Kazia Therapeutics Ltd (ASX:KZA, NASDAQ:KZIA) has raised more than A$7 million from a round of equity financing.
The raise was broken into a placement to sophisticated and institutional investors which resulted in $4.5 million and a share purchase plan (SPP), which brought in $2.606 million.
The SPP closed on February 24.
“We are grateful for the emphatic support of our shareholders,” Kazia Therapeutics chairman Iain Ross said.
“The proceeds of this financing will help the company to deliver a number of key read-outs during CY2023, which we expect to materially advance the development of our two assets, and in particular to position paxalisib for its further development and ultimate commercialisation.”
Use of funds
KZA will use the money towards its R&D pipeline, which comprises two assets in nine clinical trials. The pipeline has several inflection points expected in CY2023, which the oncology-focused drug development company believes have the potential to substantially revalue its' paxalisib and EVT801 development candidates.
The company notes, that cash inflows provide a runway to 4Q CY2023 on current cashflow forecasts.
Shares for the placement have been distributed, with SPP shares to be issued on March 3.
About KZA
KZA’s lead program paxalisib, is a brain-penetrant inhibitor of the PI3K / Akt / mTOR pathway, which is being developed to treat multiple forms of brain cancer.
Licensed from Genentech in late 2016, paxalisib is or has been the subject of 10 clinical trials in this disease. A completed phase II study in glioblastoma reported promising signals of efficacy in 2021, and a pivotal study for registration, GBM AGILE, is ongoing, with final data expected in CY2023.
Other clinical trials are ongoing in brain metastases, diffuse midline gliomas and primary CNS lymphoma, with several of these having reported encouraging interim data.
Paxalisib was granted Orphan Drug Designation for glioblastoma by the US FDA in February 2018, and Fast Track Designation for glioblastoma by the US FDA in August 2020. It was also granted Rare Pediatric Disease Designation and Orphan Designation by the US FDA for DIPG in August 2020, and for atypical teratoid/rhabdoid tumours (AT/RT) in June 2022 and July 2022, respectively.
Kazia is also developing EVT801, a small-molecule inhibitor of VEGFR3, which was licensed from Evotec SE in April 2021. Preclinical data has shown EVT801 to be active against a broad range of tumour types and has provided compelling evidence of synergy with immuno-oncology agents. A phase I study commenced recruitment in November 2021.