Edison issues ADR outlook on Kazia Therapeutics (KZIA)

Rhea-AI Summary

Kazia Therapeutics (NASDAQ:KZIA) is reinitiating its focus on paxalisib, a PI3K inhibitor for treating glioblastoma multiforme (GBM). This drug will enter the innovative GBM AGILE study with patient enrollment expected by the end of 2020. The valuation for Kazia has been set at US$104 million (A$145 million) with a target price of US$10.98 per ADR. Forecasts indicate a peak sales potential of US$450 million, though approximately US$32 million (A$45 million) in capital is needed to reach approval by 2025.

Positive

• Paxalisib is set to enter late-stage trials, targeting glioblastoma multiforme, a significant area in oncology.
• Valuation stands at US$104 million, reflecting investor confidence in the drug's potential.
• Forecasted peak sales of US$450 million highlight significant market opportunity.

Negative

• The company requires an additional US$32 million in capital to advance to drug approval in 2025.

LONDON, UK / ACCESSWIRE / September 2, 2020 / We are reinitiating on Kazia Therapeutics (NASDAQ:KZIA), which is entering late-stage trials for its lead product, paxalisib, for glioblastoma multiforme (GBM). The product is a PI3K inhibitor originally developed by Genentech to cross the blood-brain barrier. The drug is scheduled to be included in the ongoing GBM AGILE study, an innovative investigator-sponsored study testing multiple candidates against the disease, with the first paxalisib patients being enrolled by the end of 2020. We are reinitiating with a valuation of US$104m or US$10.98.

We are reinitiating on Kazia, with new models and assumptions, at US$104m (A$145m) or US$10.98 per ADR. Paxalisib for GBM is our highest value program US$82m (A$115m) and we forecast US$450m peak sales. We expect the company to need US$32m (A$45m) in additional capital to reach approval of paxalisib in 2025.

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SOURCE: Edison Investment Research Limited

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FAQ

What is the current valuation of Kazia Therapeutics (KZIA) as of September 2020?

Kazia Therapeutics is valued at US$104 million (A$145 million) according to the latest report.

What is the expected peak sales figure for paxalisib from Kazia Therapeutics?

The expected peak sales for paxalisib are projected to be US$450 million.

When is the enrollment for patients in the GBM AGILE study expected to begin?

Patient enrollment for the GBM AGILE study is expected to start by the end of 2020.

How much additional capital does Kazia need to reach approval for paxalisib by 2025?

Kazia Therapeutics needs approximately US$32 million (A$45 million) in additional capital to reach approval for paxalisib.