Kazia Therapeutics (KZIA) shares plummeted after the U.S. Food and Drug Administration (FDA) announced it would not support accelerated approval for paxalisib, a drug intended to treat glioblastoma. The decision was revealed on Tuesday, leading to a 26% drop in Kazia's stock price to $2.28 in morning trading; the stock is down approximately 48% this year.
The FDA has communicated that while accelerated approval is not an option, it would consider data supporting a standard approval pathway, contingent on the results of a pivotal registrational study. This decision follows a previous trial in July where paxalisib demonstrated a clinically meaningful improvement in overall survival, causing Kazia's stock to more than quadruple at the time.
Path Forward: Phase 3 Study
Kazia Therapeutics and the FDA have aligned on several key elements for an upcoming Phase 3 study. These include the patient population and the primary endpoint, which are critical for designing a study that could potentially support standard approval. Further details regarding the study design and timeline have not yet been disclosed.
Paxalisib's Mechanism and Previous Trials
Paxalisib is an investigational new drug. The previous trial that spurred initial optimism involved patients with glioblastoma. While specific data from the July trial were not included in the announcement, the overall survival benefit was significant enough to warrant further investigation, according to Kazia. The company will now focus on generating the data required for a standard approval submission, based on the FDA's feedback.
