Kazia Therapeutics Limited

A N N UA L R E P O R T 2 0 2 0

2 

4 

6 

8 

2020 at a glance

Chairman’s letter

CEO’s report

Key milestones and highlights – 2019/2020

10  Pipeline review

13  GBM Agile

14  Working with the best

15  The journey to a commercial product

19  Financial report FY20

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THE PATH AHEAD IS CLEAR. KAZIA IS UNFALTERING 
IN OUR COMMITMENT TO TAKE PAXALISIB INTO AN 
INTERNATIONAL PIVOTAL STUDY FOR REGISTRATION. 
OUR SUCCESS WILL MEAN THE FIRST NEW DRUG FOR 
PATIENTS DIAGNOSED WITH GLIOBLASTOMA IN MORE 
THAN TWO DECADES.

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ANNUAL REPORT 2020

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2020 AT A GLANCE

Kazia Therapeutics is an oncology-focused biotechnology company, developing innovative  
anti-cancer drugs. We collaborate with clinicians, scientists, and researchers around the world 
to bring new hope to patients with cancer.

Paxalisib is 
currently in clinical 
trials at world-
leading centres 
in a wide range 
of different forms 
of brain cancer

Glioblastoma is 
the most common 
and the most 
aggressive form 
of primary brain 
cancer

  5

Ongoing clinical 
trials with paxalisib 

  368

Hospitals currently 
recruiting patients 
to paxalisib 
clinical trials 

  121

Patients treated 
with paxalisib  
worldwide to date  

As at 30 June 2020

As at 30 June 2020

As at 30 June 2020

 133,000

Patients diagnosed with glioblastoma 
worldwide each year
Source: GLOBOCAN 2012

 85-90%  

Of glioblastoma patients have dysregulation of 
the PI3K pathway, which is targeted by paxalisib
Source: Cancer Genome Atlas

 65%

Of patients will 
never respond to 
temozolomide, 
the only existing 
standard of care

Source: AA Pandith 
et al. (2018) Scientific 
Reports 8:6704

Since 2016, Kazia 
has built a lean, 
highly efficient 
business focused 
on clinical 
development of 
novel anti-cancer 
therapies

2,450

2017

2018

2019

2020

4,020

4,150

4,304

US$ 1.5b  

Forecast global commercial market 
opportunity for glioblastoma per annum

63

78.9%

Media mentions  
for FY2020

Patents granted for 
paxalisib worldwide

Of operating cashflows 
invested in R&D (FY20)

2

KAZIA THERAPEUTICS LIMITED

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’

Overall Survival 

Paxalisib:

 17.7months 

Temozolomide  
(existing standard 
of care):

 12.7months

Interim analysis as at 
29 February 2020

Cantrixil is 
currently 
completing a 
clinical trial in 
ovarian cancer

  25

Patients treated 
with Cantrixil  
worldwide to date  

Progression-Free 
Survival 

Cantrixil:

 5.5months 
 3.4months

Chemotherapy:

As at 30 June 2020

Interim analysis as at 
30 September 2019

Number of new therapies 
approved by FDA, 2010-2020 

Number of clinical trials 
commenced, 2019 

5-year survival of  
patients 

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Lung cancer:

 17 
 0

Glioblastoma:

Breast cancer:

 135 
 35

Glioblastoma:

Breast cancer:

 90 
 3

Glioblastoma:

Source: US Food and  
Drug Administration

Source: clinicaltrials.gov

Source: US National  
Cancer Institute

Enterprise value (market capitalisation, 
less cash)  (AU$) 

$35.6m

Indicative Analyst Valuation (AU$) 

$12.7m 

$5.7m 

$14.9m 

$3.8m 

13 May 2018 

19 Sept 2018 

1 Apr 2019 

31 Mar 2019  

23 Jun 2019 

$103M 

$103M 

 $115M 

$137M

$137M 

30 June 
2016 

30 June 
2017  

30 June 
2018 

30 June 
2019 

30 June 
2020

Source: Edison Research

ANNUAL REPORT 2020

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CHAIRMAN’S LETTER

IT IS FAIR TO SAY THAT 
THESE RESULTS HAVE 
SUBSTANTIALLY EXCEEDED 
EXPECTATIONS, AND  
THEY DEMONSTRATE 
THE RICH AND GROWING 
POTENTIAL OF THIS  
VERY PROMISING DRUG

4

KAZIA THERAPEUTICS LIMITED

Dear Shareholder,

Our company concludes the 2020 
financial year in a very strong 
position, despite the ongoing 
COVID-19 pandemic. We are 
reporting very encouraging data, 
we are well-funded, and we have 
a clear path forward for our lead 
asset, paxalisib. I am very pleased 
to highlight here some of Kazia’s 
specific achievements during the past 
twelve months.

FINANCIAL PERFORMANCE

Our cash balance at 30 June 
2020 was $8.8 million, versus 
$5.4 million at 30 June 2019. Our 
total assets were $23 million, as 
against $21.2 million at 30 June 
2019. We committed net outlays of 
$8.8 million to advance the company, 
of which 79% was devoted directly 
to investment in R&D. 

Kazia remains, in your Board’s view, 
an exceptionally efficient drug 
development business. With the 
resources at hand, the company 
has completed recruitment of two 
international clinical trials, has 
continued to support four ongoing 
investigator-initiated studies, has 
presented data at four international 
conferences, and has executed an 
extensive program of regulatory and 
manufacturing work to support the 
critical transition of paxalisib into a 
pivotal study for registration.

FUNDING

We have completed two financing 
rounds during the financial year, 
in October 2019 and April 2020. 
In aggregate, these efforts have 
raised some $13 million in new 
capital for the company and have 
brought significant and high-quality 
institutional support to the share 
register. Both raises were executed 
at extremely competitive terms: 
a 17% discount to 5-day VWAP in 
October, and a 3% discount in April, 
notwithstanding the very challenging 
environment in capital markets 
associated with COVID-19. 

Aside from the vital funding that 
these transactions provided, we have 
been pleased to welcome a number 
of new institutional investors to the 

Kazia register. It has been noted 
previously that few listed companies 
can achieve their full potential 
without the support of professional 
investors, and each of the three 
financing rounds that Kazia has 
completed have been anchored by 
institutional participants. Most of the 
participants in earlier rounds have 
continued to support the company in 
its most recent raise, reflecting their 
robust and ongoing commitment to 
the company’s success.

In parallel, the company offered 
existing shareholders an opportunity 
to strengthen their position on the 
same terms as institutional investors, 
via a Share Purchase Plan (SPP) in 
May 2020. This was extremely well 
supported and raised approximately 
$1.8 million. The proceeds of our 
last SPP, in 2018, allowed us to put 
in place several high-quality clinical 
research collaborations for paxalisib, 
and we expect to likewise apply the 
funds from this SPP directly to the 
task of bringing hope to patients with 
brain cancer.

PROGRESS

I have said before that the lifeblood 
of any life sciences company is clinical 
data. On that score, I will allow the 
numbers to speak for themselves. 
Paxalisib has reported a progression-
free survival of 8.4 months (versus 
5.3 months for temozolomide, the 
existing standard of care), and an 
overall survival of 17.7 months (versus 
12.7 months for temozolomide). It 
is fair to say that these results have 
substantially exceeded expectations, 
and they demonstrate the rich 
and growing potential of this very 
promising drug. 

OUTLOOK

Given these data, our highest priority 
is to move paxalisib swiftly into a 
pivotal study for registration. We are 
delighted to have been accepted onto 
the GBM AGILE study, a ground-
breaking international clinical trial 
that has been established by many of 
the leading experts in glioblastoma 
to expedite the delivery of new drugs 
for this very challenging disease. 
As previously flagged, we expect 
commencement of GBM AGILE in 

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the second half of calendar 2020, 
although of course we continue 
to monitor the rapidly changing 
operational environment.

The GBM AGILE study places 
paxalisib on a direct path to 
commercialisation. If the drug’s 
performance matches our hopes and 
expectations, it stands to become 
the first drug approved for this group 
of patients in over twenty years, and 
the first signal of hope that even this 
most challenging of cancers can be 
beaten. 

I have said previously that we 
consider the best path forward for 
Cantrixil to lie in a partnership with a 
larger company, one who shares our 
belief in the asset’s potential, and 
who brings to the partnership the 
wherewithal and technical resources 
to fully realise that potential. Our 
efforts on this front remain ongoing, 
and will be driven by final data from 
the phase I study, which we expect to 
have on hand in Q4 CY2020.

I would like to thank my fellow 
directors and our management team, 
led by our CEO, James Garner, for 
their dedicated and unflagging work 
in support of the company. In the 
four years or so since Kazia began 
to take form, we have achieved a 
great deal, but our most important 
work lies ahead. We are grateful to 
our shareholders whose support has 
made these achievements possible, 
and I look forward to reporting our 
further progress in the year ahead. 

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Iain Ross 
Chairman of the Board

ANNUAL REPORT 2020

5

 
 
 
 
 
 
 
 
 
 
 
CEO’S REPORT

PUT SIMPLY, IT APPEARS 
THAT PAXALISIB MAY BE 
ABLE TO EXTEND THE 
LIFE OF PATIENTS WITH 
GLIOBLASTOMA

6

KAZIA THERAPEUTICS LIMITED

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Dear Fellow Shareholder,

We have made great strides over 
the past twelve months, and it is a 
testament to the hard work of many 
people that we now stand poised 
shortly to commence a pivotal 
study for registration with paxalisib 
(formerly GDC-0084). Kazia has 
come a very long way in the last four 
years or so.

So many important things happened 
in FY2020 that it is difficult to single 
out individual events, but I wanted to 
share several personal highlights. 

First, in November 2019, we 
presented interim data from the 
ongoing phase II study of paxalisib 
at the Society for Neuro-Oncology 
(SNO) annual meeting. This data 
showed a median progression-free 
survival (PFS) of 8.4 months. The 
benchmark for this patient group, 
which is achieved by temozolomide, 
the existing standard of care, is 
5.3 months, so this was clearly a 
tremendously encouraging result. 
For the first time, we had solid 
evidence that paxalisib was effective, 
using a measure that would likely be 
acceptable for FDA registration.

However, we were able to move 
beyond this in May 2020 with 
data presented at the prestigious 
American Society of Clinical 
Oncology (ASCO) annual meeting. 
This showed a median overall 
survival (OS) of 17.7 months, versus 
an historical benchmark of 12.7 
months for temozolomide. Put 
simply, it appears that paxalisib 
may be able to extend the life of 
patients with glioblastoma. No drug 
has convincingly demonstrated this 
ability in the last twenty years. If 
it continues to be borne out in the 
larger study we’re about to enter into, 
this result will transform the practice 
of neuro-oncology. 

Finally, the Cantrixil program in 
ovarian cancer has continued 
to deliver. Presentations at the 
European Society for Medical 
Oncology in September 2019, and to 
the American Association for Cancer 
Research in June 2020, both showed 
promising signs of activity for the 
drug. We have said previously that we 
feel the potential of Cantrixil would 
be best realised with the support of 
a larger company, and the emerging 
data will no doubt help to fuel those 
discussions as we bring the phase I 
study to completion.

Meanwhile, the path ahead for 
Kazia is clear. We are unfaltering in 
our commitment to take paxalisib 
into an international pivotal study 
for registration. Our success will 
mean the first new drug for patients 
diagnosed with glioblastoma in more 
than two decades. Our data readouts 
over the past twelve months, coupled 
with the work already underway 
for GBM AGILE, mean that this is 
no longer merely an aspiration, 
but rather a concrete, realistic, and 
comprehensive plan. We know what 
we need to do, and we have the 
resources, the expertise, and the 
determination to see it through.

I am thankful to my colleagues on the 
Board and in the Management Team 
for their indefatigable dedication 
and unfailing professionalism, and 
we remain extremely grateful for the 
ongoing support of our investors, 
whose strong commitment to 
the company is reflected in these 
important achievements. 

Dr James Garner 
Chief Executive Officer

Behind each of these headline 
data points is a mass of detailed 
and painstaking work by the Kazia 
team, which collectively supports 
paxalisib’s journey through the 
complex regulatory pathway to a 
marketed product. One important 
landmark on this journey was the 
confirmation in late 2019 that 
‘paxalisib’ was approved by the WHO 
as the international non-proprietary 
name for the drug, which previously 
carried the code number GDC-0084. 
The United States Adopted Name 
(USAN) Council approved the name 
‘paxalisib’ for the US in May 2020, 
and so our drug now has its formal 
name for all future development. 

Given the very positive data, our 
intent had been to launch a Kazia-
sponsored phase III study in CY2020. 
However, our invitation to join the 
international GBM AGILE has led 
to a change in strategy. In our view, 
GBM AGILE offers a faster, more 
cost-effective path to market, in a 
clinical trial of exceptional quality, 
and with the engagement and 
support of most of the top clinicians 
in this field, as well as the enthusiastic 
endorsement of the US Food and 
Drug Administration (FDA). The 
cutting-edge adaptive approach is 
only one of the features that attracts 
us to the study, and paxalisib will be 
an ideal fit with both its objectives 
and its design.

We expect GBM AGILE to begin 
recruiting patients in the second half 
of CY2020. When it does, it will be 
the seventh clinical trial of paxalisib. 
This reflects the fact that our drug 
has, over the past several years, 
moved from being a glioblastoma 
drug to something much larger, a 
brain cancer drug. We have clinical 
studies ongoing in childhood brain 
cancer, and in metastatic brain 
cancer, which is cancer that has 
spread to the brain from elsewhere in 
the body, and each of these studies 
presents the opportunity to expand 
the use of paxalisib and to help a 
greater number of patients with this 
very challenging disease.

ANNUAL REPORT 2020

7

 
 
 
 
 
 
 
 
 
 
KEY MILESTONES AND HIGHLIGHTS – 2019/2020 

• New CEO 
recruited from 
Sanofi to drive 
establishment 
of Kazia 
Therapeutics.

• Paxalisib 
 (GDC-0084) 
licensed from 
Genentech, Inc 

2016 

• New Chairman 
installed to 
accelerate 
corporate 
transformation.

• FDA consultation 
regarding future 
development path 
for paxalisib

• Launch of Kazia 
Therapeutics 
branding, 
replacing legacy 
corporate identify.

2017 

• FDA grants 
Orphan Drug 
Designation 
to paxalisib.

• Commencement 
of recruitment 
to phase II study 
of paxalisib in 
glioblastoma.

• Partnership with 
St Jude Children’s 
Research Hospital 
to explore 
paxalisib in DIPG.

• Funding round 
of A$ 4.3 million.

• Partnership 
with Dana Farber 
Cancer Institute to 
explore paxalisib 
in breast cancer 
brain metastases.

2018

August 2019

Kazia’s phase I 
study of Cantrixil 
in ovarian cancer 
completes 
recruitment.

September 2019

October 2019

Kazia raises  
AU$ 4 million 
from institutional 
investors in an 
equity placement.

St Jude Children’s 
Research 
Hospital declares 
a maximum 
tolerated dose 
in its ongoing 
phase I study of 
paxalisib in DIPG, 
supporting future 
development for 
paediatric use.

November 2019

Interim data from 
the paxalisib 
phase II study 
in glioblastoma 
shows a 
progression-free 
survival of 8.4 
months, compared 
to 5.3 months 
for the existing 
standard of care.

December 2019

Paxalisib is 
accepted onto 
the international 
GBM AGILE 
pivotal study. This 
is expected to 
provide definitive 
data for FDA 
approval, with 
recruitment 
to begin in 
2H CY2020.

• Top-line safety 
data from phase II 
study of paxalisib 
in glioblastoma.

• Partnership 
with Alliance for 
Clinical Trials 
in Oncology to 
explore paxalisib in 
brain metastases.

2019 

July 2019 (FY20)  

Kazia collaborates 
with Memorial 
Sloan Kettering 
Cancer Center in 
New York on a 
phase I study to 
explore paxalisib 
in combination 
with radiotherapy 
for metastatic 
brain cancer.

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KAZIA THERAPEUTICS LIMITED

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May 2020

Kazia commences 
manufacture of 
investigational 
product for GBM 
AGILE.

June 2020

Interim data from 
the paxalisib 
phase II study 
in glioblastoma 
revises the 
progression-
free survival 
to 8.5 months 
(8.4 months 
previously), once 
the entire patient 
group is included.

February 2020

Kazia’s phase II 
study of paxalisib 
in glioblastoma 
completes 
recruitment.

May 2020

Interim data from 
the paxalisib 
phase II study in 
GBM shows an 
overall survival 
of 17.7 months, 
compared to 
12.7 months 
for the existing 
standard of care.

April 2020

Kazia raises AU$ 
9.0 million from 
institutional 
investors in an 
oversubscribed 
equity placement 
with an 
accompanying 
share purchase 
plan for existing 
shareholders.

January 2020

World Health 
Organisation 
confirms 
‘paxalisib’ as the 
international  
non-proprietary 
name (INN) for 
the drug formerly 
known as  
GDC-0084.

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ANNUAL REPORT 2020

9

 
 
 
 
 
 
 
 
 
 
PIPELINE REVIEW
Moving Towards Registration

The transition to a registrational study is a quantum leap in the development of a new drug. 
No longer are we exploring the potential of our drug. Rather, we are single-mindedly focused on 
making it available to patients and clinicians.

PAXALISIB (GDC-0084)

In last year’s Annual Report, we celebrated the return of paxalisib to the clinic, with five ongoing clinical studies underway 
in different forms of brain cancer. Just one year later, we are already rich with promising data from the first of these 
studies, our phase II study in glioblastoma. Meanwhile, the four investigator-initiated studies have been making excellent 
progress, and we expect to see initial data from several of them in calendar 2020.

