Kazia Therapeutics Limited announced that it has acquired global rights to a first‑in‑class SETDB1‑targeted epigenetic drug development platform from QIMR Berghofer, paying an upfront fee of approximately $1.39 million and agreeing to a tiered revenue‑sharing structure that aligns future upside with development milestones.
The platform centers on a bicyclic peptide, MSETC, designed to target the disease‑associated nuclear SETDB1 complex. By degrading SETDB1, the program aims to restore interferon signaling and enhance antigen presentation in tumors that have become resistant to checkpoint inhibitors, offering a novel mechanism to overcome immune resistance.
This acquisition expands Kazia’s three‑layered oncology strategy—PI3K/mTOR inhibition, PD‑L1 protein degradation, and epigenetic modulation—into a broader spectrum of solid tumors and positions the company to pursue preclinical IND‑enabling studies and, ultimately, first‑in‑human trials.
Kazia estimates that advancing both the SETDB1 and its existing PD‑L1 degrader programs to IND readiness will cost roughly $6 million over 18 months, with a significant portion eligible for Australian R&D tax incentives. The deal includes no clinical or regulatory milestone obligations beyond the tiered revenue‑sharing terms.
The epigenetic therapeutics market is estimated at $15–20 billion annually. QIMR Berghofer is a world‑leading translational medical research institute based in Brisbane, Australia. Kazia’s market capitalization is about $102.76 million, with a price‑to‑sales ratio of 449.5, and the company is considered ultra‑expensive; it has minimal revenue, large losses, and a high valuation relative to peers.
Dr. John Friend, CEO of Kazia, said: "SETDB1 represents a compelling emerging target in oncology. With this acquisition, we are extending our strategy to target how cancer controls its own behavior by addressing immune resistance at the chromatin level, one of the earliest layers of tumor immune regulation, alongside transcriptional reprogramming with paxalisib and targeted protein degradation with our PD‑L1 platform. Together, these programs position Kazia's pipeline to address cancer therapy across multiple layers of tumor biology."
The announcement was well received, with investors reacting positively to the expanded pipeline and strategic fit, reflecting confidence in the company’s multi‑layered approach.
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