Kazia Therapeutics - Do Two A+ Deals Foreshadow THE DEAL?

Licensing deals are the life blood of small pharmaceutical companies, representing their exit from the development of a molecule, often in a staged manner, and a coalescing of the value they have added to a compound. Kazia Therapeutics has done two licensing deals in the space of a month, something unique for an Australian company. In this report, we look at those deals, assess their quality and look at other takeaways they provide.

Another Deal – Kazia Inlicences New Anti-Cancer Med From Highly Impressive Partner

That is three deals in two-months, with Kazia in-licencing EVT801, an oral, small molecule, first-in-class cancer drug candidate from Evotec SE (FRA:EVT; Market Cap (MC): €5.4b (AUD8.4b). Kazia gained exclusive global rights to the drug for €1m (AUD1.6m) upfront, €308m (AUD480m) in milestones and a tiered single-digit royalty on sales. Evotec, whose corporate strategy precludes taking drugs into the clinic, developed EVT801 with Sanofi (NASDAQ:SNY; MC:USD128.9b (AUD165.7b) meaning the provenance of the compound is impeccable. Kazia has slated EVT801 to start a phase I trial in 2HCY21. Another A+ deal by Kazia in our eyes.