Kazia Therapeutics Ltd (NASDAQ: KZIA) is having an overwhelmingly rough start to the trading session this morning, which may come as a surprise to many. The company issued what seemed to be positive data from a glioblastoma study, but the stock is down 18.51% early on. Nonetheless, there’s a good reason for the declines. Here’s what’s happening:
KZIA Stock Falls On Data
Overall, Kazia Therapeutics painted a pretty picture with their data release. I’ll explain why the picture isn’t quite as colorful as you may think in a bit. Nonetheless, here’s the data that was released, how the company released it:
The data came from an ongoing Phase II study of GDC-0084 in patients with glioblastoma. The data released came from the first nine patients of this 29 patient trial.
In the release, KZIA said that median progression-free survival came in at 8.4 months. This implies that the treatment potentially delays the progression of glioblastoma.
In the release, the comapny said that 6 of the 8 evaluable patients remained alive, so median overall survival could not yet be calculated.
From the safety standpoint, KZIA said that results were consistent with prior experience. The most common drug-related toxicities included rash, mouth ulcers, and raised blood sugar. In fact, at 75mg, raised blood sugar and mouth ulcers proved to be dose limiting toxicities.
Why This Data Is Leading To Declines
All in all, the data seems to be overwhelmingly positive. So, some investors are scratching their heads, wondering why the stock is taking a nose dive in the market this morning. Here’s what’s going on:
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