoxic drug. Kazia is recruiting a 20-patient expansion cohort in its current GDC-0084 Phase II. If initial efficacy is indicated at a 60mg dose, Q419 data could trigger a Phase IIb randomised study and potential partnering by 2023.

Last updated on 20/06/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (A$m) 0.5
Forecast gearing ratio (%) N/A
Key management
Iain Ross Chairman
James Garner CEO

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