Edison issues ADR outlook on Kazia Therapeutics (KZIA)

LONDON, UK / ACCESSWIRE / December 2, 2019 / Kazia Therapeutics (NASDAQ:KZIA) has presented very encouraging initial efficacy data from the dose-ranging stage of its current Phase II trial. The data are sufficient to give Kazia confidence that it can run a large, and potentially pivotal, study starting by mid-CY20. Promising Cantrixil interim data were released in September. FY19 results showed cash of $4.1m now boosted by a $2.9m net placing. Our indicative value remains at c $104m or about US$13/ADR post placing.

Kazia is aiming for a 2024 GDC-0084 US launch. Kazia had c $4m cash at 30 June 2019 and raised $4m gross (c $3m net) in October from issuing 10m shares at A$0.40 each. We estimate ~$11-15m will be needed to fully fund the GDC-0084 potentially pivotal study now expected to start in 2020. A deal after good overall Phase IIa data might be possible. Progression of Cantrixil is assumed to require a partner. We maintain our value of c $104m adjusted to c $13/ADR to account for the 7.2m ADRs.

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