Kazia Therapeutics Limited (NASDAQ: KZIA) announced today the sale of all intellectual property and trademark rights for its oncology drug candidate Cantrixil to Vivesto for USD $1 million. The transaction provides Kazia with non-dilutive funding to support advancement of its proprietary clinical-stage pipeline.
Cantrixil, described as a legacy molecule in Kazia's pipeline, is a product candidate containing TRXE-002-01, a potent and selective third-generation benzopyran SMETI inhibitor, encapsulated in α-cyclodextrin. The compound has shown potential in oncology applications.
"We are pleased to enter into this agreement with Vivesto, which provides a source of non-dilutive funding that will help advance our proprietary, clinical-stage pipeline," said John Friend, M.D., Chief Executive Officer of Kazia Therapeutics.
Development Shift from Ovarian to Hematological Cancers
This sale follows a previous licensing agreement from March 2021, when Vivesto secured exclusive global development and commercialization rights for Cantrixil from Kazia. According to the announcement, Vivesto has since decided against pursuing development in ovarian cancer as originally planned under that license.
Instead, Vivesto is now exploring Cantrixil's potential in a different therapeutic area, conducting preclinical studies for the treatment of hematological cancers. This strategic pivot represents a significant change in the development trajectory for the compound.
Financial and Strategic Implications
The $1 million transaction provides Kazia with immediate capital without diluting existing shareholders. For an oncology-focused drug development company, such non-dilutive funding can be particularly valuable in supporting ongoing clinical programs.
The sale of Cantrixil's intellectual property rights appears to align with Kazia's strategy to focus resources on its core pipeline assets. By divesting a legacy molecule while retaining the financial benefit, the company can potentially streamline its development priorities.
About Cantrixil's Mechanism
Cantrixil's active component, TRXE-002-01, belongs to the benzopyran class of compounds and specifically acts as a SMETI (Small Molecule Epigenetic Targeting Inhibitor) inhibitor. The molecule is encapsulated in α-cyclodextrin, which likely enhances its delivery characteristics.
While the specific mechanisms and potential advantages of Cantrixil in hematological cancers versus ovarian cancer have not been detailed in the announcement, the compound's properties as a selective inhibitor suggest potential applications across multiple cancer types.
