Kazia Therapeutics Limited (KZIA) stock recently plunged by 1.33% to trade at $11.12. It previously closed at $11.27. However, in the after-hours trading session, the KZIA stock soared higher than 24%.
The stock movement pattern does not have any newly announced press release or expressed external factor motivating it. So why is there a surge in the after-hours trading session? For this we will have to connect the dots of the company’s previously announced news of licensing agreement as well as the type of ownership in the KZIA stock.
Recent developments in KZIA stock
Kazia Therapeutics Limited (KZIA) is a biotechnology company specifically focusing on innovative oncology. The company is based in Barangaroo, Australia. KZIA’s operational bases include working on developing therapies for numerous oncology indications. Furthermore, its lead program is known as paxalisib, which is being developed as a treatment for glioblastoma. Glioblastoma is the most aggressive and primary form of brain cancer in adults.
Licensing agreement with the ovarian-cancer research expert Oasmia
On 2nd March 2021, Kazia announced its exclusive worldwide agreement to license Cantrixil to Oasmia Pharmaceutical AB. Cantrixil is a clinical stage, uniquely innovated drug candidate that is being developed for the treatment of ovarian cancer.
The agreement constitutes of Oasmia making a transactional payment of $4 million to Kazia, double digit royalties on commercial sales and upto $42 million payment on each progress completion milestone.
Oasmia has worked over the years to harness deep expertise in the field of ovarian cancer and has worked on similar project of its own like Cantraxil which led to the development of lead product Apealea. Overall progress on the commercial production and development of Cantraxil is major forward step news since the clinical proof of the drug’s concept. This is solid clinical-stage progress on which investors can hedge their bets.
How is type of shareholder influencing stock movement?
Now let us focus on the investors and the type of shareholders who own KZIA stock.
According to ownership breakdown, the institutions hold majority of the shares in the KZIA stock. This shows that the stock management is owner-oriented. When many institutions hold a fair amount of stake in a stock, it usually suggests that the company is well-established, major possibility of inside ownership and has a certain degree of credibility.
While this could all turn to flip-side if the institutions altogether change their perspective or react to negative news about the company’s fundamental dynamics. But right now, mainly institutional and insider ownership is what is hinting towards the stock’s recent positive movement; it depicts that institutions are satisfied with the current leadership of the management and their preferences are being met.