Registration

Indication

Phase

Sponsor

Status

NCT03522298

Glioblastoma

NCT03994796

Brain metastases

NCT03765983 

Breast cancer brain 
metastases (with Herceptin)

NCT03696355

DIPG

NCT04192981

Brain metastases  
(with radiotherapy)

II

II

II

I

I

Kazia Therapeutics

Fully recruited

Alliance for Clinical  
Trials  in Oncology

Recruiting

Dana-Farber Cancer 
Institute

Recruiting

St Jude Children’s 
Research Hospital

Fully recruited

Memorial Sloan 
Kettering Cancer Center

Recruiting

NCT03970447  
(GBM AGILE)

Glioblastoma

II / III

Global Coalition for 
Adaptive Research

Set-up

10 KAZIA THERAPEUTICS LIMITED

Our phase II study in glioblastoma was designed to 
transition paxalisib from the very advanced recurrent 
patients examined in the original phase I study to the 
newly-diagnosed patients who we see as the preferred 
target population for the drug. We enrolled the first 
patient in September 2018 and recruited our thirtieth 
and final patient in February 2020. 

Preliminary efficacy data from this study was released 
in November 2019 at the Society for Neuro-Oncology 
(SNO) Annual Meeting. It showed a progression-free 
survival (PFS) for patients treated with paxalisib of 
8.4 months. The existing standard of care treatment, 
temozolomide, is associated with a PFS of 5.3 months. 
While the comparison between studies is always complex 
and imperfect, the magnitude of difference points very 
strongly towards a meaningful treatment advantage 
with paxalisib. In short, this was our first concrete 
evidence that paxalisib works, and as such it has ignited 
huge interest in the drug from clinicians, investors, and 
potential partners.

Progression-Free Survival (PFS)

Paxalisib

8.4 months

Temozolomide

5.3 months

PFS is an important measure of a drug’s efficacy. In 
many cases, it can serve as an ‘approvable endpoint’, 
providing sufficient evidence for FDA to grant a marketing 
authorisation. In other cases, PFS is strongly predictive of 
success in other metrics. 

Nevertheless, the gold standard for any new drug is 
the ability to extend life, or overall survival (OS) in the 
language of drug development. In May 2020, at the 
prestigious Annual Meeting of the American Society for 
Clinical Oncology (ASCO), we released initial data from 
the study which showed an OS of 17.7 months, versus 12.7 
months for temozolomide. This is a dramatic difference. 

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11

 
 
 
 
 
 
 
 
 
 
PIPELINE REVIEW – MOVING TOWARDS REGISTRATION (continued)

Should it be replicated in a larger study, it would certainly 
provide a basis for FDA approval. Very few drugs are 
able to prolong the lives of glioblastoma patients, and so 
paxalisib has staked its claim at the forefront of the global 
drug development effort in this very challenging disease.

Overall Survival (OS)

Paxalisib

17.7 months

Temozolomide

12.7 months

The study remains ongoing, and further data will emerge 
during the second half of 2020. However, the key 
conclusions are already clear. Paxalisib is an efficacious 
drug, and on that basis deserves to move forward into a 
pivotal study for registration.

On the basis of these emerging data, we were given the 
opportunity to include paxalisib in a ground-breaking 
international clinical study named GBM AGILE. This is 
a new kind of approach to clinical development that is 
sometimes called a ‘platform study’ or ‘master protocol 
study’. It provides a standard approach to testing multiple 
drugs for a disease, comparing them against a shared 
control arm. There are many advantages to this approach, 
including substantial savings in cost and time. More 
importantly, the study is strongly supported by FDA, and 
provides a very rigorous basis on which to demonstrate 
the efficacy of paxalisib.

We are currently working through the complex set-up 
requirements for GBM AGILE, and expect to begin 
recruitment in the second half of CY2020. 

12

KAZIA THERAPEUTICS LIMITED

Of the four investigator-initiated studies, the study at St 
Jude Children’s Research Hospital in DIPG is perhaps the 
most advanced, and we expect initial data in the second 
half of CY2020. DIPG is a devastating childhood brain 
cancer, with an average life expectancy from diagnosis 
of around 9-10 months. No drug treatment has shown 
convincing evidence of efficacy, and the standard of care 
remains palliative radiotherapy. To date, more than two 
dozen children with the disease have received paxalisib, 
and we look forward to seeing an initial read-out from this 
important study.

The remaining three investigator-initiated studies are 
progressing well. In the phase II breast cancer brain 
metastases study at Dana-Farber Cancer Institute, initial 
data is also anticipated during CY2020. The phase II study 
by the Alliance for Clinical Trials in Oncology, in which 
paxalisib is being tested alongside Lilly’s abemaciclib and 
Roche’s entrectinib, is recruiting well. The most recent 
study, a phase I trial examining paxalisib in combination 
with radiotherapy for brain metastases at Memorial Sloan 
Kettering Cancer Center in New York is also well underway. 
In June 2020, Dr Jonathan Yang, the principal investigator 
on the study, reported some very early data from the first 
patient in the study, which showed a promising response to 
treatment.

These many clinical trials are only the leading edge of a 
complex and substantial body of work to move paxalisib 
towards a marketing approval, and extensive activity goes 
on behind the scenes in manufacturing, in regulatory 
affairs, and in the laboratory. One visible result of this was 
confirmation in December 2019 that the World Health 
Organisation had approved paxalisib as the formal 
international non-proprietary name (INN) of the drug 
formally known as GDC-0084. In May 2020, this was 
endorsed by the United States Adopted Name (USAN) 
Council. As in all aspects of drug development, the naming 
of new medicines is a technical and highly regulated 
process, and it represents a gratifying coming of age for 
paxalisib.

CANTRIXIL

The ongoing phase I study of Cantrixil in ovarian cancer 
completed recruitment in August 2019, and the last 
follow-up visit by the last patient occurred in April 2020. 
Interim data was presented at the European Society for 
Medical Oncology (ESMO) conference in September 2019. 
It showed several patients responding well to Cantrixil, 
and suggested a PFS of 5.3 months, which compares 
favourably to the figure of 3.4 months which is typical for 
patients as advanced as those in the study. Further data 
was presented at the American Association of Cancer 
Research (AACR) annual meeting in June 2020. It reported 
one complete response (CR) and two partial responses 
(PR) out of sixteen evaluable patients, making an overall 
response rate (ORR) of 19%. Final data is expected to be 
available in the second half of CY2020.

GBM AGILE 
Paxalisib’s path to market

The ground-breaking GBM AGILE clinical 
trial is expected to serve as the pivotal 
study for paxalisib, providing the core 
clinical data to support its approval 
as a commercial pharmaceutical product.

The randomised clinical trial was purportedly invented 
by James Lind, an eighteenth-century Scottish doctor 
who worked with the British Royal Navy. Observing high 
mortality from scurvy among seamen, he hypothesised 
that citrus fruit may improve outcomes. He assigned one 
group of scorbutic sailors to receive oranges and lemons, 
while the other received seawater. After six days, they ran 
out of fruit, but it was already clear that the treated sailors 
were very much improved.

Our approach to demonstrating the efficacy of a new 
medicine has not changed very much since Lind’s time. 
Drugs are still compared individually to control groups. 
Hypotheses are set down at the beginning of the trial 
and can only be proven or disproven, but not modified 
or refined. And the number of patients in a trial remains 
largely a matter of educated guesswork. In some cases, 
we end up with too few, and fail to detect the benefit of a 
drug. More often, we recruit too many, which is a waste of 
resources.

In consequence, the average cost of developing a new 
drug is estimated to exceed US$ 1 billion, and the process 
typically takes 12-15 years. This delays the introduction 
of new medicines and necessitates high prices for 
those that are successful. In challenging diseases such 
as glioblastoma, it has indirectly reduced investment 
such that no new drugs have been approved for newly-
diagnosed patients since the last century.

GBM AGILE lies at the cutting edge of new thinking about 
clinical trials. It has been established independently of 
any individual pharmaceutical company by some of the 
leading experts in the field. The study provides a long-
term platform into which potential new treatments can 
be placed for a period of time to investigate their use in 
glioblastoma. Several drugs may run concurrently, and all 
are compared against a common control group, saving 
substantial time and cost. Moreover, GBM AGILE is an 
adaptive study, in which innovative Bayesian statistical 
techniques are used to adjust the number of patients 
dynamically so as to reach an answer for each drug as 
efficiently as possible.

GBM AGILE is sponsored by the Global Coalition for 
Adaptive Research (GCAR), a US-based not-for-profit 
corporation. The global lead investigator is Professor 
Timothy Cloughesy, a world-leading neuro-oncologist 
based at UCLA Medical School, who has substantial 
clinical trial experience with paxalisib. 

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GCAR and Kazia share a profound vision to bring new 
therapies forward for patients with glioblastoma. GBM 
AGILE is a bold and exciting attempt to reimagine the drug 
development process. The development of paxalisib has 
been innovative in many ways, and participation in GBM 
AGILE is a fitting final step in the drug’s journey to become 
a marketed product. 

24

Current Number of Trial Sites

1

Current Participating Therapy

Planned Geographic Reach: 

US, Canada, Europe, China

For More Information

Web: https://www.gcaresearch.org/

Twitter: @GCAResearch

Instagram: @GCAResearch

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Timothy Cloughesy

ANNUAL REPORT 2020

13

 
 
 
 
 
 
 
 
 
 
WORKING WITH THE BEST

Kazia is privileged to work with cancer researchers around the globe who share our passion for 
good science and our commitment to patients.

Dr Dun has conducted 
extensive laboratory 
research on Kazia’s 
paxalisib, exploring its 
potential use as a  
therapy for DIPG.

This important clinical trial 
will provide valuable insights 
into the complex interplay 
of tumour biology, drug 
treatment, and radiotherapy, 
and may point to additional 
opportunities for paxalisib to 
benefit patients with  
brain cancer.

Dr Matt Dun

Dr T. Jonathan Yang

Dr Matt Dun is a Senior Lecturer at the University 
of Newcastle, Australia. After an early career in the 
Royal Australian Navy, he completed his PhD in 2012 
and began to develop his interests in researching cancer 
through the new field of proteomics. In contrast to the 
more established science of cancer genetics, proteomics 
tries to understand the genesis and growth of a tumour by 
studying the vast array of proteins that are generated.

Dr Dun founded the Cancer Signalling Research Group at 
the University of Newcastle, with an initial focus on blood 
cancers. In 2018, he received the devastating news that 
his daughter, Josie, had been diagnosed with DIPG, a rare 
childhood brain cancer. Struck by the paucity of knowledge 
and research in the disease, he collaborated with many of 
the global leaders in childhood brain cancer to develop 
new theories about how it may be treated. His work has led 
to the first, high-resolution, quantitative proteomic analysis 
of the disease.

As a tireless advocate for research into this disease, 
Dr Dun has been recognised by more than 20 national 
and international awards. He is an Emerging Leadership 
Fellow at the National Health and Medical Research 
Council (NHMRC) and was named the Outstanding 
Cancer Research Fellow at the NSW’s Premier Awards 
for Outstanding Cancer Research in 2019, and a Young 
Tall Poppy Science Award winner in 2020. Also in 2020, 
he was invited to join the ‘Preclinical Working Group’ of 
the Pacific Neuro Oncology Consortium (PNOC) known 
as ‘DMG-ACT’. 

To support his research, Dr Dun founded RUNDIPG, a 
charity focused on supporting cutting-edge research into 
DIPG. As a world-leading researcher, and as a patient 
advocate, he has been extensively profiled in national print 
and television media and has attracted many hundreds of 
thousands of dollars to DIPG research.

Dr Dun has conducted extensive laboratory research on 
Kazia’s paxalisib, exploring its potential use as a therapy 
for DIPG. This work has already shown paxalisib to be 
broadly active against DIPG cell lines, and has proceeded 
to identify potential combinations of paxalisib with other 
therapies that may lead to enhanced efficacy in patients. 

14

KAZIA THERAPEUTICS LIMITED

Dr T. Jonathan Yang is Director of Metastatic 
Disease in the Department of Radiation Oncology at 
Memorial Sloan Kettering Cancer Center in New York. 
He completed his PhD at Vrije Universiteit Amsterdam 
in the Netherlands and his medical training at Yale 
University, before undertaking specialist training. 
This critical discipline of radiation oncology focuses 
on using radiotherapy to treat cancer, and Dr Yang is 
highly experienced in cutting-edge techniques such 
as stereotactic radiotherapy.

Dr Yang’s primary interest is in tumours of the central 
nervous system, including both primary brain tumours 
(such as glioblastoma), and metastatic brain tumours, as 
well as leptomeningeal carcinomatosis. He has been a 
pioneer in the new technology of proton beam therapy and 
works closely with the New York Proton Center that was 
established in 2019 as a collaboration between Memorial 
Sloan Kettering Cancer Center, Mount Sinai Hospital, 
and the Montefiore Health System. Proton beam therapy 
is a highly targeted form of radiation therapy that aims 
to selectively destroy tumour with limited damage to 
surrounding tissue. 

In addition to his clinical practice, he is a prolific 
clinical researcher in brain cancer, and has particularly 
investigated how novel targeted pharmacological 
therapies can augment and support radiotherapy. One 
of his areas of research considers how radiotherapy can 
be used not just to prolong survival but also to improve 
quality of life, especially by minimising side effects. He has 
more than ninety publications and posters in the field of 
radiation oncology. 

Dr Yang’s work has previously shown that changes in 
the PI3K pathway can be associated with resistance to 
radiotherapy in brain tumours. His research has led him to 
examine Kazia’s paxalisib as a potential way to augment 
the effects of radiotherapy, and to avoid the problem of 
resistance. In 2019, he launched a phase I clinical trial to 
examine paxalisib in combination with radiotherapy in 
brain metastases (NCT04192981). This important clinical 
trial will provide valuable insights into the complex 
interplay of tumour biology, drug treatment, and 
radiotherapy, and may point to additional opportunities 
for paxalisib to benefit patients with brain cancer.

THE JOURNEY TO A COMMERCIAL PRODUCT

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With paxalisib poised to enter a pivotal study, our journey to a commercial product 
begins its final stage

REDUCING RISK

A new cancer drug typically spends up to fifteen years in research and development before it is approved by regulatory 
agencies for widespread use by patients. By far the majority of new drugs fail somewhere along the journey. Only about 
1 in 10 drugs that enter phase I human trials will ever reach market.

Likelihood of Success for a Drug in Development

Phase I 

10% 

chance  
of success

Phase II 

Phase III 

Approval  

15% 

chance  
of success

50% 

chance  
of success

85% 

chance  
of success

Kazia’s paxalisib is about to enter the final step in this process, phase III human trials, and statistically this implies 
approximately a 50% likelihood of it succeeding. However, the fact that the PI3K mechanism is very well-validated, and 
the fact that paxalisib is targeting an orphan indication, both considerably enhance its chances of success. On balance, 
paxalisib is considerably more likely at this stage to reach market than not.

Source: BIO

ANNUAL REPORT 2020

15

  
 
 
 
 
 
 
 
 
 
 
THE JOURNEY TO A COMMERCIAL PRODUCT (continued)

COMMERCIAL OPPORTUNITY

Glioblastoma is generally estimated to represent a 
US$1.5 billion per annum global market. Temozolomide, 
the existing standard of care, achieved peak sales of 
slightly more than US$ 1 billion before it lost patent 
protection, so this gives confidence that the estimate is 
broadly correct.

For any new drug, the largest geographic market is 
typically in the United States, and for this reason Kazia has 
invested considerable effort during the development of 
paxalisib in running clinical trials in the United States and in 
optimising the regulatory package for FDA.

Global Market for New Oncology Drugs, 2023

Pricing

In the United States, the median cost of a newly 
approved cancer drug in 2018 was

US$ 148,000 

per year of treatment

Source: IQVIA Institute for Human Data Science

UNITED STATES 

EUROPE 

JAPAN 

$100 billion 
13% growth rate

$42 billion 
10% growth rate

$14 billion 
7% growth rate

REST OF  
THE WORLD
$32 billion 
15% growth rate

EMERGING  
MARKETS 
$28 billion 
16% growth rate

Source: IQVIA Institute for Human Data Science

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KAZIA THERAPEUTICS LIMITED

 
 
 
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PRODUCT APPROVAL

MARKETING

Once paxalisib completes its participation in GBM AGILE, 
it will need to undergo a detailed review by regulatory 
agencies in each country for which it will be marketed. 
The end result of this review is usually referred to as either 
a marketing authorisation or a product approval. Only 
after approval can the drug be marketed to clinicians and 
prescribed to patients, and only at this point does the 
company begin to make sales revenue.

Paxalisib has been chosen by the World Health 
Organisation as the international non-proprietary name 
(INN) for the drug originally designated GDC-0084. 
However, this will not be the commercial brand name. 
When paxalisib is launched to the market, it will have a 
trademarked brand, which also requires approval by the 
regulatory agency. This will be finalised at the time of our 
NDA submission.

Examples of National Regulatory Agencies

Examples of Commercial Brands and 
Corresponding INNs

United States

Australia

European Union

China

Japan

FDA

TGA

EMA

NMPA

PMDA

The complex package of documentation that is submitted 
to a regulatory agency is usually referred to as an NDA 
(New Drug Application). When paper submissions were 
the norm, an NDA would typically require a minivan 
for transport to the agency. These days, submission is 
performed electronically.

Even drugs with successful phase III clinical trials are not 
guaranteed approval. Regulatory agencies examine the 
total body of data, including areas such as manufacturing. 
The chances of a drug with positive phase III data securing 
product approval are around 90%. 

