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SYDNEY - Kazia Therapeutics Limited (NASDAQ: KZIA), a micro-cap biotech company with a market capitalization of $4.97 million specializing in oncology drug development, has received a research grant from The Michael J. Fox Foundation for Parkinson’s Research (MJFF). According to InvestingPro data, the company’s stock has seen significant volatility, currently trading near its 52-week low of $0.85, down from its high of $15.80. This grant will fund a collaboration with The Hebrew University of Jerusalem to investigate paxalisib as a potential treatment for Parkinson’s disease (PD).
The preclinical studies, led by Professor Ronit Sharon at Hebrew University, aim to establish a connection between paxalisib’s mechanism of action and PD pathophysiology. Paxalisib, a brain-penetrating PI3K inhibitor, will be evaluated for its effects on survival, motor function, and various disease biomarkers in mouse models. With the company’s upcoming earnings report scheduled for February 28, 2025, InvestingPro subscribers can access 12 additional key insights about Kazia’s financial health and market position.
Dr. John Friend, CEO of Kazia, expressed enthusiasm for the collaboration, highlighting the importance of addressing the underlying pathophysiology of PD. The research will focus on the drug’s ability to inhibit a specific phosphorylation reaction associated with neuronal degeneration in PD.
The study builds on previous findings that suggest a role for the PI3K/AKT/mTORC pathway in PD development. The grant will support further exploration of paxalisib’s therapeutic potential, with findings expected to offer valuable insights into its efficacy as a PD treatment.
Kazia Therapeutics, based in Sydney, has been developing paxalisib for various brain cancers, with multiple clinical trials underway. The drug has received Orphan Drug and Fast Track Designations from the FDA for certain brain cancers. The company is also working on EVT801, a VEGFR3 inhibitor, with preliminary data presented in September 2024. Despite reporting negative EBITDA of -$17.74 million, InvestingPro analysis suggests the stock may be undervalued at current levels, presenting a potential opportunity for investors interested in the biotech sector.
The information for this article is based on a press release statement.
In other recent news, Kazia Therapeutics has finalized a registered direct offering expected to raise approximately $2 million. The company will issue up to 1,333,333 American Depositary Shares (ADSs) at $1.50 per ADS, with unregistered warrants for an equivalent number of ADSs. Maxim Group LLC is acting as the exclusive placement agent for this offering. Additionally, Kazia has aligned with the FDA on the study design for its brain cancer drug, paxalisib. The FDA has indicated that while current data does not support accelerated approval, it may be considered for traditional approval following a pivotal phase 3 study. The agency provided guidance on the patient population and primary endpoint for this trial. Paxalisib is being investigated for other indications, including pediatric brain cancer and brain metastases. Kazia plans to outline its strategy for NDU glioblastoma by the end of January 2025.
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