KZIA - Biotech Stock Laboratory: Try a Small Experiment With Kazia Therapeutics
2024-07-25 06:10:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Biotechnology stock traders, listen up! Do you like to roll the dice and take your chances on promising drug developers? If so, then you’ll definitely want to add Kazia Therapeutics (NASDAQ: KZIA ) to your watch list. I can’t guarantee any safety whatsoever, but Kazia Therapeutics stock offers excitement and the possibility of substantial profits.
Or, Kazia Therapeutics might not secure full regulatory approval for its primary product, and the stock could go nowhere or just go to zero. Nearly any outcome is plausible in the wild world of biotech stocks . So, I invite you to discover Kazia Therapeutics and decide if your stomach can handle the volatility and unpredictability.
Why Kazia Therapeutics Stock Went Bananas
Just to recap, Australian biotechnology business Kazia Therapeutics develops oncology (cancer and tumor fighting) drugs. One of Kazia Therapeutics’ drug-development programs is EVT801 . This was found in preclinical research to be “active against a broad range of tumour types.”
Not to discount the importance of EVT801, but Kazia Therapeutics’ primary drug in development is paxalisib . Recently, Kazia Therapeutics completed a phase II/III study of paxalisib in the treatment of a type of brain cancer type called glioblastoma.
Kazia Therapeutics CEO John Friend proudly announced the results of the clinical trial. Paxalisib demonstrated a “3.8 month improvement in overall survival, an approximate 33% improvement” for selected glioblastoma patients when “compared to the concurrent standard of care arm.”
Furthermore, Kazia Therapeutics was well tolerated in the study. Thus, this is huge news for Kazia Therapeutics as paxalisib is the company’s flagship product.
Kazia Therapeutics stock skyrocketed from 20 cents per share to a 52-week high of $1.58. However, the stock then sank to 53 cents. By the time you read this, the share price may be much higher or lower than that.
What’s Next for Kazia Therapeutics?
I expect the Kazia Therapeutics share price to level off as the buyers and sellers start to calm down in the coming days. Going forward, investors should consider what’s next for Kazia Therapeutics and paxalisib.
Two events could be make-or-break for Kazia Therapeutics. First of all, Kazia Therapeutics expects to release the full data from the paxalisib research study “at a scientific meeting later this year.” Heaven only knows when this will actually take place, so I won’t attempt to make any predictions.
Kazia Therapeutics stated that it will request a meeting with the U.S. Food and Drug Administration to “discuss the results and determine if a potential path to accelerated approval is appropriate for paxalisib.”
Full FDA approval is the gold standard for proposed drugs in the U.S., so keep an eye out for further developments on this news story.
Kazia Therapeutics Stock: Predict Nothing and Protect Your Wealth
Some stock traders probably enjoyed quick gains after Kazia Therapeutics released its positive clinical-trial results. Yet, some ill-timed traders may have lost money. It just goes to show that biotech stocks can be highly unpredictable and risky.
Hence, I don’t recommend trying to predict with 100% confidence whether Kazia Therapeutics will get full FDA approval for paxalisib in treating glioblastoma patients.
Instead, if you appreciate the company’s promising clinical work, consider buying Kazia Therapeutics stock. At the same time, be sure to protect your wealth by only taking a very small share position.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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