Kazia’s Stock Jumps 42% Following Breakthrough in Cancer Treatment

Shares of Kazia Therapeutics Limited (KZIA) surged by 42% on Wednesday after the company announced that a patient with stage IV triple-negative breast cancer has shown an initial immune-complete response to a treatment combining its lead program Paxalisib with Pembrolizumab and standard chemotherapy. This promising development suggests a complete disappearance of all cancer signs following the immunotherapy.

According to Kazia, complete responses in stage IV metastatic triple-negative breast cancer (TNBC) are exceptionally rare. This result may indicate enhanced biological activity of the treatment regimen, highlighting the need for ongoing monitoring. In a previous announcement from October, Kazia noted that the same patient experienced an 86% reduction in tumor burden after just three weeks of treatment.

The patient is currently continuing therapy and remains under active clinical observation, with further scans planned to confirm the findings of the initial examination. After approximately three months of treatment, recent imaging revealed complete metabolic resolution of all previously identified lesions, consistent with the initial immune-complete response.

Future Steps for Kazia

Kazia’s Chief Executive Officer, John Friend, described the initial complete response as an “extremely encouraging clinical finding.” The company intends to engage with the U.S. Food and Drug Administration to discuss overall survival findings from completed clinical studies and to explore the necessary steps for an application submission for Paxalisib in newly diagnosed glioblastoma.

In addition to the positive clinical news, Kazia expressed concerns regarding potential suspension or delisting of its shares from Nasdaq due to non-compliance with certain listing rules. The company plans to request a hearing before a Nasdaq panel to address these issues, aiming to stay any suspension or delisting actions until the hearing’s outcome. Kazia is also evaluating corporate and market-based options to regain compliance.

Market Reaction and Sentiment

Retail sentiment towards KZIA stock saw a significant shift on Stocktwits, moving from a ‘bearish’ outlook to ‘extremely bullish’ within 24 hours. The message volume also increased dramatically, reflecting heightened investor interest. Despite the recent surge, KZIA’s stock has faced challenges, being down by 8% this year and approximately 71% over the past twelve months.

As the company continues to monitor the patient’s progress and navigate its compliance issues, the recent clinical findings may play a crucial role in shaping its future trajectory. Investors and stakeholders are keenly awaiting further updates from Kazia regarding both the promising treatment outcomes and the company’s operational status on the stock market.