Kazia Therapeutics lands trifecta of licensing deals in March quarter, leaving it "a vastly stronger and more substantial business"

Kazia Therapeutics Ltd (ASX:KZA) (NASDAQ:KZIA) (FRA:NV9M) has kicked off 2021 with a trifecta of March quarter licensing deals, leaving it  "a vastly stronger and more substantial business", according to CEO Dr James Garner. During the quarter, the oncology-focused drug development company saw maiden revenue of A$5.3 million and its cash position increased to A$19.7 million by the end of March.  Reflecting on its strong progress, shares in the company have risen from A$0.77 cents at the market close on November 4 to A$1.88 on April 8, a new high of almost six years, while the market cap is about A$179.5 million. Highlights Highlights during the quarter include: ➢ Worldwide rights to legacy Cantrixil asset licensed to Oasmia Pharmaceutical AB for US$4 million upfront, up to $42 million in contingent milestones, and double-digit royalties on commercial sales; ➢ Greater China rights to paxalisib licensed to Simcere Pharmaceutical Group Ltd for US$11 million upfront, up to US$281 million in contingent milestones, and mid-teen royalties on commercial sales; and. ➢ Recruitment to GBM AGILE pivotal study of paxalisib in glioblastoma commenced in January 2021. Deliver well from current pipeline Chief executive officer Dr James Garner said: “Calendar 2021 has commenced with a trifecta of licensing transactions, including the license of Cantrixil to Oasmia, the partnership with Simcere for paxalisib in Greater China, and, post-period, our agreement with Evotec SE for worldwide rights to EVT801. “In aggregate, these transactions leave Kazia a vastly stronger and more substantial business, with a diversified pipeline of world-class oncology assets, as well as providing near-term cash inflows of approximately A$20 million. “Moreover, our ability to execute multiple complex cross-border partnering transactions demonstrates the viability of Kazia’s business model, and positions the company well to deliver value from its current pipeline.” Cantrixil with Oasmia Pharmaceutical On March 1, 2021, Kazia entered into a worldwide licensing agreement with Oasmia Pharmaceutical for Cantrixil, a novel, small-molecule, anticancer therapeutic. Cantrixil’s Phase I clinical trial in ovarian cancer had shown encouraging results and Kazia had previously indicated that it considered Cantrixil non-strategic and would seek to partner the asset for further development. Paxalisib with Simcere Pharmaceutical On March 29, 2021, Kazia completed a licensing transaction with Simcere Pharmaceutical, a leading Chinese pharmaceutical company, for paxalisib, Kazia’s lead program, for brain cancer. The licence comprises mainland China, Taiwan, Hong Kong, and Macau, a region representing around 8-10% of the global pharmaceutical market. Aside from GBM AGILE, the costs of development, registration and commercialisation in the territory will be borne by Simcere. The transaction provides the paxalisib program with essential expertise and resources to commercialise in the world’s second-largest pharmaceutical market. GBM AGILE starts recruitment to paxalisib arm The first site in GBM AGILE (NCT03970447) to open to the paxalisib arm commenced recruitment on January 7, 2021. The paxalisib arm being rolled out to the almost 40 sites currently open in GBM AGILE across the US and Canada. Expansion to the EU and China is expected later this year. In-licensing of EVT801 Post the March quarter, Kazia licensed worldwide rights to EVT801, a small-molecule, first-in-class, selective inhibitor of VEGFR3, from Evotec SE (OTCMKTS:EVTCY) (FRA:EVT). EVT801 is expected to act as an inhibitor of lymphangiogenesis, the process by which a developing tumour recruits a network of lymphatic vessels to supply it with essential nutrients and resources. Kazia expects to launch a Phase I, first-in-human clinical trial of EVT801 in Europe by the end of 2021. The company has entered into a master services agreement with Evotec to support, among other activities, the manufacture of investigational product and the deployment of sophisticated biomarker analyses to assess the pharmacodynamic effects of EVT801. Licensing of EVT801 is consistent with Kazia’s declared strategy of building a portfolio of high-quality development candidates through in-licensing from other companies. The addition of a compelling second asset to the company’s portfolio provides critical diversification and scale to the business, as it moves towards the commercialisation of its lead asset.