Kazia Therapeutics Ltd (ASX:KZA) (NASDAQ:KZIA) substantial shareholder Hishenk Pty Ltd has reiterated its confidence in the biotechnology company’s oncology drug development by increasing its interest to 17.4% from 13.8%.
The holding of the Sydney-based investor was boosted to 10.835 million shares on June 26 with another 1.844 million shares accumulated.
Since October 3 last year Hishenk and related entities have participated in a placement and purchased shares on-market, increasing the holding from around 6.685 million shares.
Today Kazia traded up almost 4% to A$0.40.
Edison Investment Research has recently assigned an indicative valuation range of A$84–135 million or A$1.35–2.17 per share for the company.
This follows identification of a higher maximum tolerated dose (MTD) from a Phase IIa study of its brain-penetrant phosphoinositide 3-kinase (PI3K) inhibitor GDC-0084 in glioblastoma (GBM).
The result may lead to improved efficacy in the ongoing expansion cohort and planned Phase IIb study.
READ: Kazia Therapeutics to collaborate with US-based oncology foundation on clinical trials for metastatic brain cancer treatment
GBM multiforme is the most common and aggressive form of primary brain cancer, with chemotherapy treatment temozolomide only effective in one-third of patients.
Furthermore, the median survival rate is 12-15 months from diagnosis, meaning there is demand in the market for superior treatments.
Kazia is developing GDC-0084, a brain penetrant PI3K inhibitor licensed from Genentech, and a third-generation benzopyran drug, Cantrixil.
A new collaboration with the Alliance for Clinical Trials in Oncology means Kazia will soon have four clinical trials of GDC-0084 underway in primary or secondary brain cancers.
Further data from the Cantrixil Phase I study in ovarian cancer expected in the second half of 2019.