The business model is about taking a phase 1 drug or preclinical drug and progressing through trials. The company does not need a pipeline past paxalisib. There will be additional indications to explore in the future. The company is proving capability. In the future other companies will offer collaborations/deals for Kazia to put to investors to for addition to the pipeline. The agile model requires inputs, these may present themselves or perhaps the board will pick a drug candidate and do a deal.
I think calling this a structured finance play is incorrect. The company adds value to a drug candidate. Being a smaller company means that it can take on projects that are not the priority to big pharma, add value to it, then sell it back to big pharma or ask investors to take it all the way to commercialisation. In finance we usually know the profit margin, but in Kazia we do not.
KZA Price at posting:
$1.01 Sentiment: Buy Disclosure: Held
