Kazia Therapeutics Ltd (ASX:KZA) (NASDAQ:KZIA) (FRA:NV9) is in a trading halt pending an announcement in regard to a potential in-licensing transaction.
In its application to the ASX for the halt, Kazia stated the announcement was pending the conclusion of negotiations.
The trading halt will remain in place until the beginning of regular trade on Tuesday, April 20, or when an announcement is released to the market, whichever occurs earliest.
Increased price target
Recently, the company secured an increased price target from A$2.25 to A$2.60 a share from Corporate Connect analyst Marc Sinatra on the back of two recent licensing deals.
The company signed a licensing deal with China-based Simcere Pharmaceutical Group Limited (HKSE:2906) for paxalisib in Greater China and earlier in March with Oasmia Pharmaceutical AB (STO: OASM) (OTCMKTS:OASMY) for worldwide rights to Cantrixil.
Deals rated A+
Sinatra has rated both these deals A+, stating: “Licensing deals are the lifeblood of small pharmaceutical companies, representing their exit from the development of a molecule, often in a staged manner, and a coalescing of the value they have added to a compound.
“When an Australian pharmaceutical company does two licensing transactions within the space of a month, which is something we have never seen before, that company demands attention.”
Kazia shares last traded at A$1.53 before the halt and the company’s market cap is approximately A$193.7 million.