Benzinga | Apr 19, 2021 05:17AM EDT

Kazia Therapeutics Announced Worldwide Exclusive Licensing Deal & Master Services Deal With Evotec SE

Kazia Therapeutics Limited (NASDAQ:KZIA) is pleased to announce that it has entered into a worldwide exclusive licensing agreement and a master services agreement with Evotec SE (OTC:EVOTF), a leading European drug discovery and development company, for EVT801, a small-molecule, first-in-class oncology drug candidate. Kazia expects to launch a phase I clinical trial of EVT801 in CY2021. Key Points Evotec has granted Kazia an exclusive global worldwide license to develop, manufacture, and commercialise EVT801 in all territories and indications. Under the terms of the agreement, Kazia will pay an immediate upfront of 1 million (AU$ 1.6 million), contingent milestones of up to 308 million (AU$ 480 million) related to achievement of clinical, regulatory, and commercial outcomes over the lifetime of the drug, and a tiered single-digit royalty on net sales. Evotec is a leading drug discovery and development company, headquartered in Hamburg, Germany, and listed on the Frankfurt Stock Exchange. EVT801 is a small-molecule inhibitor of VEGFR3. Its primary activity is to inhibit lymphangiogenesis, the formation of new lymphatic vessels around a growing tumour. By doing so, EVT801 is expected to starve the tumour of vital nutrients and to reduce metastasis. EVT801 also has marked activity on the immune system within the tumour and may therefore enhance the activity of immuno-oncology therapies. Kazia and Evotec have also entered into a master services agreement, under which the two companies will collaborate closely on the further development of EVT801. EVT801 was originally discovered by Sanofi (NASDAQ:SNY), the largest pharmaceutical company in France and among the five largest in the world and was developed through a partnership between Sanofi and Evotec. Kazia expects to launch a phase I clinical trial in CY2021. The initial exploratory indications for EVT801 include renal cell carcinoma (kidney cancer), hepatocellular carcinoma (liver cancer), and soft tissue sarcoma. Kazia CEO, Dr James Garner, commented, "We are delighted to add this tremendously exciting new compound to the Kazia pipeline. Evotec have done first-class work in the early development of EVT801, and the preclinical data package is exceptionally strong. We intend to fast track a phase I clinical trial of the drug, which we expect to commence in CY2021." He added, "As we have built Kazia over the past five years, our strategy has been to assemble a portfolio of world-class development candidates through in-licensing. The EVT801 transaction is wholly consistent with that strategy. We have demonstrated, through the paxalisib program, our ability to add value to a development candidate, and we intend to similarly accelerate EVT801 via a rich and innovative development program." Evotec CEO, Dr Werner Lanthaler, commented, "we are very pleased to partner with Kazia for this promising asset, for which we have high hopes. Our corporate strategy does not provide for Evotec to take EVT801 through clinical trials itself, so we have sought to identify a partner who can do justice to the drug's potential. We recognise Kazia's track record and look forward to working together to make EVT801 available to patients and clinicians."