Kazia Therapeutics (KZIA): Doubling Down on Clinical Development

Rhea-AI Summary

Kazia Therapeutics reported busy FY22 results focusing on its oncology pipeline. The year featured positive data from preclinical and clinical programs, especially in childhood brain cancers. However, the lead asset paxalisib did not advance to Stage 2 in the Phase III GBM AGILE study for glioblastoma multiforme. The company's net cash at year-end stood at US$5.3m, needing an estimated US$50m more to reach break-even. Valuation remains at US$146.6m, with per basic ADR dropping to US$9.42 due to share count increase.

Positive

• Encouraging data from preclinical and clinical programs, especially in rare childhood brain cancers.
• Net cash position of US$5.3m at the end of FY22.

Negative

• Paxalisib did not graduate to Stage 2 of the Phase III GBM AGILE study.
• Estimated need for an additional US$50m before reaching break-even.
• Per ADR valuation decreased from US$10.86 to US$9.42 due to increased share count.

LONDON, UK / ACCESSWIRE / September 7, 2022 / Kazia Therapeutics' FY22 results recapped a busy year focused on strengthening its oncology-focused pipeline. While the year was marked by encouraging data readouts from several preclinical/clinical programs (particularly in rare childhood brain cancers and brain metastases), this was partially offset by recent news that lead asset paxalisib (PI3K/mTOR inhibitor) has not graduated to Stage 2 of the Phase III GBM AGILE study in glioblastoma multiforme (GBM). Final survival and response data from the fully blinded study are expected in H2 CY23. Net cash at the end of FY22 was US$5.3m, bolstered by a US$2.5m injection from the at-the-market (ATM) facility and we estimate the need of another c US$50m before break-even. Our valuation remains largely unchanged at US$146.6m and the per basic ADR calculation decreases to US$9.79, reflecting the updated share count with the recent equity raise.

We have rolled forward our model to include the FY22 results, reflect the latest FX rates and incorporate the latest pro forma net cash figure in our valuation. Our overall valuation for Kazia remains largely unchanged at US$146.6m. However, the per ADR valuation decreases to US$9.42 (US$10.86/ADR previously) with the additional c 10 million shares due to the utilization of the ATM facility.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Soo Romanoff +44 (0)20 3077 5700 healthcare@edisongroup.com
Dr Harry Shrives +44 (0)20 3077 5700 healthcare@edisongroup.com
Jyoti Prakash +44 (0)20 3077 5700 healthcare@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn www.linkedin.com/company/edison-group-/
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv

SOURCE: Edison Investment Research Limited

View source version on accesswire.com:
https://www.accesswire.com/714986/Kazia-Therapeutics-KZIA-Doubling-Down-on-Clinical-Development

FAQ

What were Kazia Therapeutics' FY22 results?

Kazia Therapeutics focused on its oncology pipeline, reporting positive data in childhood brain cancers but setbacks in the Phase III GBM AGILE study.

What is the status of the paxalisib asset for Kazia?

Paxalisib did not advance to Stage 2 in the Phase III GBM AGILE study for glioblastoma multiforme.

How much cash does Kazia Therapeutics have?

Kazia reported a net cash position of US$5.3m at the end of FY22.

What is the valuation of Kazia Therapeutics?

Kazia's valuation remains at US$146.6m, with the per ADR valuation decreasing to US$9.42 after share count adjustments.

What is the estimated cash requirement for Kazia to reach break-even?

Kazia estimates a need of approximately US$50m before reaching break-even.