Sydney, Australia, August 31, 2026
Kazia Therapeutics Limited, an oncology-focused biotechnology company developing therapies designed to address cancer biology, treatment resistance and immune suppression, has announced the oversubscribed closing of its registered public offering, generating approximately $40 million in upfront gross proceeds. The financing includes milestone-linked warrants that could provide the company with an additional $80 million in gross proceeds, bringing the potential total proceeds to approximately $120 million if all warrants are exercised. Kazia plans to use the net proceeds primarily to support the clinical development of paxalisib, its investigational PI3K/Akt/mTOR pathway inhibitor, across several cancer indications.
Public Offering Provides $40 Million Upfront
The completed offering was priced at $15.50 per American Depositary Share (ADS) together with accompanying Series A and Series B warrants. Kazia sold 2.58 million ADSs, with each ADS representing 500 ordinary shares, alongside warrants linked to future clinical milestones. The financing attracted participation from both new and existing institutional investors, including ADAR1 Capital Management, Columbia Threadneedle Investments, Lynx1 Capital Management, Marshall Wace, and Pointillist Family Office. The company reported approximately $40 million in gross proceeds at closing, before underwriting discounts, commissions and offering expenses. The financing structure also provides an opportunity for additional capital as Kazia reaches specified clinical milestones in its oncology programs. The Series A warrants cover up to approximately 2.24 million ADSs and carry an exercise price of $17.825 per ADS, representing a 15% premium to the offering price. Their exercise period is linked to Kazia’s planned Stage IV triple-negative breast cancer (TNBC) data readout, currently expected during the second half of 2027. The Series B warrants cover up to approximately 2.06 million ADSs at an exercise price of $19.375 per ADS, a 25% premium, with the exercise period linked to the company’s HR+/HER2- breast cancer data readout, expected during the first half of 2028.
Funding Supports Paxalisib Clinical Development
A major focus of the financing is advancing paxalisib, Kazia’s lead investigational oncology asset. Paxalisib is an oral, brain-penetrant small-molecule inhibitor of the PI3K/Akt/mTOR pathway, which plays an important role in cancer cell growth, survival and signaling. Kazia is developing the candidate across several difficult-to-treat malignancies, with ongoing and planned studies spanning triple-negative breast cancer, HR+/HER2- breast cancer and pMMR colorectal cancer. The company also has clinical programs involving brain metastases, diffuse midline gliomas and primary central nervous system lymphoma. The funding arrives as Kazia expands the clinical development strategy for paxalisib. Recent company announcements have included the expansion of its clinical trial into HR+/HER2- breast cancer, supported by preclinical findings indicating activity in combination with endocrine and CDK4/6-targeted therapies. Kazia has also reported preclinical data suggesting paxalisib may help reprogram immunotherapy-resistant microsatellite-stable/proficient mismatch repair (MSS/pMMR) colorectal cancer and enhance responses to immunotherapy. These programs are intended to investigate whether targeting PI3K/mTOR signaling can help overcome biological mechanisms associated with tumor growth and treatment resistance.
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Financing Strengthens Broader Oncology Pipeline
Beyond paxalisib, Kazia is developing additional oncology programs targeting mechanisms involved in immune evasion, treatment resistance and metastatic progression. The company’s preclinical pipeline includes NDL2, an intracellular PD-L1 protein degrader program, and MSETC, a SETDB1 inhibitor program intended to restore immune signaling in tumors that have become resistant to immunotherapy. Kazia is also developing EVT801, a small-molecule VEGFR3 inhibitor licensed from Evotec. Paxalisib has previously received several U.S. FDA development designations, including Orphan Drug Designation for glioblastoma and Fast Track Designation for glioblastoma and certain solid-tumor brain metastases. The company reported that paxalisib has been evaluated in more than 15 clinical trials and that discussions remain ongoing regarding potential pivotal development in glioblastoma.The $40 million upfront financing and potential $120 million total proceeds provide Kazia with additional resources to advance its clinical-stage oncology portfolio. Importantly, the financing itself does not establish efficacy or regulatory approval for paxalisib; future clinical studies and data readouts will determine the therapeutic potential of the company’s programs. The milestone-linked structure, however, aligns potential additional financing with upcoming clinical development milestones in breast cancer, supporting Kazia’s strategy to advance paxalisib through multiple oncology indications.
Source: Kazia Therapeutics press release