For cancer drugs, the quality of the human trial data is 
paramount. The gold standard for any new cancer drug 
is to show an ability to extend life (overall survival). Sadly, 
very few cancer drugs at present are curative. Increasingly, 
progression-free survival is sometimes used as a 
surrogate endpoint. Endpoints such as tumour reduction 
or changes in blood tests are very rarely approvable. For 
paxalisib, the endpoint of the GBM AGILE study will be 
overall survival, and so the data should be very robust for 
approval purposes.

Review of an NDA usually takes about one year. However, 
in the US, for drugs which target a disease of high unmet 
need, FDA will sometimes grant Priority Review status, 
which means that the review will be completed within 
six months. Kazia expects paxalisib to be eligible for 
Priority Review.

Panadol®

Nexium®

Lipitor®

Adalat®

Januvia®

paracetamol

esomeprazole

atorvastatin

nifedipine

sitagliptin

Marketing a pharmaceutical product is complex and 
highly regulated. Any claim made regarding the product 
must be supported by concrete scientific data and must 
be within the scope of the product approval granted by 
the regulatory agency. The primary customers are expert 
clinicians, so sales personnel need a deep technical 
understanding of the field.

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Marketing does not begin only after approval. During 
the pivotal study, companies start working closely with 
senior clinicians, sometimes referred to as key opinion 
leaders (KOLs), to understand exactly how the drug will be 
positioned in the market. 

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18 KAZIA THERAPEUTICS LIMITED

FINANCIAL REPORT FY20

19

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSThe directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 
‘consolidated entity’) consisting of Kazia Therapeutics Limited (referred to hereafter as the ‘company’ or ‘parent entity’) and the 
entities it controlled at the end of, or during, the year ended 30 June 2020.

DIRECTORS

The following persons were Directors of Kazia Therapeutics Limited (ABN 37 063 259 754) during the whole of the financial year 
and up to the date of this report, unless otherwise stated:

Iain Ross

Bryce Carmine

Steven Coffey

James Garner

PRINCIPAL ACTIVITIES

During the financial year the principal continuing activity of the consolidated entity consisted of pharmaceutical research and 
development.

DIVIDENDS

There were no dividends paid, recommended or declared during the current or previous financial year.

REVIEW OF OPERATIONS

The loss for the consolidated entity after providing for income tax amounted to $12,467,466 (30 June 2019: $10,270,264).

The attached financial statements detail the performance and financial position of the consolidated entity for the year ended 
30 June 2020.

Cash resources

At 30 June 2020, the consolidated entity had total funds, comprising cash at bank and on hand of $1,264,044 and short term 
deposits of $7,500,000. Total current assets at year-end stand at $10,653,601 including $1,017,278 of R&D tax rebate receivable.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered this to be appropriate. 
Refer to ‘Going concern’ in note 2 to the financial statements for further details.

Impact of COVID-19

The directors have considered the impact of COVID-19 on the operations of the Company and make the following observations:

(1)  Kazia’s key clinical trials (phase II study of paxalisib in glioblastoma and phase I study of Cantrixil in ovarian cancer) were fully 

recruited prior to the onset of restrictions associated with COVID-19 in the United States and Australia;

(2)  the GMB AGILE study, which is planned to serve as a pivotal study for paxalisib in glioblastoma, remains on track, and 

initiation of recruitment continues to be expected in 2H CY2020;

(3)  In general, clinical research in advanced cancer is relatively protected from pandemic disruption due to the ongoing and 

time-critical need for patient care in specialised facilities which cannot easily be repurposed;

(4)  The Company is pre-revenue, and so changes in customer behaviour over the next several years due to public health 

restrictions and reduced economic activity have little to no impact on its finances;

Accordingly the directors do not foresee any material impacts on the Company’s operations as a result of the COVID-19 
outbreak.

Rounding of amounts

The Company is a type of Company referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 
2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest dollar.

20

KAZIA THERAPEUTICS LIMITEDResearch and development report

The company’s lead development candidate is paxalisib (formerly known as GDC-0084), a small molecule, brain-penetrant 
inhibitor of the PI3K / Akt / mTor pathway, that is being developed as a potential therapy for glioblastoma (GBM), the most 
common most aggressive form of primary brain tumour in adults, as well as other forms of brain cancer. Paxalisib is orally 
administered and is presented in a 15mg capsule formulation. The development candidate is the subject of IND 112,608 with the 
US FDA, and was granted orphan designation in February 2018.

Paxalisib was developed by Genentech, Inc (South San Francisco, California) and the company entered into a worldwide exclusive 
license for the asset in October 2016. Prior to this transaction, Genentech had completed an extensive preclinical development 
program that provided convincing validation for paxalisib as a potential drug for brain cancer. Genentech also completed a phase 
I clinical trial in 47 patients with advanced recurrent grade III and grade IV glioma. The most common adverse events were oral 
mucositis and hyperglycemia. Per RANO criteria, 40% of patients exhibited a best observable response of stable disease, and 
26% demonstrated a metabolic partial response on FDG-PET.

The development candidate was granted the International Non-Proprietary Name (INN) ‘paxalisib’ by the World Health 
Organisation in December 2019. This was confirmed as the United States Adopted Name (USAN) by the USAN Council in April 
2020.

During the period, the company has completed recruitment to a phase IIa clinical study in patients with newly-diagnosed 
glioblastoma who exhibit unmethylated MGMT promotor status (NCT03522298). Unmethylated MGMT status confers near-total 
resistance to temozolomide, the existing standard of care, and represents approximately two-thirds of the total incident GBM 
population. This phase IIa study recruited patients at five centres in the United States. 

In May 2019, the company reported interim data from the initial dose escalation component of the study. In the newly-diagnosed 
population, a maximum tolerated dose (MTD) of 60mg was achieved, which is higher than the MTD of 45mg reported in the 
phase I study in recurrent patients. Adverse events were generally mild and reversible. Dose-limiting toxicities of mucositis and 
hyperglycemia were consistent with the PI3K inhibitor class and with prior clinical experience of this agent. In November 2019, 
the company reported initial interim efficacy data from the dose escalation component at the Society for Neuro-Oncology (SNO) 
Annual Meeting. These data showed a median progression-free survival of 8.4 months, which compares favourably in an indirect 
comparison to temozolomide, the existing standard of care, which is associated with a mPFS of 5.3 months in this population. In 
June 2020, an additional interim analysis was presented at the American Association of Cancer Research (AACR) Virtual Annual 
Meeting II, which showed a mPFS of 8.5 months on the entire data set and a median overall survival (OS) of 17.7 months. The 
corresponding figure for temozolomide is 12.7 months. Final data is expected in late CY2020 or early CY2021.

In February 2020, the company’s collaborators at St Jude Children’s Research Hospital in Memphis, TN completed recruitment 
to a phase I investigator-initiated clinical study of paxalisib in diffuse intrinsic pontine glioma (DIPG), a rare but highly-aggressive 
childhood brain cancer with no approved pharmacological treatments (NCT03696355). The St Jude study seeks to establish an 
MTD in the paediatric population before enrolling an expansion cohort to seek definitive signals of efficacy. The St Jude study is 
primarily funded by the hospital, with support via a financial grant from Kazia. In September 2019, the company announced that a 
pediatric MTD of 27 mg/m2 had been determined, which is approximately comparable to the doses used in adult clinical studies. 
Initial interim efficacy data is expected in 2H CY2020. 

A phase II investigator-initiated clinical study is ongoing at Dana-Farber Cancer Institute in Boston, MA, exploring paxalisib in 
combination with Herceptin (trastuzumab) for HER2+ breast cancer brain metastases, a population for which there are again no 
approved pharmacological treatments (NCT03765983). The Dana-Farber study is primarily funded by the hospital, with support 
via a financial grant from Kazia. Initial interim efficacy data is expected in 2H CY2020.

In May 2019, the company joined a phase II clinical study sponsored by the Alliance for Clinical Trials in Oncology, a large 
academic research organisation, and funded by the US National Cancer Institute (NCT03994796). The Alliance study is a 
genomically-guided, multi-drug study in patients with brain metastases from any primary tumour. Those with mutations affecting 
the PI3K / Akt / mTOR pathway will be assigned to receive paxalisib, while patients with other driving mutations may receive 
abemaciclib (Eli Lilly & Company) or entrectenib (Genentech, Inc). The study commenced recruitment on schedule in July 2019, 
and is expected to recruit approximately 150 patients, evenly divided between the three treatment arms, over the course of a 
two-year period. The company is not yet in a position to provide guidance on the timing of likely data read-outs.

In July 2019, the company entered into a collaboration with researchers at Memorial Sloan Kettering Cancer Center in New York, 
NY to conduct a phase I clinical study with paxalisib in combination with radiotherapy for brain metastases and leptomeningeal 
metastases (NCT04192981). The Sloan Kettering study is primarily funded by the hospital, with support via a financial grant from 
Kazia. Recruitment commenced in Q4 CY2019 and the study is ongoing.

In December 2019, the company entered into a preliminary agreement with the Global Coalition for Adaptive Research (GCAR), 
a US-based 501(C)(3) non-profit organisation dedicated to advancing the development of new therapies via the application 
of cutting edge statistical methodologies. The agreement relates to set-up work for the planned entry of paxalisib into GBM 
AGILE, an international multi-drug platform study in glioblastoma that is sponsored by GCAR. The first agent to enter GBM 
AGILE was Bayer’s Stivarga (regorafenib), and paxalisib was invited onto the study as the second agent by GCAR’s Arm Selection 
Committee in 4Q CY2019. It is envisaged that further agents will be added in due course. GBM AGILE is heavily supported by 
clinicians and regulatory agencies, and provides an optimal path to market for paxalisib in glioblastoma. As a result, the company 
has discontinued development of its own planned phase III clinical study and has adopted GBM AGILE as the pivotal study for 
registration of paxalisib. It is expected that recruitment to the paxalisib arm will commence in 2H CY2020.

Two key research papers were published in relation to paxalisib during FY2020. First, a paper by Wen et al. in Clinical Cancer 
Research presented a definitive analysis of the Genentech phase I clinical study in recurrent glioma. This data had previously only 
been available to researchers via a 2016 ASCO poster. Second, Ellingson et al. published a paper in the same journal detailing a 

21

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020post hoc analysis of the Genentech phase I study, using advanced imaging analysis methodologies. The Ellingson analysis was 
able to correlate plasma concentrations of paxalisib with pharmacodynamic changes on MRI and PET, and to also connect those 
changes with progression-free survival. As such, the analysis provides a powerful pharmacodynamic proof-of-concept for the 
drug in glioblastoma. 

Cantrixil (TRX-E-002-1) is the company’s second clinical asset, and is derived from a proprietary drug discovery program. It is 
being developed as a potential therapy for ovarian cancer.

Research undertaken by Yale University (New Haven, Connecticut) has provided preclinical evidence that Cantrixil is active against 
both differentiated cancer cells and tumour-initiating cells (sometimes referred to as ‘cancer stem cells’). The latter are thought 
to be an important component of chemotherapy resistance and disease recurrence in diseases such as ovarian cancer, and thus 
Cantrixil has potential to offer benefit to the approximately three-quarters of ovarian cancer patients who are not adequately 
managed by conventional chemotherapy treatments.

In December 2016, the company commenced a phase I clinical trial of Cantrixil in patients with ovarian cancer (NCT02903771). 
The study is designed to establish the safety and tolerability of the development candidate, to determine a Maximum Tolerated 
Dose (MTD), and to explore indicative signals of clinical efficacy. Data from the initial dose escalation cohort was reported at the 
American Association of Cancer Research meeting in April 2019. Cantrixil was broadly well-tolerated, and an MTD of 5 mg/kg was 
determined. Dose-limiting toxicities were generally gastrointestinal in nature. The company presented an interim efficacy analysis 
at the American Association of Cancer Research (AACR) Virtual Annual Meeting II, which reported a median progression-free 
survival of 5.5 months. Of 16 evaluable patients, one exhibited a complete response (CR), and two demonstrated a partial 
response to treatment (PR), making for an overall response rate (ORR) of 19%. The company expects to report final data from this 
study by the end of CY2020.

Subsequent events

Since the end of the financial year, the United States Food and Drug Administration (FDA) has awarded Rare Pediatric Disease 
Designation (RPDD) to Kazia’s paxalisib (formerly GDC-0084) for the treatment of Diffuse Intrinsic Pontine Glioma (DIPG), a rare 
and highly-aggressive childhood brain cancer. In August 2020 United States Food and Drug Administration (FDA) has granted 
Orphan Drug Designation (ODD) to Kazia’s paxalisib (formerly GDC-0084) for the treatment of malignant glioma, which includes 
Diffuse Intrinsic Pontine Glioma (DIPG), a rare and highly aggressive childhood brain cancer. During August 2020 the FDA has 
also granted Fast Track Designation (FTD) to paxalisib for the treatment of glioblastoma, the most common and most aggressive 
form of primary brain cancer

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the consolidated entity during the financial year.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

The consolidated entity has a reasonable expectation that over the course of the coming 12 months:

•  Final results will be reported from the phase II clinical trial of paxalisib in glioblastoma;

•  Final results will be reported from the phase I clinical trial of Cantrixil (TRX-E-002-1) in ovarian cancer;

• 

• 

Interim results will be reported from the phase I clinical trial of paxalisib in DIPG at St Jude Children’s Research Hospital;

Interim results will be reported from the phase II clinical trial of paxalisib in HER2+ brain metastases at Dana-Farber Cancer 
Institute; and

•  Recruitment will commence to the GBM AGILE pivotal study of paxalisib in glioblastoma.

ENVIRONMENTAL REGULATION

The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State law.

22

KAZIA THERAPEUTICS LIMITEDINFORMATION ON DIRECTORS

‘Other current directorships’ quoted below are current directorships for listed entities only and excludes directorships of all other 
types of entities, unless otherwise stated.

‘Former directorships (last 3 years)’ quoted below are directorships held in the last 3 years for listed entities only and excludes 
directorships of all other types of entities, unless otherwise stated.

Name:

Title:

Iain Ross

Non-Executive Director, Chairman

Qualifications:

B.Sc. (Hons). C Dir.

Experience and expertise:

Iain, based in the UK, is an experienced Director and has served on a number of 
Australian company boards.  He is Chairman of Redx Pharma plc (LSE:REDX), Silence 
Therapeutics plc (LON:SLN) and Biomer Technology Limited.  In his career he has 
held senior positions in Sandoz AG, Fisons Plc, Hoffmann-La Roche AG and Celltech 
Group Plc and also undertaken a number of start-ups and turnarounds on behalf 
of banks and private equity groups. His track record includes multiple financing 
transactions having raised in excess of £300 million, both publicly and privately, as 
well as extensive experience of divestments and strategic restructurings and has 
over 20 years in cross-border management as a Chairman and CEO. He has led and 
participated in six London Stock Exchange (‘LSE’) Initial Public Offerings,(4 LSE, 1 ASX, 
1 NASDAQ) and has direct experience of mergers and acquisitions transactions in 
Europe, USA and the Pacific Rim.

Other current directorships:

Redx Pharma plc (LSE:REDX), Silence Therapeutics plc (LON:SLN)

Former directorships (last 3 years):

Premier Veterinary Group Plc (LSE:PVG), Anatara Lifesciences Limited (ASX:ANR) and 
e-Therapeutics plc (LSE:ETX).

Special responsibilities:

Interests in shares:

Interests in options:

Contractual rights to shares:

Name:

Title:

Member of Remuneration and Nomination Committee, Member of Audit, Risk and 
Governance Committee.

800,001 ordinary shares

None

None

Bryce Carmine

Non-Executive Director

Qualifications:

B.Sc., Biochemistry, Microbiology & Genetics

Experience and expertise:

Bryce spent 36 years working for Eli Lilly & Co. and retired as Executive Vice President 
for Eli Lilly & Co, and President, Lilly Bio-Medicines. Prior to this he lead the Global 
Pharmaceutical Sales and Marketing and was a member of the company’s Executive 
Committee.  Mr Carmine previously held a series of product development portfolio 
leadership roles culminating when he was named President, Global Pharmaceutical 
Product Development, with responsibility for the entire late-phase pipeline 
development across all therapeutic areas for Eli Lilly.  During his career with Lilly, 
Bryce held several country leadership positions including President Eli Lilly Japan, 
Managing Dir. Australia/NZ & General Manager of a JV for Lilly in Seoul, Korea.  Bryce 
is currently Chairman and CEO of HaemaLogiX Pty Ltd, a Sydney based privately 
owned biotech.

Other current directorships:

Former directorships (last 3 years):

None

None

Special responsibilities:

Interests in shares:

Interests in options:

Contractual rights to shares:

Name:

Title:

Qualifications:

Member of Audit, Risk and Governance Committee, Chair of Remuneration and 
Nomination Committee.

266,293 ordinary shares

None

None

Steven Coffey

Non-Executive Director

B. Comm, CA

23

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020 
 
Experience and expertise:

Steven is a Chartered Accountant and registered company auditor and has 
over 35 years experience in the accounting and finance industry. He has been a 
partner in the chartered accounting firm Watkins Coffey Martin since 1993. He is a 
Non-executive Director of The Docyard Limited (ASX:TDY) and chairs both the Audit 
and Risk Committee and the Remuneration Committee for that company. Steven sits 
on the board of a number of large private family companies and audits a number of 
large private companies and not-for-profit entities.

Other current directorships:

The Docyard Limited (ASX:TDY)

Former directorships (last 3 years):

None

Special responsibilities:

Chair of Audit, Risk and Governance Committee, Member of Remuneration and 
Nomination Committee.

