Kazia Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Sean Lee CFA from H.C. Wainwright maintained a Buy rating on the stock and has a $13.00 price target.
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Sean Lee CFA has given his Buy rating due to a combination of factors that highlight the potential of Kazia Therapeutics. One of the primary reasons is the company’s strategic move to seek early approval for its lead drug, paxalisib, from the FDA under the Project Frontrunner initiative. This initiative aims to expedite the approval of oncology drugs for earlier line patients. Although there is some uncertainty regarding the FDA’s decision, if Kazia can secure approval with a commitment for a post-approval study, it could significantly boost the stock.
Additionally, Kazia’s recent licensing agreement with QIMR Berghofer for a novel PD-L1 degrader program adds another potential growth avenue. This program, which targets triple-negative breast cancer, could position Kazia as a first mover in the PD-L1 degrader space, offering a promising opportunity despite its early-stage nature. The valuation of Kazia’s stock is supported by a risk-adjusted net present value analysis of future revenues from its key products, paxalisib and EVT801, alongside the company’s current cash reserves. These factors collectively underpin the Buy rating and the 12-month price target of $13 per ADS.