The Kazia Therapeutics Ltd (ASX: KZA) share price is one of the best performers on the ASX this past month, almost doubling in value before retreating today by 12% to $1.53. Overall, the drugmaker’s share price has gained over 82% during the past month of trading.
Why the big rise in the Kazia share price
Kazia is a Sydney-based, oncology-focused biotechnology drugmaker. The company’s flagship is the paxalisib drug used for the treatment of glioblastoma, which is the most common and aggressive form of primary brain cancer. The Kazia share price has risen strongly on the back of the ongoing and promising development of this particular drug.
In August, paxalisib was granted a fast track designation (FTD) by the United States Food and Drug Administration (FDA). This designation was a significant first step for the development of the drug, as it allowed Kazia to get better access to the FDA, including opportunities for face-to-face consultations throughout paxalisib’s development.
Later that month, it was again announced that the FDA has also awarded the rare pediatric disease designation (RPDD) to paxalisib. This designation would allow the company to receive a priority grant from the US government for the treatment of intrinsic pontine glioma, a rare and highly-aggressive childhood brain cancer.
And just two days ago, Kazia released an announcement to the market confirming that the phase-2 studies of Paxalisib has returned highly consistent results against prior data. In the release, the company says that the paxalisib compares favourably to temozolomide, the existing FDA-approved standard of care drug. The results showed that the median progression-free survival (PFS) is 8.4 months (versus 5.3 months for temozolomide), and the median overall survival (OS) is 17.5 months (versus 12.7 months for temozolomide).
What about the Kazia share price in 2020?
As mentioned earlier, the Kazia share price has risen by around 82% during the past month. On a year-to-date basis, the Kazia share price has surged by almost 170%. At the current share price of $1.53, it commands a market cap of $220 million.
Kazia is dual listed, and has a listing on Nasdaq under Kazia Therapeutics Limited (NASDAQ: KZIA). That share price has risen by over 100% during the past month.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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