Kazia Therapeutics Limited has closed an oversubscribed public offering that generated approximately $40 million in upfront gross proceeds, providing additional funding for the clinical development of its cancer drug candidate, paxalisib.
The oncology-focused biotechnology company said the offering could generate up to approximately $120 million in total gross proceeds if all milestone-linked warrants are exercised.
The financing included 2.58 million American Depositary Shares (ADSs), along with pre-funded warrants for certain investors. Each ADS represents 500 ordinary shares of Kazia Therapeutics.
The offering was priced at $15.50 per ADS and included two sets of milestone-linked warrants. The Series A Warrants have an exercise price of $17.825 per ADS, representing a 15% premium to the offering price. These warrants are linked to the company’s planned Stage IV triple-negative breast cancer (TNBC) data readout, which is expected in the second half of 2027.
The Series B Warrants have an exercise price of $19.375 per ADS, representing a 25% premium to the offering price. These warrants are linked to clinical data from Kazia’s HR+/HER2- breast cancer program, expected in the first half of 2028.
If both warrant tranches are exercised in full, Kazia could receive approximately $80 million in additional gross proceeds beyond the $40 million raised at closing.
The public offering attracted participation from both new and existing institutional investors. Participating investors included ADAR1 Capital Management, Columbia Threadneedle Investments, Lynx1 Capital Management, Marshall Wace, and Pointillist Family Office.
Leerink Partners and Guggenheim Securities served as joint bookrunning managers for the offering. BTIG and Needham & Company acted as lead managers, while Laidlaw & Company (UK) Ltd. acted as co-manager.
Kazia said it plans to use the net proceeds primarily to support the clinical development of paxalisib. The company is currently pursuing studies of the treatment in several cancer indications, including triple-negative breast cancer, HR+/HER2- breast cancer, and mismatch repair-proficient (pMMR) colorectal cancer.
The new financing is expected to strengthen Kazia’s ability to continue its clinical programs and support ongoing research and development activities. With potential additional funding tied to future clinical milestones, the company could have access to significant capital as it advances paxalisib through upcoming studies and data readouts.
The successful completion of the oversubscribed offering also highlights continued investor interest in Kazia’s oncology pipeline and its strategy to develop therapies designed to address treatment resistance and improve anti-tumor immune responses.