Interests in shares:

326,474 ordinary shares

Contractual rights to shares:

None

Name:

Title:

Dr James Garner

Chief Executive Officer, Managing Director

Qualifications:

MA, MBA, MBBS, BSc (Hons), MAICD

Experience and expertise:

Dr Garner is an experienced life sciences executive who has previously worked with 
companies ranging from small biotechs to multinational pharmaceutical companies 
such as Biogen and Takeda. His career has focused on regional and global 
development of new medicines from preclinical to commercialisation. 

Dr Garner is a physician by training and holds an MBA from the University of 
Queensland. He began his career in hospital medicine and worked for a number of 
years as a corporate strategy consultant with Bain & Company before entering the 
pharmaceutical industry. Prior to joining Kazia in 2016, he led R&D strategy for Sanofi 
in Asia-Pacific and was based in Singapore.

Other current directorships:

Former directorships (last 3 years):

None

None

Interests in shares:

Interests in options:

275,000 ordinary shares 

1,200,000 options with exercise price of $0.4925 expiring 4 January 2024

Contractual rights to shares:

None

COMPANY SECRETARY

Kate Hill (CA, GAICD, BSc (Hons)) has held the role of Company Secretary since 9 September 2016. 

Kate has over 20 years’ experience as an audit partner with Deloitte Touche Tohmatsu, working with ASX listed and privately 
owned clients. She has worked extensively in regulated environments including assisting with Initial Public Offerings, capital 
raising and general compliance, as well as operating in an audit environment. She is a Non-executive Director of Countplus 
Limited (ASX:CUP) and Elmo Software Limited (ASX:ELO) as well as Chair of their Audit and Risk Committees. She is also Chair of 
Seeing Machines Limited (AIM:SEE).

MEETINGS OF DIRECTORS

The number of meetings of the company’s Board of Directors (‘the Board’) and of each Board committee held during the year 
ended 30 June 2020, and the number of meetings attended by each director were:

Full Board

Audit,  
Risk & Governance 
Committee

Remuneration &  
Nomination  
Committee

Attended

Held

Attended

Held

Attended

Held

9

9

9

9

9

9

9

9

2

2

2

-

2

2

2

-

1

1

1

-

1

1

1

-

Iain Ross

Bryce Carmine

Steven Coffey

James Garner

Held: represents the number of meetings held during the time the director held office or was a member of the relevant 
committee.

24

KAZIA THERAPEUTICS LIMITED 
 
 
REMUNERATION REPORT (AUDITED)

The remuneration report, which has been audited, outlines the Key Management Personnel (‘KMP’) remuneration arrangements 
for the consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations.

KMP are defined as those persons having authority and responsibility for planning, directing and controlling the major activities 
of the group, directly or indirectly.

The remuneration report is set out under the following main headings:

•  Principles used to determine the nature and amount of remuneration

•  Details of remuneration

•  Service agreements

•  Share-based compensation

•  Additional disclosures relating to key management personnel

Principles used to determine the nature and amount of remuneration

Remuneration philosophy 
Remuneration for Directors and Senior Executives is based on the overall objective of attracting and retaining people of high 
quality who will make a worthwhile contribution to the consolidated entity in the short, medium and long term, and thereby 
contribute to long term shareholder value. The Board and its Remuneration and Nomination Committee take a balanced position 
between the need to pay market rates to attract talent, and the financial resources of the consolidated entity, in determining 
remuneration.

Non-Executive Directors remuneration
The Constitution of the consolidated entity and the ASX listing rules specify that the aggregate remuneration of Non-Executive 
Directors shall be determined from time to time by General Meeting. The last determination for the consolidated entity was at the 
Annual General Meeting held on 28 October 2005 when the shareholders approved an aggregate remuneration of $560,000.

Non-Executive Directors’ fees are reviewed periodically by the Board and are regularly compared with those of companies of 
comparable market capitalisation and stage of development. The Chairman’s fees are determined independently to the fees of 
other non-executive Directors based on comparative roles in the external market. The Non-Executive Directors fee structure is a 
fixed fee model and includes superannuation. Directors fees for the current financial year have been held at the same level as in 
the prior financial year.

Executive Directors and other KMP
The Board and the Remuneration and Nomination Committee, in consultation with the Managing Director, have put in 
place a remuneration structure which provides incentive for employees to drive the activities of the company forward. These 
arrangements are reviewed annually at the end of the calendar year.

The Board determines an appropriate level of fixed remuneration for the CEO and Group Executives, as well as the proportion of 
performance based remuneration.

The executive remuneration and reward framework has three components:

• 

fixed remuneration

•  short-term performance incentives - cash bonus

•  share-based payments - award of options through the ESOP

Fixed remuneration is reviewed annually by the Remuneration and Nomination Committee based on individual performance, 
the overall performance of the consolidated entity and comparable market remunerations. The Remuneration and Nomination 
Committee approved increases in fixed remuneration during the financial year ended 30 June 2020.

25

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020The short-term incentives program is designed to align the targets of the consolidated entity with the performance hurdles of 
executives. Short-term incentive payments are granted to executives based on specific annual performance objectives, metrics 
and performance appraisals. Annual performance reviews are conducted at the end of each calendar year and bonuses are paid 
shortly after the performance reviews are completed. Annual performance objectives cover matters such as progress in clinical 
trials, and management of the Company’s financial resources.

The Board or the Remuneration and Nomination Committee may, at its discretion, award bonuses for exceptional performance.

The Remuneration and Nomination Committee approved the payment of cash bonuses to the CEO and employees in respect of 
the financial year ended 30 June 2020.

The long-term incentive comprises equity-based payments. The consolidated entity aims to attract and retain high calibre 
executives, and align their interests with those of the shareholders, by granting equity-based payments which are issued at a 
premium to the share price on date of issue and vest in tranches based on tenure.  The share-options issued to executives are 
governed by the ESOP.

Employee share option plan
The Employee Share Option Plan (‘ESOP’) was most recently approved by shareholders on 15 November 2017.

The ESOP provides for the issue of options to eligible individuals, being employees or Officers of the consolidated entity, however 
it excludes Non-Executive Directors.

Each option issued under the ESOP entitles its holder to acquire one fully paid ordinary share and is exercisable at a price based 
on a formula, which includes the weighted average price of such shares at the close of trading on the Australian Securities 
Exchange for the seven days prior to the date of issue, and a premium which is applied to this value. The number of options 
offered, the amount payable, the vesting period, the option period, the conditions of exercise or any other factors are at the 
discretion of the Board of Directors.

The consolidated entity issued 1,450,000 share options under the ESOP during the financial year that ended 30 June 2020, of 
which 1,300,000 were issued to KMP. 

Any change to the ESOP will require approval by shareholders.

Use of remuneration consultants
During the financial year ended 30 June 2020, the consolidated entity did not engage remuneration consultants.

Details of remuneration

Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.

The KMP of the consolidated entity consisted of the following directors of Kazia Therapeutics Limited:

• 

Iain Ross - Non-Executive Director, Chairman 

•  Bryce Carmine - Non-Executive Director

•  Steven Coffey - Non-Executive Director

•  Dr James Garner - Managing Director, CEO

And the following persons:

•  Gabrielle Heaton - Director of Finance and Administration 

•  Kate Hill - Company Secretary 

26

KAZIA THERAPEUTICS LIMITEDShort-term benefits

Post-
employment 
benefits

Share-
based 
payments

Cash salary  
and fees
$

Cash 
bonus
$

Movements 
in accrued 
leave  
Non- 
monetary
$

Super- 
annuation
$

Equity- 
settled 
options
$

Total
$

135,272

75,000

75,000

-

-

-

-

-

-

-

7,125

7,125

-

-

-

135,272

82,125

82,125

473,000 180,000

23,423

62,035

206,465

944,923

195,000

17,500

127,875

15,000

7,275

-

20,188

10,745

250,708

-

12,826

155,701

1,081,147

212,500

30,698

96,473

230,036

1,650,854

2020

Non-Executive Directors:

I Ross*

B Carmine

S Coffey

Executive Directors:

J Garner

Other Key Management Personnel:

G Heaton

K Hill

* 

Salary paid in UK pounds, but disclosed in Australian dollars using a conversion rate of 0.5323

The table above does not include long service leave as no KMP have been employed by the consolidated entity for more than 
5 years.

27

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020Short-term benefits

Post-
employment 
benefits

Share-
based 
payments

Cash salary  
and fees
$

Cash 
bonus
$

Movements 
in accrued 
leave  
Non-
monetary
$

Super- 
annuation
$

Equity- 
settled 
options
$

Total
$

130,270

75,000

75,000

-

-

-

-

-

-

-

7,125

7,125

-

-

-

130,270

82,125

82,125

445,500

90,000

16,562

50,873

88,150

691,085

180,000

20,400

125,000

15,000

1,030,770

125,400

2,666

-

19,228

19,038

-

15,280

21,580

237,384

161,580

84,161

125,010

1,384,569

2019

Non-Executive Directors:

I Ross*

B Carmine

S Coffey

Executive Directors:

J Garner

Other Key Management Personnel:

G Heaton

K Hill

* 

Salary paid in UK pounds, but disclosed in Australian dollars using a conversion rate of 0.5527

The table above does not include long service leave as no KMP have been employed by the consolidated entity for more than 
5 years. 

The relative proportions of remuneration that are linked to performance and those that are at risk

Name

Non-Executive Directors:

Iain Ross

Bryce Carmine

Steven Coffey

Executive Directors:

James Garner

Other Key Management Personnel:

Gabrielle Heaton

Kate Hill

Fixed remuneration

At risk - STI

At risk - LTI

2020

2019

2020

2019

2020

2019

100%

100%

100%

100%

100%

100%

-

-

-

-

-

-

-

-

-

59%

74%

19%

13%

22%

89%

82%

85%

78%

7%

10%

9%

9%

4%

8%

-

-

-

13%

6%

13%

28

KAZIA THERAPEUTICS LIMITEDConsequences of performance on shareholder wealth
Shareholder wealth in a company engaged in drug development is generally driven by successful commercialisation, out-licence 
or sale of a drug candidate, and is a long term proposition, rather than being linked to annual financial performance. The 
directors have selected a CEO and key management team who, in the directors’ opinion, are well placed to realise such an 
outcome for our shareholders. Now that the current CEO and management team have been in place for a number of years, 
the directors are able to provide the below table showing increase in enterprise value of the Company over the relevant period, 
with details of bonuses and options awarded each year, to demonstrate the link between performance, reward and increase in 
shareholder wealth.

Jun-16

Jun-17

Jun-18

Jun-19

Jun-20

Enterprise value

3,794,773

5,736,560

12,659,955

14,884,643

35,582,939

Total bonuses paid to KMP

Number of bonus participants

Share options issued to KMP

38,967

191,135

4

5

-

-

125,400

212,500

3

3

880,000

450,000

362,000

100,000

1,300,000

Number of KMP granted options

3

2

2

2

3

Enterprise Value of the Company has been calculated as the market capitalisation of the Company at each period end, adjusted 
for cash held at year end, and the for anticipated R&D cash rebate (deemed to be essentially cash). The use of Enterprise Value 
seeks to represent the underlying value of the business after adjusting for cash or debt balances. 

During the year ended 30 June 2016, a total of 750,000 options were issued to the newly appointed CEO, Dr James Garner, and 
these have now been cancelled and replaced with 1,200,000 options issued in the current financial year. Both of these grants are 
included in the above analysis, although the recent grant of 1,200,000 is in replacement of the initial grant.

Voting and comments made at the consolidated entity’s last Annual General Meeting
The consolidated entity received 98.64% of “yes” votes on its Remuneration Report for the financial year ending 30 June 2019. 
The consolidated entity received no specific feedback on its Remuneration Report at the Annual General Meeting.

Bonuses included in remuneration
Details of short term incentive cash bonuses awarded as remuneration to each key management personnel are included in the 
above tables.

Service agreements

Under Remuneration and Nomination Committee policy, employment contracts are entered into with each of the executives 
who is considered to be KMP. Under the terms of the contracts, remuneration is reviewed at least annually. The employment 
contracts of KMPs include a termination clause whereby a party can terminate the agreement on notice. Such notice may vary 
between 4 weeks and 6 months. Under the terms of each contract, payment in lieu can be made by the consolidated entity to 
substitute the notice period. The consolidated entity may terminate the contracts at any time without cause if serious misconduct 
has occurred. In the event that employment is terminated for cause, no severance pay or other benefits are payable by the 
consolidated entity.

Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of 
these agreements are as follows:

Name:

Title:

James Garner

Chief Executive Officer, Managing Director

Agreement commenced:

1 February 2016

Term of agreement:

Full-time employment

Details:

Name:

Title:

Base salary to be reviewed annually by the Remuneration and Nomination Committee. 
James’s appointment with the consolidated entity may be terminated with the consolidated 
entity giving 6 months’ notice or by James giving 6 months’ notice. The consolidated entity 
may elect to pay James equal amount to that proportion of his salary equivalent 6 months’ 
pay in lieu of notice, together with any outstanding entitlements due to him.

The current base salary, as from 1 January 2020, is $488,000 including an allowance for 
health benefits.

Gabrielle Heaton

Director of Finance and Administration

Agreement commenced:

13 March 2017

Term of agreement:

Full time employment

Details:

Base salary to be reviewed annually by the Remuneration and Nomination Committee. 
Gabrielle’s appointment with the consolidated entity may be terminated with the consolidated 
entity giving 4 weeks’ notice or by Gabrielle giving 4 weeks’ notice. The consolidated entity 
may elect to pay Gabrielle equal amount to that proportion of her salary equivalent 4 weeks’ 
pay in lieu of notice, together with any outstanding entitlements due to her.

The current base salary, from 1 January 2020, is $200,000.

29

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020Name:

Title:

Kate Hill

Company Secretary

Agreement commenced:

9 September 2016

Term of agreement:

Part-time contractor

Details:

Base remuneration is based on time worked. Daily rate to be reviewed annually by 
the Remuneration and Nomination Committee, with an uplift of 10% on the daily rate 
applied from 1 January 2019. The contract is open ended. Kate’s appointment with the 
consolidated entity may be terminated with the consolidated entity giving 60 days’ notice 
or by Kate giving 60 days’ notice.

Key management personnel have no entitlement to termination payments in the event of removal for misconduct.

Share-based compensation

Issue of shares
The terms and conditions of each grant of options over ordinary shares granted as remuneration to Directors or other Key 
Management Personnel in this financial year or future financial years are set out below.

The options issued on 13 November 2019 were to James Garner, and represented part of a modification to an earlier tranche of 
options granted to Dr Garner in early 2016.

The options which were cancelled as part of this modification had the following terms:

• 

Initially granted on 1 February 2016

•  500,000 had a exercise price of $1.988 and were fully vested at the time of the cancellation, expiry 1 February 2021

•  250,000 had a exercise price of $2.606 and were unvested at the time of the cancellation, expiry 1 February 2021

•  On the date of cancellation, the fair value of the options was de minimus.

The newly issued options had the following terms:

•  Exercise price of $0.49

•  50% fully vested at time of grant, the remainder to vest equally over a three-year period starting 4 January 2020

•  Expiry 4 January 2024

•  Fair value at grant date of $216,000

The options issued on 13 January 2020 were to Kate Hill (50,000 options, with a fair value at grant date of $17,000) and Gabrielle 
Heaton (50,000 options, with a fair value at grant date of $17,000). There are no performance conditions, consistent with the 
Company’s Employee Share Option Plan rules, as reapproved by shareholders on 15 November 2017.

In all cases of employee options, an option will only vest if the option holder continues to be a full-time employee with the 
Company or an Associated Company during the vesting period relating to the option.

Grant date

13/11/2019

13/11/2019

13/11/2019

13/11/2019

13/01/2020

13/01/2020

13/01/2020

13/01/2020

 No  
of options 

Vesting  
 date

Exercise  
 date

Expiry date

Exercise price 
$

600,000

13/11/2019

13/11/2019

04/01/2024

200,000

04/01/2020

04/01/2020

04/01/2024

200,000

04/01/2021

04/01/2021

04/01/2024

200,000

04/01/2022

04/01/2022

04/01/2024

25,000

25,000

25,000

25,000

1,300,000

13/01/2021

13/01/2021

13/01/2025

13/01/2022

13/01/2022

13/01/2025

13/01/2023

13/01/2023

13/01/2025

13/01/2024

13/01/2024

13/01/2025

$0.49

$0.49

$0.49

$0.49

$0.88

$0.88

$0.88

$0.88

Fair value per 
option at  
grant 
$

$0.18

$0.18

$0.18

$0.18

$0.34

$0.34

$0.34

$0.34

Options granted carry no dividend or voting rights. Each option is convertible to one ordinary share upon exercise. No 
options were exercised or lapsed during the year. An option will only vest if the option holder continues to be a full-time 
employee with the Company or an Associated Company during the vesting period relating to the option.

