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Kazia (ASX:KZA) share price slides despite positive update

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The Kazia Therapeutics Ltd (ASX: KZA) share price is backtracking today despite announcing encouraging data from its paxalisib phase II study. At the time of writing, the biotech company’s shares are fetching $1.81, down 3.72%.

What did Kazia update the ASX with?

Investors appear unfazed by the company’s latest release, sending Kazia shares lower.

In its announcement, Kazia shared some key points of its ongoing phase II study of paxalisib in glioblastoma – a common and very aggressive type of brain cancer.

They are as follows:

  • Pharmacokinetic (PK) data which shows how long paxalisib remains in the human body, strongly supports 60 milligrams once daily dosing.
  • Analysis of food effect shows no significant difference between taking paxalisib with food compared on an empty stomach.
  • Study remains ongoing, with a number of patients still in follow-up phase.

The final data is expected to be released in the second-half of the current calendar year.

Kazia noted that the data is subject to a poster presentation at the Association of Cancer Research (AACR) annual meeting. The virtual event will run from 10 April to 15 April, and from 17 May to 21 May.

Words from the CEO

Kazia CEO, Dr James Garner commented:

This is extremely useful and encouraging data, as we begin to compile regulatory documentation for paxalisib and give shape to its potential commercial approval. These results give us great confidence that we are administering the drug at the right dose, at the right frequency, and under the correct conditions. Moreover, the data helps to confirm the approach that we have taken in the GBM AGILE pivotal study.

Dr Garner went on to further add:

A lot of our efforts at present are focused on assembling the complex package of scientific information that is required to secure FDA approval for any new drug. Today’s data provides one more piece in that jigsaw. More broadly, the phase II study is drawing to a conclusion, and we expect to be able to share final data in the second half of this year.

Kazia share price summary

Over the past 12 months, the Kazia share price has soared more than 300%, reflecting positive investor sentiment. Year-to-date alone, the company’s shares have gained above 50% for shareholders.

Based on the current share price, Kazia commands a market capitalisation of roughly $230.3 million, with 126.5 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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