Benzinga | Mar 1, 2021 05:18AM EST

Kazia Announced it Licensed Cantrixil to Oasmia Pharmacetical AB; Kazia to Receive $4M Upfront Plus Milestone Payments Up to $42M and Royalties

Kazia Therapeutics Limited (NASDAQ:KZIA) is pleased to announce that it has entered into an exclusive worldwide license agreement with Oasmia Pharmaceutical AB (STO: OASM), an innovation-focused specialty pharmaceutical company, for Cantrixil (TRX-E-002-1), a clinical-stage, first-in-class drug candidate under development for the treatment of ovarian cancer.

Key Points

Oasmia will assume worldwide exclusive rights to develop and commercialise Cantrixil for all indications, with an initial focus on ovarian cancerUnder the terms of the agreement, Oasmia will make an upfront payment ofUS$ 4 million to Kazia, with contingent milestone payments of up to US$ 42 million, and double-digit royalties on commercial salesOasmia is an innovative specialty pharmaceutical company, based in Stockholm, Sweden. Its lead product, Apealea® (paclitaxel micellar), is approved in Europe for adult patients with first relapse of platinum-sensitive epithelial ovarian cancer, primary peritoneal cancer, and fallopian tube cancer, and is in late-stage clinical development in the USOasmia expects to commence a Phase II study of Cantrixil in ovarian cancer in 2022Kazia CEO, Dr James Garner, commented, "Oasmia possesses deep expertise in the field of ovarian cancer, and also brings to Cantrixil a highly commercial focus, world-class formulation capabilities, and an extensive network of clinician relationships in Europe and the US. This transaction follows the release of very encouraging top-line data from the phase I study of Cantrixil late last year. Our strategy has been to seek a partner for Cantrixil's further development, and we are delighted to now pass the baton to the Oasmia team."

Dr Franois Martelet, CEO of Oasmia, added, "Cantrixil is an exciting addition to Oasmia's oncology pipeline and builds on our development expertise in ovarian cancer. Expanding Oasmia's portfolio of therapies and technologies is a key pillar of our transformation strategy. Acquiring rights to Cantrixil, which has established clinical proof of concept, is a major step forward in executing this strategy, and we will continue to leverage our development and partnering expertise to build our oncology pipeline."

Cantrixil (TRX-E-002-1)

Cantrixil is a proprietary formulation of the potent and selective third-generation benzopyran, TRX-E-002-1. It targets the entire spectrum of cancer cells, including chemotherapy-resistant tumour-initiating cells ('cancer stem cells') that are thought to be responsible for disease relapse.

In December 2020, Kazia announced top-line results of a Phase I open-label study (NCT02903771) conducted at sites in the US and Australia, covering both monotherapy and combination therapy in patients with persistent or recurrent ovarian, fallopian tube or primary peritoneal cancer. The Phase I study met its primary endpoints, and full data are expected to be published in a peer-reviewed scientific journal during CY2021.

Cantrixil was granted orphan designation for ovarian cancer by the US FDA in April 2015.