30

KAZIA THERAPEUTICS LIMITEDAdditional disclosures relating to key management personnel

Shareholding
The number of shares in the company held during the financial year by each director and other members of Key Management 
Personnel of the consolidated entity, including their personally related parties, is set out below:

Ordinary shares

B Carmine

S Coffey

I Ross

J Garner

K Hill

G Heaton

Balance at  
the start of  
the year

Purchased 
on market

Balance at  
the end of  
the year

131,293

181,474

475,001

110,000

30,000

-

927,768

135,000

145,000

325,000

165,000

-

10,000

780,000

266,293

326,474

800,001

275,000

30,000

10,000

1,707,768

Option holding
The number of options over ordinary shares in the company held during the financial year by each Director and other members of 
Key Management Personnel of the consolidated entity, including their personally related parties, is set out below:

Options over ordinary shares

S Coffey *

J Garner **, ***

K Hill **

G Heaton **

Balance at  
the start of  
the year

Granted as 
remuneration

Expired

Cancelled 
as part of 
modification

Balance at 
the end of 
the year

5,875

750,000

270,000

192,000

-

(5,875)

-

-

1,200,000

50,000

50,000

-

-

-

(750,000)

1,200,000

-

-

320,000

242,000

1,217,875

1,300,000

(5,875)

(750,000)

1,762,000

* 
** 
*** 

The above listed options were not issued as part of remuneration.
Options issued under the Employee Share Option Plan. Unvested options are forfeited upon cessation of employment with the Company.
 The previously issued 750,000 options were cancelled and 1,200,000 new options issued. These transactions together have been accounted for 
as a modification.

Other transactions with key management personnel and their related parties
There was no other transaction with KMP and their related parties.

This concludes the remuneration report, which has been audited.

SHARES UNDER OPTION

Unissued ordinary shares of Kazia Therapeutics Limited under option at the date of this report are as follows. All options are 
unlisted and were issued under the Company’s Employee Share Option Plan.

Grant date

16 November 2015

5 September 2016

31 October 2016

12 October 2016

21 November 2016

7 August 2017

5 February 2018

4 January 2019

13 November 2019

13 January 2020

Expiry date

16 November 2020

5 September 2021

1 November 2021

17 October 2021

23 November 2021

7 August 2022

5 February 2023

4 January 2024

4 January 2024

13 January 2025

Exercise  
Price

Closing  
Balance

$2.200

$1.630

$1.380

$1.560

$1.380

$0.670

$0.780

$0.492

$0.492

$0.881

236,667

50,000

12,500

62,000

50,000

224,000

440,000

250,000

1,200,000

250,000

2,775,167

No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the 
company or of any other body corporate.

31

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020SHARES ISSUED ON THE EXERCISE OF OPTIONS

There were no ordinary shares of Kazia Therapeutics Limited issued on the exercise of options during the year ended 30 June 
2020 and up to the date of this report.

INDEMNITY AND INSURANCE OF OFFICERS

The consolidated entity has not indemnified the Directors and Executives of the consolidated entity for costs incurred, in their 
capacity as a Director or Executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the consolidated entity paid a premium in respect of a contract to insure the Directors and Executives 
of the consolidated entity against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance 
prohibits disclosure of the nature of the liability and the amount of the premium.

INDEMNITY AND INSURANCE OF AUDITOR

The consolidated entity has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of 
the consolidated entity or any related entity against a liability incurred by the auditor.

During the financial year, the consolidated entity has not paid a premium in respect of a contract to insure the auditor of the 
consolidated entity or any related entity.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of 
the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf 
of the company for all or part of those proceedings.

NON-AUDIT SERVICES

There were no non-audit services provided during the financial year by the auditor.

OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF GRANT THORNTON 
AUDIT PTY LTD

There are no officers of the company who are former partners of Grant Thornton Audit Pty Ltd.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out 
immediately after this directors’ report.

AUDITOR

Grant Thornton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.

This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the Directors

Dr James Garner

Managing Director, Chief Executive Officer

Mr Iain Ross

Chairman

27 August 2020

Sydney

32

KAZIA THERAPEUTICS LIMITED 
33

2020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020          Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389  ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.  Liability limited by a scheme approved under Professional Standards Legislation.  www.grantthornton.com.au Level 17, 383 Kent Street Sydney NSW 2000  Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230  T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au  Auditor’s Independence Declaration  To the Directors of Kazia Therapeutics Limited     In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Kazia Therapeutics Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit.    Grant Thornton Audit Pty Ltd Chartered Accountants     S M Coulton Partner – Audit & Assurance  Sydney, 27 August 2020  CONTENTS

Statement of profit or loss and other comprehensive income 

Statement of financial position 

Statement of changes in equity 

Statement of cash flows 

Notes to the financial statements 

Directors’ declaration 

Independent auditor’s report to the members of Kazia Therapeutics Limited 

Shareholder information 

Page

36

37

38

40

41

64

65

70

34

KAZIA THERAPEUTICS LIMITEDGENERAL INFORMATION

The financial statements cover Kazia Therapeutics Limited as a consolidated entity consisting of Kazia Therapeutics Limited and 
the entities it controlled at the end of or during the year. The financial statements are presented in Australian dollars, which is 
Kazia Therapeutics Limited’s functional and presentation currency.

Kazia Therapeutics Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered 
office and principal place of business is:

Three International Towers, 
Level 24 
300 Barangaroo Avenue 
Sydney NSW 2000

A description of the nature of the consolidated entity’s operations and its principal activities are included in the Directors’ report, 
which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 August 2020. The directors 
have the power to amend and reissue the financial statements.

35

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSRevenue and other income

Other income

Finance income

Expenses

Research and development expense

General and administrative expense

Loss on disposal of fixed assets

Fair value losses on financial assets at fair value through profit or loss

Loss on revaluation of contingent consideration

Loss before income tax benefit

Income tax benefit

Loss after income tax benefit for the year attributable to the owners of  
Kazia Therapeutics Limited

Other comprehensive income

Items that may be reclassified subsequently to profit or loss

Net exchange difference on translation of financial statements of foreign controlled 
entities, net of tax

Other comprehensive income for the year, net of tax

Total comprehensive income for the year attributable to the owners of  
Kazia Therapeutics Limited

Basic earnings per share

Diluted earnings per share

Note

Consolidated

2020
$

2019
$

5

995,000

1,465,428

65,905

99,619

(9,494,328)

(6,475,626)

(3,689,867)

(3,785,563)

-

(1,076)

(167,814)

(1,808,512)

(474,557)

(62,729)

(12,765,661)

(10,568,459)

7

298,195

298,195

(12,467,466)

(10,270,264)

(3,520)

(3,520)

(88,986)

(88,986)

(12,470,986)

(10,359,250)

Cents

(17.07)

(17.07)

Cents

(17.86)

(17.86)

32

32

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying 
notes

36

STATEMENT OF PROFIT OR LOSS AND  OTHER COMPREHENSIVE INCOMEFor the year ended 30 June 2020KAZIA THERAPEUTICS LIMITEDAssets

Current assets

Cash and cash equivalents

Trade and other receivables

Other

Total current assets

Non-current assets

Financial assets

Intangibles

Total non-current assets

Total assets

Liabilities

Current liabilities

Trade and other payables

Provisions

Contingent consideration

Total current liabilities

Non-current liabilities

Deferred tax

Contingent consideration

Total non-current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Other contributed equity

Reserves

Accumulated losses

Total equity

Note

Consolidated

2020
$

2019
$

8

9

10

11

12

13

14

15

16

17

18

19

20

8,764,044

5,433,868

1,352,252

537,305

10,653,601

1,710,703

369,604

7,514,175

-

167,814

12,410,139

13,494,483

12,410,139

13,662,297

23,063,740

21,176,472

3,488,933

1,763,940

191,451

136,352

1,387,089

-

5,067,473

1,900,292

3,412,788

457,899

3,870,687

8,938,160

3,710,983

1,370,431

5,081,414

6,981,706

14,125,580

14,194,766

48,781,214

36,641,519

464,000

464,000

1,065,923

2,037,453

(36,185,557)

(24,948,206)

14,125,580

14,194,766

The above statement of financial position should be read in conjunction with the accompanying notes

37

STATEMENT OF FINANCIAL POSITIONAs at 30 June 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020Consolidated

Contributed 
equity
$

Other
contributed
equity
$

Foreign
currency
translation
reserve
$

Share
based
payments
reserve
$

Accumulated

losses Total equity
$

$

Balance at 1 July 2018

31,575,824

464,000

(362,682)

2,242,734

(14,677,942)

19,241,934

Loss after income tax benefit  
for the year

Other comprehensive income  
for the year, net of tax

Total comprehensive income  
for the year

Shares issued (note 18)

Share issue costs (note 18)

Transactions with owners in their 
capacity as owners:

-

-

-

5,405,760

(340,065)

Share-based payments (note 33)

-

-

-

-

-

-

-

-

(88,986)

(88,986)

-

-

-

-

-

-

-

-

246,387

(10,270,264)

(10,270,264)

-

(88,986)

(10,270,264)

(10,359,250)

-

-

-

5,405,760

(340,065)

246,387

Balance at 30 June 2019

36,641,519

464,000

(451,668)

2,489,121

(24,948,206)

14,194,766

The above statement of changes in equity should be read in conjunction with the accompanying notes

38

STATEMENT OF CHANGES IN EQUITYFor the year ended 30 June 2020KAZIA THERAPEUTICS LIMITEDConsolidated

Contributed
equity
$

Other
contributed
equity
$

Foreign
currency
translation
reserve
$

Share
based
payments
reserve
$

Accumulated

losses Total equity
$

$

Balance at 1 July 2019

36,641,519

464,000

(451,668)

2,489,121

(24,948,206)

14,194,766

Loss after income tax benefit  
for the year

Other comprehensive income  
for the year, net of tax

Total comprehensive income  
for the year

Shares issued (note 18)

Share issue costs (note 18)

Transactions with owners in their 
capacity as owners:

Share-based payments (note 33)

Expired options

-

-

-

12,972,747

(833,052)

-

-

-

-

-

-

-

-

-

-

(3,520)

(3,520)

-

-

-

-

-

-

-

-

-

262,105

(12,467,466)

(12,467,466)

-

(3,520)

(12,467,466)

(12,470,986)

-

-

-

12,972,747

(833,052)

262,105

-

(1,230,115)

1,230,115

Balance at 30 June 2020

48,781,214

464,000

(455,188)

1,521,111

(36,185,557)

14,125,580

The above statement of changes in equity should be read in conjunction with the accompanying notes

39

STATEMENT OF CHANGES IN EQUITY (CONTINUED)For the year ended 30 June 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSANNUAL REPORT 2020Cash flows from operating activities

Payments to suppliers (inclusive of GST)

R&D cash rebate

Net cash used in operating activities

Cash flows from investing activities

Proceeds from disposal of shares

Net cash from investing activities

Cash flows from financing activities

Proceeds from issue of shares

Net cash from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year

Effects of exchange rate changes on cash and cash equivalents

Note

Consolidated

2020
$

2019
$

(10,200,368)

(8,905,468)

1,390,849

2,191,258

31

(8,809,519)

(6,714,210)

-

-

2,359,137

2,359,137

18

12,139,695

12,139,695

3,815,695

3,815,695

3,330,176

(539,378)

5,433,868

5,956,182

-

17,064

Cash and cash equivalents at the end of the financial year

8

8,764,044

5,433,868

The above statement of cash flows should be read in conjunction with the accompanying notes

40

STATEMENT OF CASH FLOWSFor the year ended 30 June 2020KAZIA THERAPEUTICS LIMITEDNOTE 1. GENERAL INFORMATION 

The financial statements cover Kazia Therapeutics Limited as a consolidated entity consisting of Kazia Therapeutics Limited and 
its subsidiaries. The financial statements are presented in Australian dollars, which is Kazia Therapeutics Limited’s functional and 
presentation currency. 

Kazia Therapeutics Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered 
office and principal place of business is:

Three International Towers 
Level 24, 300 Barangaroo Avenue 
Sydney NSW 2000

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 27 August 2020. The Directors 
have the power to amend and reissue the financial statements.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have 
been consistently applied to all the years presented, unless otherwise stated. 

New or amended Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the 
Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. 

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 

Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting Standards 
and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not have any 
significant impact on the financial performance or position of the consolidated entity. 

The following new Accounting Standards and Interpretations are most relevant to the consolidated entity:

AASB 16 Leases

General impact of application of AASB 16 Leases
AASB 16 has been applied from 1 July 2019. The standard introduces new requirements with respect to lease accounting by 
removing the distinction between operating and finance leases, requiring the recognition of a right-of-use asset and a lease 
liability at commencement for all leases except for short-term leases, being those less than 12 months, and leases of low-value 
assets.

Impact of the definition of a new lease
The change in definition of a lease mainly relates to the concept of control. AASB 16 determines whether a contract contains a 
lease on the basis of whether the customer has the right to control the use of an identified asset for a period of time in exchange 
for consideration. The consolidated entity has applied this definition to all lease contracts currently held. The new policy is set out 
below.

As the consolidated entity is not party to any material leases with a term in excess of 12 months, the adoption of the new standard 
has not had a material impact on the current period.

Interpretation 23 Uncertain tax positions

Interpretation 23 clarified the application of the recognition and measurement criteria in AASB 112 Income Taxes (AASB 112) 
where there is uncertainty over income tax treatments and requires an assessment of each uncertain tax position as to whether 
it is probable that a taxation authority will accept the position. Where it is not probable, the effect of the uncertainty is reflected 
in determining the relevant taxable profit or loss, tax bases, unused tax losses and unused tax credits or tax rates. The amount 
is determined as either the single most likely amount or the sum of the probability weighted amounts in a range of possible 
outcomes, whichever better predicts the resolution of the uncertainty. Judgments are reassessed as and when new facts and 
circumstances are presented.

Interpretation 23 is effective for the Group’s annual financial reporting period beginning on 1 July 2019. The Company is of the 
view that there are no material uncertain positions which impact the Group’s accounting for income taxes.

Going concern

The consolidated entity incurred a loss after income tax of $12,467,466 (2019: $10,270,264), was in a net current asset position 
of $5,586,128 (2019: net current asset position of $5,613,883) and had net cash outflows from operating activities of $8,809,519 
(2019: $6,714,210) for the year ended 30 June 2020. 

As at 30 June 2020 the consolidated entity had cash in hand and at bank of $8,764,044.

The financial statements have been prepared on a going concern basis, which contemplates continuity of normal activities and 
realisation of assets and settlement of liabilities in the normal course of business. As is often the case with drug development 
companies, the ability of the consolidated entity to continue its development activities as a going concern is dependent upon it 
deriving sufficient cash from investors, from licensing and partnering activities, and from other sources of revenue such as grant 
funding. 

41

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The directors have considered the cash flow forecasts and the funding requirements of the business and continue to explore grant 
funding, licensing opportunities and equity investment opportunities in the Company. In particular, the directors have considered 
the impact of COVID-19 on the operations of the Company, and make the following observations:

•  Kazia’s key clinical trials (phase II study of paxalisib in glioblastoma and phase I study of Cantrixil in ovarian cancer) were fully 

recruited prior to the onset of restrictions associated with COVID-19 in the United States and Australia;

•  The GBM AGILE study, which is planned to serve as a pivotal study for paxalisib in glioblastoma, remains on track, and 

initiation of recruitment continues to be expected in 2H CY2020;

• 

In general, clinical research in advanced cancer is relatively protected from pandemic disruption due to the ongoing and 
time-critical need for patient care in specialised facilities that cannot easily be repurposed;

•  The Company is pre-revenue, and so changes in customer behaviour over the next several years due to public health 

restrictions and reduced economic activity have little to no impact on its finances;

•  The Company was able to secure funding of approximately $9million at the height of the initial wave of COVID-19, with 

additional demand from institutional investors at that time, which could not be satisfied within the Company’s placement 
capacity;

•  The directors do not foresee any other impacts on the Company’s ability to raise additional funding as a result of COVID-19.

The directors are confident that the abovementioned strategies are appropriate to generate sufficient funding to allow the 
consolidated entity to continue as a going concern.

Accordingly the directors have prepared the financial statements on a going concern basis. Should the above assumptions 
not prove to be appropriate, there is material uncertainty whether the consolidated entity will continue as a going concern and 
therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in 
these financial statements.

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and 
Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for 
for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by 
the International Accounting Standards Board (‘IASB’). 

The financial statements have been prepared on an accruals basis and under the historical cost conventions, except for listed 
equity investments which are carried at fair value. 

Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management 
to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas involving a higher 
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are 
disclosed in note 3.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. 
Supplementary information about the parent entity is disclosed in note 29. 

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Kazia Therapeutics Limited 
(‘company’ or ‘parent entity’) as at 30 June 2020 and the results of all subsidiaries for the year then ended. Kazia Therapeutics 
Limited and its subsidiaries together are referred to in these financial statements as the ‘consolidated entity’. 

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when 
the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to 
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on 
which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. 

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are 
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset 
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies 
adopted by the consolidated entity. 

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, 
without the loss of control, is accounted for as an equity transaction, where the difference is between the consideration 
transferred and the book value.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and 
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The 
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together 
with any gain or loss in profit or loss. 

Operating segments

Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as 
the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible for the allocation of 
resources to operating segments and assessing their performance. The CODM is considered to be the Board of Directors.

42

KAZIA THERAPEUTICS LIMITEDNOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Foreign currency translation

The financial statements are presented in Australian dollars, which is the consolidated entity’s functional and presentation 
currency.

Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at 
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or 
loss. 

Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting 
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, 
which approximate the rate at the date of the transaction, for the period. All resulting foreign exchange differences are recognised 
in other comprehensive income through the foreign currency reserve in equity. 

The foreign currency reserve is recognised in profit or loss when the foreign operation is disposed of.

Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation 
shall be recognised initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net 
investment.

Financial Instruments

Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the 
financial instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value 
through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial 
liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the 
financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is 
derecognised when it is extinguished, discharged, cancelled or expires. 

Classification and initial measurement of financial assets 
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction 
price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where 
applicable). 

Subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition: 

• 

• 

financial assets at amortised cost 

financial assets at fair value through profit or loss (FVPL) 

Classifications are determined by both: 

• 

• 

the entity’s business model for managing the financial asset 

the contractual cash flow characteristics of the financial assets 

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, 
finance income or other financial items, except for impairment of trade receivables which is presented within other expenses. 

Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL): 

• 

• 

they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows 

the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the 
principal amount outstanding 

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where 
the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this 
category of financial instruments. 

Financial assets at fair value through profit or loss (FVPL)
Financial assets that are held within a business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair 
value through profit and loss. Further, irrespective of business model, financial assets whose contractual cash flows are not solely 
payments of principal and interest are accounted for at FVPL. The Group’s investments in equity instruments and derivatives fall 
under this category.

Impairment of financial assets
AASB 9’s new impairment model uses more forward looking information to recognize expected credit losses - the ‘expected 
credit losses (ECL) model’. The application of the new impairment model depends on whether there has been a significant 
increase in credit risk. The Group considers a broader range of information when assessing credit risk and measuring expected 
credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected 
collectability of the future cash flows of the instrument. 

43

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In applying this forward-looking approach, a distinction is made between:

• 

• 

financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk 
(‘Stage 1’) and

financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not 
low (‘Stage 2’).

‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12-month expected 
credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second category. 
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected 
life of the financial instrument. 

Classification and measurement of financial liabilities
The Group’s financial liabilities comprise trade and other payables. Financial liabilities are initially measured at fair value, and, 
where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or 
loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method.

All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included 
within finance costs or finance income. 

Revenue from contracts with customers

The Group does not earn revenue from contracts with customers.

Finance Income
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the 
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, 
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net 
carrying amount of the financial asset. 

Grant income
The R&D Tax Incentive is a government program which helps to offset some of the incurred costs of R&D. Eligible expenditure 
incurred under the scheme in a financial year attracts an additional 43.5% tax deduction, and for a group earning income of less 
than $20 million, the cash value of the additional deduction is remitted to the taxpayer. In accordance with AASB 120, as the 
compensation relates to expenses already incurred, it is recognised in profit or loss of the period in which it becomes receivable. 
Accordingly the group accounts for the R&D Tax Incentive in the same year as the expenses to which it relates.

Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established. 

Income tax

The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable 
income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary 
differences, unused tax losses and the adjustment recognised for prior periods, where applicable. 

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are 
recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: 

•  When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a 

transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor 
taxable profits; or

•  When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing 
of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. 

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future 
taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets 
recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying 
amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there 
are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against 
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either 
the same taxable entity or different taxable entities which intend to settle simultaneously.

Kazia Therapeutics Limited (the ‘parent entity’) and its wholly-owned Australian controlled entities have formed an income 
tax consolidated group under the tax consolidation regime. Kazia Therapeutics Limited as the parent entity discloses all of 
the deferred tax assets of the tax consolidated group in relation to tax losses carried forward (after elimination of inter-group 
transactions). The tax consolidated group has applied the ‘separate taxpayer in the group’ allocation approach in determining the 
appropriate amount of taxes to allocate to members of the tax consolidated group. 

As the tax consolidation group continues to generate tax losses there has been no reason for the company to enter a tax funding 
agreement with members of the tax consolidation group. 

44

KAZIA THERAPEUTICS LIMITEDNOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Interpretation 23 Uncertain tax positions

Interpretation 23 clarified the application of the recognition and measurement criteria in AASB 112 Income Taxes (AASB 112) 
where there is uncertainty over income tax treatments and requires an assessment of each uncertain tax position as to whether 
it is probable that a taxation authority will accept the position. Where it is not probable, the effect of the uncertainty is reflected 
in determining the relevant taxable profit or loss, tax bases, unused tax losses and unused tax credits or tax rates. The amount 
is determined as either the single most likely amount or the sum of the probability weighted amounts in a range of possible 
outcomes, whichever better predicts the resolution of the uncertainty. Judgments are reassessed as and when new facts and 
circumstances are presented. 

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification. 

An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating cycle; it is held 
primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash 
or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting 
period. All other assets are classified as non-current. 

A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it 
is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the 
liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. 

Deferred tax assets and liabilities are always classified as non-current. 

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid 
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are 
subject to an insignificant risk of changes in value. 

Research and development

Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised 
only when technical feasibility studies identify that the project will deliver future economic benefits and these benefits can be 
measured reliably. 

Leases

Under AASB 16, leases are accounted for as follows: 

•  Right-of-use assets and lease liabilities are recognised in the consolidated statement of financial position, initially measured at 

the present value of future lease payments;

•  Depreciation on right-of-use assets and interest on lease liabilities are recognised in the consolidated statement of profit or 

loss; and

•  The total amount of cash paid under lease arrangements is separated into a principal portion (presented within financing 

activities) and interest (presented within operating activities) in the consolidated cash flow statement.

Lease incentives under AASB 16 are recognised as part of the measurement of right-of-use assets and lease liabilities.

Under AASB 16, right-of-use assets are tested for impairment in accordance with AASB 136 Impairment of Assets. This replaces 
the previous requirement to recognise a provision for onerous lease contracts.

For short-term leases (lease term of 12 months or less) and leases of low-value assets, the consolidated entity has opted to 
recognise a lease expense on a straight-line basis as permitted by AASB 16. This expense is presented within other expenses in 
the consolidated statement of profit or loss.

Intangible assets

Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the 
date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not 
amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured 
at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of 
intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. 
The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption 
or useful life are accounted for prospectively by changing the amortisation method or period. 

Patents and trademarks
Significant costs associated with patents and intellectual property are deferred and amortised on a straight-line basis over the 
period of their expected benefit, being their finite useful life of 5 years. 

Licensing agreement for paxalisib (formerly GDC-0084)
The Licensing Agreement asset was initially brought to account at fair value, and is being amortised on a straight-line basis over 
the period of its expected benefit, being the remaining life of the patent, which was15 years from the date of acquisition. 

45

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Impairment of non-financial assets

Non-financial assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate 
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying 
amount exceeds its recoverable amount. 

Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present 
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating 
unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating 
unit. 

Compound financial instruments

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost 
using the effective interest rate method, whereas the equity component is not remeasured. Interest, gains and losses relating to 
the financial liability are recognised in profit or loss. On conversion, the financial liability is reclassified to equity; no gain or loss is 
recognised on conversion. 

Provisions

Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, 
it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount 
of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present 
obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of 
money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision 
resulting from the passage of time is recognised as a finance cost. 

Employee benefits

Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled 
within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. 

Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date is measured 
as the present value of expected future payments to be made in respect of services provided by employees up to the reporting 
date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of 
employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date 
on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash 
outflows. 

Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. 

Share-based payments
Equity-settled share-based compensation benefits are provided to employees under the terms of the Employee Share Option 
Plan (‘ESOP’) and consultants as compensation for services performed.

Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the 
rendering of services.

The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using 
the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, 
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free 
interest rate for the term of the option, together with non-vesting conditions that do not determine whether the consolidated 
entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting 
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of 
the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss 
for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

The cumulative charge to profit or loss until settlement of the liability is calculated as follows:

•  during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the 

expired portion of the vesting period.

• 

from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting 
date.

Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are 
considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An 
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the 
share-based compensation benefit as at the date of modification.

46

KAZIA THERAPEUTICS LIMITEDNOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is 
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied 
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award 
is forfeited.

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense 
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is 
treated as if they were a modification.

Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the 
period in which they are incurred, including interest on short-term and long-term borrowings.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value 
is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market 
participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the 
absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming 
they act in their economic best interest. For non-financial assets, the fair value measurement is based on its highest and best use. 
Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, 
are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance 
of the inputs used in making the measurements. Classifications are reviewed each reporting date and transfers between levels are 
determined based on a reassessment of the lowest level input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not 
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and 
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is 
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, 
with external sources of data.

Issued capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options, including share based payments relating to the issue 
of shares are, shown in equity as a deduction, net of tax, from the proceeds.

Earnings per share

Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Kazia Therapeutics Limited, excluding 
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during 
the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after 
income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average 
number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Goods and Services Tax (‘GST’) and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable 
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable 
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which 
are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have 
not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020. The consolidated entity’s 
assessment of the impact of these new or amended Accounting Standards and Interpretations is that none are deemed to have a 
material impact on the entity.

47

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect 
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to 
assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on 
historical experience and on other various factors, including expectations of future events, management believes to be reasonable 
under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The 
judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of 
assets and liabilities (refer to the respective notes) within the next financial year are discussed as follows:

Research and development expenses 

The Directors do not consider the development programs to be sufficiently advanced to reliably determine the economic benefits 
and technical feasibility to justify capitalisation of development costs. These costs have been recognised as an expense when 
incurred.

Research and development expenses relate primarily to the cost of conducting human clinical and pre-clinical trials. Clinical 
development costs are a significant component of research and development expenses. Estimates have been used in determining 
the expense liability under certain clinical trial contracts where services have been performed but not yet invoiced. Generally the 
costs, and therefore estimates, associated with clinical trial contracts are based on the number of patients, drug administration 
cycles, the type of treatment and the outcome being measured. The length of time before actual amounts can be determined will 
vary depending on length of the patient cycles and the timing of the invoices by the clinical trial partners. 

Clinical trial expenses

Estimates have been used in determining the expense liability under certain clinical trial contracts being performed but not yet 
invoiced. 

Share-based payment transactions

The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the 
equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes option pricing 
model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and 
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and 
liabilities within the next annual reporting period but may impact profit or loss and equity.

Fair value measurement hierarchy

The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based 
on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) 
in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other 
than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: 
Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and 
therefore which category the asset or liability is placed in can be subjective.

Research and development tax rebate

The R&D Tax Incentive is recognised when a reliable estimate of the amounts receivable can be made. For the year ended 
30 June 2020 the group has estimated the rebate which will be received in early 2021 and has accrued that amount as income in 
the statement of profit or loss and other comprehensive income.

Impairment of non-financial assets other than goodwill and other indefinite life intangible assets

The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets 
at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may lead to 
impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. 

Recovery of deferred tax assets

Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable 
that future taxable amounts will be available to utilise those temporary differences and losses. There have been no deferred tax 
assets recognised in the financial statements.

Business combinations

The consolidated entity entered into a business combination in a prior year. The transaction was complex, involving the licensing 
of an asset from one party and the purchase of a company from another party. Significant judgement was required in determining 
that the transaction was a business combination and in relation to the identification and valuation of assets and liabilities 
acquired.

Contingent consideration

The fair value of contingent consideration is dependent on the key assumptions including probability of milestones occurring, 
timing of settlement and discount rates.

48

KAZIA THERAPEUTICS LIMITEDNOTE 4. OPERATING SEGMENTS

Identification of reportable operating segments

The consolidated entity’s operating segment is based on the internal reports that are reviewed and used by the Board of 
Directors (being the Chief Operating Decision Makers (‘CODM’)) in assessing performance and in determining the allocation of 
resources. 

The consolidated entity operates in the pharmaceutical research and development business. There are no operating segments for 
which discrete financial information exists. 

The information reported to the CODM, on at least a quarterly basis, is the consolidated results as shown in the statement of 
profit or loss and other comprehensive income and statement of financial position. 

Major customers
During the current and prior financial year there were no major customers. 

NOTE 5. OTHER INCOME

Net foreign exchange gain

Payroll tax rebate

Subsidies and grants

Reimbursement of expenses

Research and development rebate

Other income

NOTE 6. EXPENSES

Loss before income tax includes the following specific expenses:

Depreciation

Property, plant and equipment 

Amortisation

GDC licensing agreement

Total depreciation and amortisation

Net foreign exchange loss

Net foreign exchange loss

Leases

Expense relating to short term leases

Superannuation expense

Defined contribution superannuation expense

Employee benefits expense excluding superannuation

Employee benefits expense excluding superannuation

Other expenses

Revaluation of contingent consideration

Consolidated

2020
$

4,631 

2,259 

20,000 

- 

2019
$

- 

318 

9,413 

24,614 

968,110 

1,431,083 

995,000 

1,465,428 

Consolidated

2020
$

2019
$

- 

103 

1,084,344 

1,084,347 

1,084,344 

1,084,450 

- 

17,835

107,929 

78,521 

139,697 

128,271 

1,525,599

1,395,831

474,557 

62,729 

49

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 7. INCOME TAX BENEFIT

Numerical reconciliation of income tax benefit and tax at the statutory rate

Loss before income tax benefit

Tax at the statutory tax rate of 27.5%

Tax effect amounts which are not deductible/(taxable) in calculating taxable income:

Share-based payments

Gain/loss on revaluation of contingent consideration

Research and Development claim

Tax losses and timing differences not recognised

Income tax benefit

Consolidated

2020
$

2019
$

(12,765,661)

(10,568,459)

(3,510,557)

(2,906,326)

72,079 

130,503 

279,675 

67,756 

17,250 

393,548 

(3,028,300)

(2,427,772)

2,730,105 

(298,195)

2,129,577 

(298,195)

Consolidated

2020
$

2019
$

Tax losses not recognised

Unused tax losses for which no deferred tax asset has been recognised-Australia

67,429,803 

57,049,913 

Potential tax benefit @ 27.5%

Unused tax losses for which no deferred tax asset has been recognised-US

Potential tax benefit at statutory tax rates @ 21%-US

18,543,196 

15,688,726 

1,570,207 

2,365,967 

329,743 

496,853 

NOTE 8. CURRENT ASSETS - CASH AND CASH EQUIVALENTS

Cash at bank and on hand 

Short-term deposits 

NOTE 9. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES

Trade receivables

R&D tax rebate receivable

Less: Allowance for expected credit losses

Other receivables

Deposits held

Less: Provision for impairment of deposits held

Consolidated

2020
$

2019
$

1,264,044 

833,868 

7,500,000 

4,600,000 

8,764,044 

5,433,868 

Consolidated

2020
$

439 

2019
$

16,767 

1,017,278 

1,439,825 

- 

(16,767)

1,017,717 

1,439,825 

177,125 

566,508 

(409,098)

112,017 

563,982 

(405,121)

1,352,252

1,710,703

Deposits held included a guarantee to the value of €250,000 ($409,098) for the “APO Trend” case. Please refer to note 26 for 
further information on this matter.

Allowance for expected credit losses

The consolidated entity has recognised a loss of nil (2019: $16,767) in profit or loss in respect of impairment of receivables 
(excluding ‘deposits held’) for the year ended 30 June 2020.

50

KAZIA THERAPEUTICS LIMITEDNOTE 10. CURRENT ASSETS - OTHER

Prepayments

NOTE 11. NON-CURRENT ASSETS - FINANCIAL ASSETS

Listed ordinary shares – FVTPL

Unlisted shares and options – FVTPL

Refer to note 23 for further information on fair value measurement.

NOTE 12. NON-CURRENT ASSETS - INTANGIBLES

Patents and intellectual property – at cost 

Less: Accumulated amortisation

Licensing agreement – at acquired fair value

Less: Accumulated amortisation

Consolidated

2020
$

2019
$

537,305 

369,604 

Consolidated

2020
$

- 

- 

- 

2019
$

25,014 

142,800 

167,814

Consolidated

2020
$

2019
$

2,850,517 

2,850,517 

(2,850,517)

(2,850,517)

-  

-  

16,407,788 

16,407,788 

(3,997,649)

(2,913,305)

12,410,139 

13,494,483 

12,410,139

13,494,483

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated

Balance at 1 July 2018

Amortisation expense

Balance at 30 June 2019

Amortisation expense

Balance at 30 June 2020

Paxalisib 
licensing 
agreement
$

Total
$

14,578,830

14,578,830

(1,084,347)

(1,084,347)

13,494,483

13,494,483

(1,084,344)

(1,084,344)

12,410,139

12,410,139

NOTE 13. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES

Trade payables

Accrued payables

Other current liability

Refer to note 22 for further information on financial instruments.

Consolidated

2020
$

2019
$

1,693,632 

1,049,944 

1,795,301 

-  

713,517 

479 

3,488,933

1,763,940

51

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 14. CURRENT LIABILITIES - PROVISIONS

Employee benefits

NOTE 15. CURRENT LIABILITIES - CONTINGENT CONSIDERATION

Contingent consideration (see note 17)

NOTE 16. NON-CURRENT LIABILITIES - DEFERRED TAX

Deferred tax liability associated with Licensing Agreement

Amount expected to be settled within 12 months

Amount expected to be settled after more than 12 months

Consolidated

2020
$

2019
$

191,451 

136,352

Consolidated

2020
$

1,387,089 

2019
$

-  

Consolidated

2020
$

2019
$

3,412,788

3,710,983

298,195 

298,195 

3,114,593 

3,412,788 

3,412,788

3,710,983

NOTE 17. NON-CURRENT LIABILITIES - CONTINGENT CONSIDERATION

Contingent consideration

Consolidated

2020
$

2019
$

457,899

1,370,431

During the 2017 financial year, the consolidated entity acquired 100% of the issued shares in Glioblast Pty Ltd, a privately-held, 
neuro-oncology-focused Australian biotechnology company. On the same day, Kazia entered into a worldwide licensing 
agreement with Genentech to develop and commercialise GDC-0084, now known as paxalisib.

The Glioblast acquisition contains four contingent milestone payments, the first two milestone payments are to be settled with 
Kazia shares, and the third and fourth milestone payments are to be settled with either cash or Kazia shares at the discretion of 
Kazia. Milestone 1 has now been paid out, and Milestone 3 has lapsed.

The Genentech Agreement comprises of one milestone payment payable on the first commercial licensed product sale. 

