SYDNEY - Kazia Therapeutics Limited (NASDAQ: KZIA), an Australian biotechnology firm, has entered into a licensing agreement with Sovargen Co., Ltd. to develop and commercialize the drug paxalisib for the treatment of certain rare central nervous system (CNS) diseases.
Paxalisib is being considered for use in patients with intractable epilepsy due to focal cortical dysplasia type 2 (FCD T2) and tuberous sclerosis complex (TSC), conditions linked to genetic mutations that cause overactivation of the mTOR pathway.
Kazia is set to receive an initial payment of $1.5 million, with the potential for up to $19 million in milestone payments, as well as royalties on net sales and a percentage of sub-licensing revenues. The agreement excludes mainland China, Hong Kong, Macao, and Taiwan, where Kazia retains rights.
Dr. John Friend, CEO of Kazia, expressed optimism about the licensing, which allows the company to pursue opportunities outside its primary focus on oncology. Sovargen's CEO, Cheolwon Park, anticipates a Phase 2 clinical trial for paxalisib in the latter half of 2024, leveraging the drug's dual inhibition mechanism and safety profile observed in oncology studies.
Paxalisib has been the subject of multiple clinical trials for various brain cancers and has received several designations from the FDA, including Orphan Drug and Fast Track Designations for glioblastoma and other rare pediatric diseases.
Kazia is also developing another drug candidate, EVT801, with a Phase I study in progress and preliminary data expected within the current year.
This announcement is based on a press release statement.
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