Kazia Therapeutics Secures $2 Million Private Placement to Advance Brain Cancer and Breast Cancer Drug Development
Key Insights
Kazia Therapeutics (search) raised $2 million through a private placement priced at a 5% premium to market, demonstrating strong investor confidence in the company's oncology pipeline.
The funding will support continued clinical development of paxalisib, a brain-penetrant PI3K (search)/mTOR (search) inhibitor in trials for brain cancer (search) and advanced triple-negative breast cancer (search).
The company is also advancing EVT801, a selective VEGFR3 (search) inhibitor currently in Phase 1 trials for advanced solid tumors (search).
Kazia Therapeutics (search) Limited (NASDAQ: KZIA) announced on August 1, 2025, that it has secured approximately $2 million through a private placement of equity securities with established institutional investors. The Sydney-based oncology-focused drug development company priced the securities at a 5% premium to the closing price of its American Depositary Shares on July 31, 2025, indicating strong investor confidence in the company's clinical pipeline.
The private placement is structured as a straightforward equity investment without common warrant coverage, involving the sale of ordinary shares and prefunded warrants. The transaction is expected to close on August 4, 2025, subject to customary closing conditions.
Funding to Accelerate Clinical Programs
The company plans to use the net proceeds of approximately $2 million to support the continued clinical development of its lead programs. The primary focus will be on advancing paxalisib, a brain-penetrant dual PI3K (search)/mTOR (search) inhibitor currently in clinical trials for both brain cancer (search) and advanced breast cancer, as well as EVT801, a selective VEGFR3 (search) inhibitor.
"This transaction provides Kazia with additional capital to advance our clinical-stage assets through key near-term catalysts most notably additional data from our ongoing advanced breast cancer trial," said Dr. John Friend, CEO of Kazia Therapeutics (search). "We are grateful for the continued support of our investors and look forward to delivering updates on upcoming milestones."
Pipeline Development Focus
Kazia's lead program, paxalisib, is being developed as a brain-penetrant pan-PI3K (search)/mTOR (search) inhibitor to treat multiple forms of brain cancer (search), including glioblastoma (search) and brain metastases (search). The company is currently conducting a Phase 1b clinical trial evaluating paxalisib in combination with checkpoint inhibition and chemotherapy for patients with advanced triple-negative breast cancer (search).
The company's second clinical asset, EVT801, is a selective VEGFR3 (search) inhibitor currently in a Phase 1 clinical trial for advanced solid tumors (search). Kazia is working to rapidly progress both assets through clinical development toward potential commercialization.
Regulatory and Financial Structure
The securities sold in the private placement are being offered in a transaction not involving a public offering and have not been registered under the Securities Act of 1933. Under the securities purchase agreement, Kazia has committed to file a shelf registration statement with the U.S. Securities and Exchange Commission within 60 days of closing to register the resale of ADSs representing the ordinary shares and those underlying the pre-funded warrants.