The range of outcomes of contingent consideration are summarised below:

Milestone - High/Low outcomes

Milestone 2

Milestone 4

Milestone 5

High

Low

1,250,000 

1,250,000 

4,199,000 

3,400,000 

1,394,000 

1,394,000 

6,843,000

6,044,000

Each milestone payment is probability weighted for valuation purposes. The milestone payments are discounted to present value, 
using a discount rate of 35% per annum, if they are expected to be achieved more than 12 months after the valuation date. The 
contingent consideration was revalued at 30 June 2020 to take into account revised estimated probabilities and timelines of 
certain milestones being achieved, and a portion of the discount has unwound with the resultant Loss on contingent consideration 
being recognised in profit and loss.

Kazia is also required to pay royalties to Genentech in relation to net sales. These payments are related to future financial 
performance, and are not considered as part of the consideration in relation to the Genentech Agreement.

52

KAZIA THERAPEUTICS LIMITEDNOTE 18. EQUITY - CONTRIBUTED EQUITY

Consolidated

2020
Shares

2019
Shares

2020
$

2019
$

Ordinary shares - fully paid

94,598,369

62,166,673

48,781,214

36,641,519

Movements in ordinary share capital

Details

Balance

Date

Shares

Issue price

$

1 July 2018

48,409,621

31,575,824

Share placement

24 October 2018

8,900,001

$0.380 

3,382,000

Milestone 1 shares issued in connection with  
purchase of Glioblast Pty Limited (GDC-0084)

9 November 2018

2,820,824

$0.440 

1,250,000

Issued under Share Purchase Plan

23 November 2018

2,036,227

Share issue transaction costs

-

$0.380 

$0.000

773,760

(340,065)

36,641,519

30 June 2019

62,166,673

1 November 2019

10,000,000

$0.400 

4,000,000

16 April 2020

11 May 2020

18,041,667

4,390,010

19

-

$0.400 

$0.400 

$4.000 

$0.000

30 June 2020

94,598,369

7,216,667

1,756,004

76

(833,052)

48,781,214

Balance

Share placement

Share placement

Issued under the Share Purchase Plan

Issued on conversion of options

Share issue transaction costs

Balance

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to 
the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not 
have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share 
shall have one vote.

Share buy-back

There is no current on-market share buy-back.

Capital risk management

The consolidated entity’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it 
can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce 
the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as 
total borrowings less cash and cash equivalents.

The capital structure of the consolidated entity consists of cash and cash equivalents and equity attributable to equity holders. 
The overall strategy of the consolidated entity is to continue its drug development programs, which depends on raising sufficient 
funds, through a variety of sources including issuing of additional share capital, as may be required from time to time.

The capital risk management policy remains unchanged from the prior year.

NOTE 19. EQUITY - OTHER CONTRIBUTED EQUITY

Convertible note - Triaxial

Consolidated

2020
$

2019
$

464,000 

464,000

On 4 December 2014, the consolidated entity and the convertible note holder (‘Triaxial’) signed a Convertible Note Deed Poll 
(‘Deed’) which superseded the precedent Loan Agreement between Triaxial shareholders and the consolidated entity. The 
Deed extinguishes the liability created by the Loan Agreement and provides that the Convertible Notes will convert into a 
pre-determined number of ordinary shares on the achievement of defined milestones established in the schedule of the Deed. 
Accordingly the convertible note has been reclassified as an equity instrument rather than debt instrument.

53

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 19. EQUITY - OTHER CONTRIBUTED EQUITY (CONTINUED)

During the financial year ended 30 June 2017, the Company reached two milestones triggering the conversion of a portion of its 
convertible note as follows;

•  on 11 August 2016 the Company announced the submission of an IND application. On 10 September 2016, the Company 
received a letter from the FDA advising the study may proceed triggering conversion of 20,000,000 ordinary shares.

•  on 31 October 2016, the Company announced it had licensed a Phase II ready molecule triggering the conversion of 

16,000,000 ordinary shares.

During the financial year ended 30 June 2018, a portion of the convertible notes was extinguished.  

The remaining portion of the convertible note will be exercised at the holders’ discretion on completion of Phase II clinical trial or 
achieving Breakthrough Designation, and would convert to 1,856,000 ordinary shares if converted. Completion will be deemed to 
occur upon the receipt by the consolidated entity of a signed study report or notification of the designation. There is a possibility 
for an early conversion of the convertible notes if a third party acquires more than 50% of the issued capital of the consolidated 
entity.

NOTE 20. EQUITY - RESERVES

Foreign currency translation reserve

The reserve is used to recognise exchange differences arising from translation of the financial statements of foreign operations to 
Australian dollars.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and executive directors as part of their 
remuneration, and other parties as part of their compensation for services.

NOTE 21. EQUITY - DIVIDENDS

Dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Franking credits

There were no franking credits available at the reporting date.

NOTE 22. FINANCIAL INSTRUMENTS

Financial risk management objectives

The consolidated entity’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The 
consolidated entity uses different methods to measure and manage the different types of risks to which it is exposed. These 
methods include monitoring the levels of exposure to interest rates and foreign exchange, ageing analysis and monitoring of 
specific credit allowances to manage credit risk, and, rolling cash flow forecasts to manage liquidity risk.

Market risk

Foreign currency risk
The consolidated entity operates internationally and is exposed to foreign exchange risk arising from various currency exposures, 
primarily with respect to the US dollars (‘USD’). Foreign exchange risk arises from future transactions and recognised assets and 
liabilities denominated in a currency that is not the entity’s functional currency and net investments in foreign operations.

As of 30 June 2020, the consolidated entity did not hold derivative financial instruments in managing its foreign currency, 
however, the consolidated entity may from time to time enter into hedging arrangements where circumstances are deemed 
appropriate. The consolidated entity used natural hedging to reduce the foreign currency risk, which involved processing USD 
payments from cash held in USD. Foreign subsidiaries with a functional currency of Australian Dollars (‘AUD’) have exposure to 
the local currency of these subsidiaries and any other currency these subsidiaries trade in.

The carrying amount of the consolidated entity’s foreign currency denominated financial assets and financial liabilities at the 
reporting date was as follows:

Consolidated

US dollars

Euros

Assets

Liabilities

2020
$

2019
$

2020
$

2019
$

272,450

30,720

2,196,281

1,046,504

-

-

-

731

272,450

30,720

2,196,281

1,047,235

The consolidated entity had net liabilities denominated in foreign currencies of $2,448,320 as at 30 June 2020 (2019: net 
liabilities $1,016,515).

54

KAZIA THERAPEUTICS LIMITEDNOTE 22. FINANCIAL INSTRUMENTS (CONTINUED)

If the AUD had strengthened against the USD by 10% (2019: 10%) then this would have had the following impact: 

Consolidated - 2020

% change

Effect on 
profit before 
tax

Effect on 
equity

% change

AUD strengthened

AUD weakened
Effect on 
profit before 
tax

Effect on 
equity

US dollars

10%

244,832

244,832

(10%)

(244,832)

(244,832)

Consolidated - 2019

% change

Effect on 
profit before 
tax

Effect on 
equity

% change

AUD strengthened

AUD weakened
Effect on 
profit before 
tax

Effect on 
equity

US dollars

Euros

Price risk

10% 

10% 

101,578

101,578

73

73

101,651

101,651

(10%)

(10%)

(101,578)

(101,578)

(73)

(73)

(101,651)

(101,651)

The consolidated entity is not exposed to any significant price risk.

Interest rate risk

The consolidated entity’s exposure to market interest rates relate primarily to the investments of cash balances.

The consolidated entity has cash reserves held primarily in Australian dollars and United States dollars and places funds on 
deposit with financial institutions for periods generally not exceeding three months.

As at the reporting date, the consolidated entity had the following variable interest rate balances:

Consolidated

Cash at bank and in hand

Short term deposits

Net exposure to cash flow interest rate risk

2020

2019

Weighted 
average 
interest rate
%

0.04% 

0.95% 

Weighted 
average 
interest rate
%

0.03% 

1.88% 

Balance
$

1,264,044

7,500,000

8,764,044

Balance
$

833,868

4,600,000

5,433,868

The consolidated entity has cash and cash equivalents totalling $8,764,044 (2019: $5,433,868). An official increase/decrease in 
interest rates of 100 basis points (2019: 100 basis points) would have a favourable/adverse effect on profit before tax and equity 
of $87,640 (2019: $54,337) per annum. The percentage change is based on the expected volatility of interest rates using market 
data and analysts forecasts.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the 
consolidated entity. The entity is not exposed to significant credit risk on receivables.

The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables 
through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative 
across all customers of the consolidated entity based on recent sales experience, historical collection rates and forward-looking 
information that is available.

The consolidated entity places its cash deposits with high credit quality financial institutions and by policy, limits the amount 
of credit exposure to any single counter-party. The consolidated entity is averse to principal loss and ensures the safety and 
preservation of its invested funds by limiting default risk, market risk, and reinvestment risk. The consolidated entity mitigates 
default risk by constantly positioning its portfolio to respond appropriately to a significant reduction in a credit rating of any 
financial institution.

Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the 
failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a 
period greater than 1 year.

There are no significant concentrations of credit risk within the consolidated entity. The credit risk on liquid funds is limited as the 
counter parties are banks with high credit ratings.

Credit risk is managed by limiting the amount of credit exposure to any single counter-party for cash deposits.

55

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 22. FINANCIAL INSTRUMENTS (CONTINUED)

Liquidity risk

The consolidated entity manages liquidity risk by maintaining adequate cash reserves and by continuously monitoring actual and 
forecast cash flows and matching the maturity profiles of financial assets and liabilities. In particular, contingent consideration 
may be satisfied either by payment of cash or by issue of shares, at the discretion of the entity.

Remaining contractual maturities
The following tables detail the consolidated entity’s remaining contractual maturity for its financial instrument liabilities. The 
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which 
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining 
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.

Weighted 
average 
interest  
rate 
%

1 year or less 
$

Between 
 1 and 2  
years 
$

Between  
2 and 5  
years 
$

Over 5 
years 
$

Remaining 
contractual 
maturities 
$

-

-

-

1,693,632

1,795,301

4,199,000

7,687,933

-

-

-

-

-

-

2,644,000

2,644,000

-

-

-

-

1,693,632

1,795,301

6,843,000

10,331,933

Weighted 
average 
interest  

rate

%

1 year or less 
$

Between  
1 and 2  
years 
$

Between  
2 and 5  
years 
$

Over 5  
years 
$

Remaining 
contractual 
maturities 
$

-

-

-

1,049,944

713,517

-

1,763,461

-

-

-

-

-

-

-

-

1,049,944

713,517

5,449,000

1,394,000

6,843,000

5,449,000

1,394,000

8,606,461

Consolidated - 2020

Non-derivatives

Trade payables

Accrued payables 

Contingent consideration

Total non-derivatives

Consolidated - 2019

Non-derivatives

Trade payables

Accrued payables 

Contingent consideration

Total non-derivatives

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.

56

KAZIA THERAPEUTICS LIMITEDNOTE 23. FAIR VALUE MEASUREMENT

Fair value hierarchy

The following tables detail the consolidated entity’s assets and liabilities, measured or disclosed at fair value, using a three level 
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the 
measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or 
indirectly

Level 3: Unobservable inputs for the asset or liability

Consolidated - 2020

Liabilities

Contingent consideration 

Total liabilities

Consolidated - 2019

Assets

Ordinary shares - listed

Unlisted options

Total assets

Liabilities

Contingent consideration 

Total liabilities

Level 1
$

-

-

Level 1
$

25,014

-

25,014

-

-

Level 2
$

Level 3
$

Total
$

-

-

1,844,988

1,844,988

1,844,988

1,844,988

Level 2
$

-

-

-

-

-

Level 3
$

-

142,800

142,800

1,370,431

1,370,431

Total
$

25,014

142,800

167,814

1,370,431

1,370,431

There were no transfers between levels during the financial year.

The fair value of contingent consideration related to the acquisition of Glioblast Pty Ltd and the licence agreement is estimated 
by probability-weighting the expected future cash outflows, adjusting for risk and discounting. 

The effects on the fair value of risk and uncertainty in the future cash flows are dealt with by adjusting the estimated cash flows 
rather than adjusting the discount rate. The estimated cashflows were adjusted based on the directors’ assessment of achieving 
contracted milestones as disclosed in Note 17. The probabilities used fell in the range of 35% to 55% and were informed by 
generally accepted industry probabilities of drugs achieving certain milestones in their progression towards registration.

NOTE 24. KEY MANAGEMENT PERSONNEL DISCLOSURES

Compensation

The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is 
set out below:

Short-term employee benefits

Post-employment benefits

Share-based payments

Consolidated

2020
$

2019
$

1,324,345 

1,175,398

96,473 

230,036

84,161

125,010 

1,650,854

1,384,569 

Please refer to note 28 for other transactions with key management personnel and their related parties.

57

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 25. REMUNERATION OF AUDITORS

During the financial year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd, the 
auditor of the company:

Audit services - Grant Thornton Audit Pty Ltd

Audit or review of the financial statements

NOTE 26. CONTINGENT LIABILITIES

Consolidated

2020
$

2019
$

124,250 

119,800 

The consolidated entity is continuing to prosecute its Intellectual Property (‘IP’) rights against an Austrian company, APOtrend. At 
30 June 2018 the Austrian Supreme Court had rendered a final decision on the patent infringement. As a result, Kazia is entitled 
to make a claim against APOtrend in relation to two of the three products which were the subject of the claim, while for the third 
product, Kazia’s claim was denied. In respect of this third product, APOtrend is entitled to claim compensation for damages 
caused by a preliminary injunction, and has three years from the date of the Austrian Supreme Court finding to do so. At the date 
of this report, no claim has been made by either party. Kazia is entitled to access APOtrend’s books to calculate a license fee/
other payment claims against APOtrend. Kazia is currently trying to enforce this right in court. 

 The consolidated entity has provided a guarantee to the value of €250,000 ($409,098) with the court to provide a security for 
potential damage claims raised by APOtrend (which is not limited to this amount, however). As at 30 June 2020, the receivable 
balance continues to be fully impaired on the basis that it is unlikely to be recovered.

NOTE 27. COMMITMENTS

Lease commitments comprise contracted amounts for leases of premises. The agreement has a duration less than 12 months 
from financial year end and committed amounts are not material.

NOTE 28. RELATED PARTY TRANSACTIONS

Parent entity

Kazia Therapeutics Limited is the parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 30.

Key management personnel

Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the directors’ 
report.

Transactions with related parties

There was no other transaction with KMP and their related parties.

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties

There were no loans to or from related parties at the current and previous reporting date.

Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

58

KAZIA THERAPEUTICS LIMITEDNOTE 29. PARENT ENTITY INFORMATION

Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Loss after income tax

Total comprehensive income 

Statement of financial position

Total current assets

Total assets

Total current liabilities

Total liabilities

Equity

Contributed equity

Other contributed equity

Reserves

Accumulated losses

Total equity

Parent

2020
$

(11,064,061)

(11,064,061)

2019
$

(7,198,302)

(7,198,302)

Parent

2020
$

9,702,674 

22,112,813 

1,521,946 

5,392,632 

2019
$

7,015,002 

20,677,299 

213,444 

5,294,858 

48,781,214 

36,641,519 

464,000 

1,521,111 

464,000 

2,489,121 

(34,046,144)

(24,212,199)

16,720,181 

15,382,441 

Reserves comprise Share Based Payments Reserve.

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2020 and 30 June 2019, except as detailed in note 26.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment at as 30 June 2020 and 30 June 2019.

Significant accounting policies

The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except for 
the following:

• 

Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.

•  Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator 

of an impairment of the investment.

NOTE 30. INTERESTS IN SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with 
the accounting policy described in note 2:

Name

Kazia Laboratories Pty Ltd

Kazia Research Pty Ltd

Kazia Therapeutics Inc.

Glioblast Pty Ltd

Principal place of business /
Country of incorporation

Australia

Australia

United States of America

Australia

Ownership interest

2020
%

100.00% 

100.00% 

100.00% 

100.00% 

2019
%

100.00% 

100.00% 

100.00% 

100.00% 

59

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 31. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH USED IN 
OPERATING ACTIVITIES

Consolidated

2020
$

2019
$

Loss after income tax benefit for the year

(12,467,466)

(10,270,264)

Adjustments for:

Depreciation and amortisation

Impairment of property, plant and equipment

Net fair value loss on financial assets

Share-based payments

loss on contingent consideration

Change in operating assets and liabilities:

Decrease in trade and other receivables

Increase in accrued revenue

Decrease/(increase) in prepayments

Increase/(decrease) in trade and other payables

Decrease in deferred tax liabilities

Increase/(decrease) in other provisions

Net cash used in operating activities

NOTE 32. EARNINGS PER SHARE

1,084,344 

1,084,450 

- 

167,814 

262,105 

474,557 

358,452 

- 

(167,701)

1,721,472 

(298,195)

55,099 

1,076 

1,808,511 

246,387 

62,729 

824,776 

(138,188)

398,350 

(408,867)

(298,195)

(24,975)

(8,809,519)

(6,714,210)

Consolidated

2020
$

2019
$

Loss after income tax attributable to the owners of Kazia Therapeutics Limited

(12,467,466)

(10,270,264)

Weighted average number of ordinary shares used in calculating basic earnings  
per share

Weighted average number of ordinary shares used in calculating diluted earnings  
per share

Basic earnings per share

Diluted earnings per share

Number

Number

73,053,514

57,503,555

73,053,514

57,503,555

Cents

(17.07)

(17.07)

Cents

(17.86)

(17.86)

1,865,000 unlisted convertible notes with a face value of $464,000 and 2,775,167 unlisted options have been excluded from the 
above calculations as they were anti-dilutive.

