Benzinga | Mar 29, 2021 06:49AM EDT

Kazia Therapeutics Stock Is Trading Higher On Paxalisib Licensing Agreement In Greater China

Kazia Therapeutics Ltd (NASDAQ: KZIA) has entered into a licensing agreement with Simcere Pharmaceutical Group Ltd to develop and commercialize Kazia's investigational new drug, paxalisib, in Greater China.

* Kazia retains rights to the development and commercialization of paxalisib in all other territories and will continue to drive forward the GBM AGILE pivotal study as planned, including in China.

* Under the terms of the agreement, Kazia will receive an upfront payment of $11 million, including $7 million in cash and a $4 million equity investment.

* Kazia will also receive milestone payments of up to $281 million for glioblastoma, with further milestones payable for indications beyond glioblastoma, as well as mid-teen percentage royalties on commercial sales.

* Paxalisib is a brain-penetrant inhibitor of the PI3K / Akt / mTOR pathway, which is disordered in the vast majority of patients with glioblastoma, a common and aggressive form of primary brain cancer.

* Kazia will hold a conference call to discuss the partnership with Simcere further at 5:00 p.m. E.T. today.

* Price Action: KZIA shares are trading 26.4% higher at $14.01 in premarket trading on the last check Monday.