Kazia drops on $40 mln equity offering to fund breast cancer drug
BUZZ-Kazia drops on $40 mln equity offering to fund breast cancer drug ** Kazia Therapeutics' KZIA.O shares down 5.3% at $16 premarket on Fri after equity raise to fund development of its breast cancer drug
** Australian biotech announces offering of 2.58 mln American Depositary shares (ADSs), or pre-funded warrants, at $15.50 for roughly $40 mln gross proceeds
** Offering price represents 8.3% discount to stock's last close
** Transaction includes two series of accompanying warrants to buy up to about 4.3 mln ADSs, exercisable 115% and 125% above the public offering price; co could raise another $80 mln if warrants are fully exercised
** After the bell Thurs, KZIA said its breast cancer drug, paxalisib, achieved 100% clinical benefit rate in six evaluable patients with stage IV triple-negative breast cancer (TNBC)
** Enrollment in ongoing Phase 1b study evaluating paxalisib in combination with Merck's MRK.N Keytruda and chemotherapy in advanced metastatic TNBC expected to be completed in July 2027, co said, with interim updates planned in 2026-2027
** It intends to use net offering proceeds to fund paxalisib, including ongoing/planned studies in TNBC and HR+/HER2- breast cancer and other oncology indications
** Leerink and Guggenheim joint bookrunners for the offering
** At Thurs close, KZIA's shares surged 145% YTD
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
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