NOTE 33. SHARE-BASED PAYMENTS

The options in the first three tranches in the table below were issued as consideration for services rendered in relation to capital 
raising conducted during a previous year by the consolidated entity, and have now expired.

The options in the remaining tranches in the table below have been issued to employees under the ESOP. In total, $262,105 (2019: 
$246,387) of employee remuneration expense (all of which related to equity-settled share-based payment transactions) has been 
included in profit or loss during the year and credited to share-based payment reserve. 

Options in tranches 5-7 and 15 represent a modification which occurred during the year. The options in tranches 5-7 were 
cancelled and the options in tranche 15 issued in their stead. These options were issued to the CEO and Managing Director, 
and the modification was approved by the shareholders on 13 November 2019. The option pricing model used to determine the 
incremental fair value was a Black-Scholes option pricing model. The inputs into the valuation model are set out in a table later in 
this note and the assumptions with regard to dividends, volatility and risk-free rate are relevant to the newly issued replacement 
options. The volatility was determined based upon historical volatility. The fair value of the new options granted was $216,000 
and the fair value of the old options was de minimus just prior to the modification. Therefore, the incremental fair value of the 
modification was $216,000. 

60

KAZIA THERAPEUTICS LIMITEDNOTE 33. SHARE-BASED PAYMENTS (CONTINUED)

The terms of the options were agreed by the directors on 4 January 2019, including immediate vesting of 50% of the options, 
with the remaining options to vest in equal portions over the following three years starting 4 January 2020. The options will expire 
on 4 January 2024. Because the options required shareholder approval they were not issued until that approval was granted on 
13 November 2019, however the terms were as agreed on 4 January 2019.

2020

Tranche

Grant date Expiry date

04/03/2015

16/12/2019

04/03/2015

18/12/2019

Exercise 
price

$1.500

$1.500

Balance at 
the start of 
the year

46,647

19,952

24/06/2015

30/06/2020

$4.000 

519,000

16/11/2015

16/11/2020

$2.200 

236,667

18/03/2016

01/02/2021

$1.990 

300,000

18/03/2016

01/02/2021

$1.990 

200,000

18/03/2016

01/02/2021

$2.610 

250,000

05/09/2016

05/09/2021

12/10/2016

17/10/2021

31/10/2016

01/11/2021

21/11/2016

23/11/2021

$1.630 

$1.560 

$1.380 

$1.380 

50,000

62,000

12,500

50,000

07/08/2017

07/08/2022

$0.670 

224,000

05/02/2018 05/02/2023

$0.780 

440,000

04/01/2019

04/01/2024

$0.492 

250,000

13/11/2019

04/01/2024

13/01/2020

13/01/2025

$0.492 

$0.881 

-

-

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Granted

Modified 

Expired

the year

Balance at 

the end of 

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(300,000)

(200,000)

(250,000)

-

-

-

-

-

-

-

1,200,000

250,000

-

(46,647)

(19,952)

(519,000)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

236,667

-

-

-

50,000

62,000

12,500

50,000

224,000

440,000

250,000

1,200,000

250,000

Weighted average exercise price

$1.960 

$0.880 

$2.348 

$3.716 

$0.797 

2,660,766

250,000

450,000

(585,599)

2,775,167

No options were exercised or forfeited during the year.

At the end of the period the following outstanding options were vested and exercisable:

•  Options in tranches 4, 8, 10, 11 and 13 were vested and exercisable 

•  Options in tranche 16 were unvested

•  Options in the other tranches were vested as follows: 9: 75%, 12: 50% 14: 50% and 15: 67%. All were able to be exercised at 

year end.

All remaining options are expected to vest in future periods.

The weighted average remaining contractual life of options outstanding at the 30 June 2020 is 2.78 years.

61

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSNOTE 33. SHARE-BASED PAYMENTS (CONTINUED)

2019

Tranche

Grant date Expiry date

04/03/2015

16/12/2019

04/03/2015

18/12/2019

Exercise 
price

$1.500 

$1.500 

Balance at 
the start of 
the year

46,647

19,952

24/06/2015

30/06/2020

$4.000 

519,000

16/11/2015

16/11/2020

$2.200 

236,667

18/03/2016

01/02/2021

$1.990 

300,000

18/03/2016

01/02/2021

$1.990 

200,000

18/03/2016

01/02/2021

$2.610 

250,000

05/09/2016

05/09/2021

12/10/2016

17/10/2021

31/10/2016

01/11/2021

21/11/2016

23/11/2021

$1.630 

$1.560 

$1.380 

$1.380 

50,000

62,000

12,500

50,000

07/08/2017

07/08/2022

$0.670 

224,000

05/02/2018 05/02/2023

$0.780 

440,000

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Granted

Exercised

Forfeited on 
cessation of 
employment

Balance at 
the end of 
the year

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

46,647

19,952

519,000

236,667

300,000

200,000

250,000

50,000

62,000

12,500

50,000

224,000

440,000

250,000

2,660,766

04/01/2019

04/01/2024

$0.492 

-

250,000

2,410,766

250,000

Weighted average exercise price

$2.120 

$0.490 

$0.000

$0.000

$1.960 

At the end of the period the following options were vested and exercisable:

•  Options from Tranche 1 to Tranche 6, Tranches 8, 10 and 11 were vested and exercisable 

•  Options in Tranches 7 and 14 were unvested 

•  Options from Tranche 9 and 13 were vested and exercisable as to 50% 

•  Options from Tranche 12 were vested and exercisable as to 25% 

All remaining options are expected to vest in future periods. No options have expired during the financial year.

The weighted average remaining contractual life of options outstanding at the 30 June 2019 is 1.43 years.

Employee share options

During the year ended 30 June 2020, 250,000 options have been issued to the employees by the consolidated entity pursuant to 
the Company’s Employee Share Option Plan. 

•  Tranche 16 of 250,000 options vesting equally over 4 years in annual intervals from 13 January 2021

Also during the year, 750,000 options were cancelled and replaced by 1,200,000 new options issued in their place. This has been 
accounted for as a modification of the first series of options, as their cancellation was contingent upon receipt of shareholder 
approval for the issue of the new options. 

Of the new options, which are shown as tranche 15:

•  50% vested immediately

• 

the remaining 50% vest equally over 3 years in annual intervals from 4 January 2020 

An option will only vest if the option holder continues to be a full-time employee with the Company or an Associated Company 
during the vesting period relating to the option. 

Conditions for an option to be exercised: 

•  The option must have vested and a period of 1 year from the date the option was issued must have expired;

•  Option holder must have provided the Company with an Exercise Notice and have paid the Exercise Price for the option. 

•  The Exercise Notice must be for the exercise of at least the Minimum Number of Options; 

•  The Exercise Notice must have been provided to the Company and Exercise Price paid before the expiry of 5 years from the 

date the Option is issued.

Options Valuation

In order to obtain a fair valuation of these options, the following assumptions have been made:

62

KAZIA THERAPEUTICS LIMITEDNOTE 33. SHARE-BASED PAYMENTS (CONTINUED)

The Black Scholes option valuation methodology has been used with the expectation that the majority of these options would be 
exercised towards the end of the option term. Inputs into the Black Scholes model includes the share price at grant date, exercise 
price, volatility, and the risk free rate of a five year Australian Government Bond on grant date.

Risk-free rate and grant date
For all tranches, the risk-free rate of a five-year Australian Government bond on grant date was used. Please refer to the table below for 
details.

Options in Tranches 1 to 16 have various vesting periods and exercising conditions. These options are unlisted as at 30 June 2020.

No dividends are expected to be declared or paid by the consolidated entity during the terms of the options.

The underlying expected volatility was determined by reference to historical data of the Company’s shares over a period of time. 
No special features inherent to the options granted were incorporated into measurement of fair value.

Based on the above assumptions, the table below sets out the valuation for each tranche of options:

Grant date

Expiry date

16/11/2015

16/11/2020

05/09/2016

05/09/2021

12/10/2016

17/10/2021

31/10/2016

01/11/2021

21/11/2016

23/11/2021

07/08/2017

07/08/2022

05/02/2018

05/02/2023

04/01/2019

04/01/2024

13/11/2019

13/11/2024

13/01/2020

13/01/2025

Share 
price at 
Grant Date

$0.140 

$0.105 

$0.098 

$0.090 

$0.092 

$0.430 

$0.500 

$0.340 

$0.410 

$0.620 

NOTE 34. SUBSEQUENT EVENTS

Exercise 

price Volatility (%)

Remaining 
Life (years)

Risk free 
Rate (%)

Fair value 
per option

$2.200 

158.00% 

$1.630 

$1.560 

$1.380 

$1.380 

$0.670 

$0.780 

$0.493 

$0.493 

$0.881 

122.00% 

122.00% 

122.00% 

122.00% 

74.50% 

74.50% 

74.50% 

74.50% 

74.50% 

0.37 

1.16 

1.29 

1.20 

1.20 

2.08 

2.58 

3.50 

4.20 

4.50 

2.04% 

1.60% 

1.89% 

1.87% 

2.10% 

1.95% 

1.95% 

1.95% 

1.95% 

1.95% 

$1.280 

$0.840 

$0.780 

$0.720 

$0.730 

$0.206 

$0.200 

$0.140 

$0.180 

$0.340 

In August 2020 the Company was advised that the United States Food and Drug Administration (FDA) has awarded Rare 
Pediatric Disease Designation (RPDD) to Kazia’s paxalisib (formerly GDC-0084) for the treatment of Diffuse Intrinsic Pontine 
Glioma (DIPG), a rare and highly-aggressive childhood brain cancer. 

In August 2020 the Company was also advised that the FDA has awarded Fast Track Designation (FTD) to paxalisib for the 
treatment of glioblastoma, the most common and the most aggressive form of primary brain cancer in adults.

In August 2020 United States Food and Drug Administration (FDA) has granted Orphan Drug Designation (ODD) to Kazia’s 
paxalisib (formerly GDC-0084) for the treatment of malignant glioma, which includes Diffuse Intrinsic Pontine Glioma (DIPG), 
a rare and highly aggressive childhood brain cancer.

63

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTSDIRECTORS’ DECLARATION

In the directors’ opinion:

• 

• 

• 

• 

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the 
Corporations Regulations 2001 and other mandatory professional reporting requirements;

the attached financial statements and notes comply with International Financial Reporting Standards as issued by the 
International Accounting Standards Board as described in note 2 to the financial statements;

the attached financial statements and notes give a true and fair view of the consolidated entity’s financial position as at 
30 June 2020 and of its performance for the financial year ended on that date; and

there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due 
and payable.

The directors have been given the declarations required by section 295A of the Corporations Act 2001.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the Board of Directors

Mr Iain Ross

Chairman

27 August 2020

Sydney

Dr James Garner

Managing Director, Chief Executive Officer

64

KAZIA THERAPEUTICS LIMITED 
KAZIA THERAPEUTICS LIMITED

Independent auditor’s report to the members of Kazia Therapeutics Limited

65

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTS          Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389  ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.  Liability limited by a scheme approved under Professional Standards Legislation.  www.grantthornton.com.au Level 17, 383 Kent Street Sydney NSW 2000  Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230  T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au Independent Auditor’s Report To the Members of Kazia Therapeutics Limited   Report on the audit of the financial report  Opinion We have audited the financial report of Kazia Therapeutics Limited (the Company) and its controlled entities (the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the Directors’ declaration.  In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance for the year ended on that date; and  b complying with Australian Accounting Standards and the Corporations Regulations 2001.  Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.    KAZIA THERAPEUTICS LIMITED

Independent auditor’s report to the members of Kazia Therapeutics Limited

66

KAZIA THERAPEUTICS LIMITED    Material uncertainty related to going concern We draw attention to Note 2 in the financial statements, which indicates that the Group incurred a net loss of $12,467,466 during the year ended 30 June 2020, and had a net operating cash outflows of $8,809,519. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key audit matters  Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.   In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.  Key audit matter How our audit addressed the key audit matter Intangible asset impairment (Note 2, Note 3 & Note 12)  The Group carries on its statement of financial position the Licensing Agreement which grants the Group the right to develop the paxalisib (formerly known as GDC-0084) molecule. The asset has a carrying value of $12,410,139 and is being amortised over the 20-year life of the underlying patent.   AASB 136 Impairment of Assets requires an entity to assess at the end of each reporting period whether there is any indication that an asset may be impaired. If any indication exists, the entity shall estimate the recoverable amount of the asset.  Assessing whether there is any indication that an asset may be impaired involves a high degree of judgement. This area is a key audit matter due to the complexities and high degree of judgement in assessing whether there are indicators of impairment. Our procedures included, amongst others: • obtaining an understanding of and evaluating management’s process and controls related to the assessment of the existence of impairment indicators; • reviewing and assessing management’s documented consideration of the existence of any impairment indicators; as well as making enquiries with management’s experts, for their expert opinions relating to the science; • considering each of the internal and external factors outlined by AASB 136 and assessing whether any indicators of impairment are present;  • reviewing management’s assessment of the potential impact of COVID-19 on the performance of the asset; • evaluating all information gathered to form a view as to the reliability of management’s determination; and • assessing the adequacy of the relevant disclosures in the financial statements.    KAZIA THERAPEUTICS LIMITED

Independent auditor’s report to the members of Kazia Therapeutics Limited

67

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTS    Completeness of contingent consideration  (Note 2, Note 3, Note 15 & Note 17)  During the 2017 financial year, the consolidated entity acquired 100% of the issued shares in Glioblast Pty Ltd, a privately-held, neuro-oncology-focused Australian biotechnology company. On the same day, Kazia entered into a worldwide licensing agreement with Genentech to develop and commercialise paxalisib (formerly known as GDC-0084).  As disclosed in Note 17, the acquisition agreements contain contingent payments dependent on the achievement of contracted milestones. Management experts were used in the assessment of the likely success and timing of each milestone. The estimate of the contingent consideration at 30 June 2020 is $1,844,988.   We consider the fair value of the contingent consideration at 30 June 2020 to be a key audit matter due to the high level of subjectivity and management judgement involved in calculating the contingent consideration and the materiality of the amounts in question.  Our procedures included, amongst others; • obtaining an understanding of and evaluating management’s process and controls related to the estimation of the liability; • evaluating the competence, capabilities and objectivity of management's experts; • obtaining management’s calculation of the contingent consideration liability and assessing the key inputs and assumptions made by management’s experts;  • where management’s assumptions are applied to other critical accounting estimates, such as the valuation of intangible assets described above, assessing whether those assumptions have been applied consistently across estimates; • reviewing management’s assessment of the potential impact of COVID-19 on the valuation of the contingent consideration and key inputs in the valuation model; and  • assessing the adequacy of the relevant disclosures in the financial statements. Recognition of R&D tax incentive (Note 2, Note 3, Note 5, Note 7 & Note 9)  Under the research and development (R&D) tax incentive scheme, the Group receives a 43.5% refundable tax offset of eligible expenditure if its turnover is less than $20 million per annum, provided it is not controlled by income tax exempt entities. A Registration of R&D Activities Application is filed with AusIndustry in the following financial year and, based on this filing, the Group receives the incentive in cash.   Management engaged an R&D expert to perform a detailed review of the Group’s total R&D expenditure to determine the potential claim under the R&D tax incentive legislation. The receivable at year-end for the incentive was $1,017,278. This represents an estimated claim for the period 1 July 2019 to 30 June 2020.  This area is a key audit matter due to the size of the receivable and because there is a degree of judgement and interpretation of the R&D tax legislation required by management to assess the eligibility of the R&D expenditure under the scheme.  Our procedures included, amongst others: • obtaining and documenting, through discussions with management, an understanding of the process to estimate the claim; • evaluating the competence, capabilities and objectivity of management's expert; • utilising an internal R&D tax specialist in: • reviewing the methodology used by management for consistency with the R&D tax offset rules; and  • considering the nature of the expenses against the eligibility criteria of the R&D tax incentive scheme to assess whether the expenses included in the estimate were likely to meet the eligibility criteria.   • inspecting supporting documentation for a sample of expenses claimed to assess validity of the claimed amount and eligibility against the R&D tax incentive scheme criteria; • comparing the nature of the R&D expenditure included in the current year estimate to the prior year claim;  • comparing the eligible expenditure used in the receivable calculation to the expenditure recorded in the general ledger;  • considering the entity's history of successful claims; • inspecting copies of relevant correspondence with AusIndustry and the Australian Taxation Office related to the claims; and • assessing the adequacy of the relevant disclosures in the financial statements.  KAZIA THERAPEUTICS LIMITED

Independent auditor’s report to the members of Kazia Therapeutics Limited

68

KAZIA THERAPEUTICS LIMITED    Information other than the financial report and auditor’s report thereon The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2020, but does not include the financial report and our auditor’s report thereon.   Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.   In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.   If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.   Responsibilities of the Directors for the financial report  The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.   In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.   Auditor’s responsibilities for the audit of the financial report  Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.   A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of our auditor’s report.  Report on the remuneration report Opinion on the remuneration report We have audited the Remuneration Report included in pages 25 to 31 of the Directors’ report for the year ended 30 June 2020. In our opinion, the Remuneration Report of Kazia Therapeutics Limited, for the year ended 30 June 2020 complies with section 300A of the Corporations Act 2001.     69

ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTS    Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.      Grant Thornton Audit Pty Ltd Chartered Accountants     S M Coulton Partner – Audit & Assurance  Sydney, 27 August 2020  SHAREHOLDER INFORMATION

The shareholder information set out below was applicable as at 21 August 2020.

Range

1 - 1,000

1,001 - 5,000

5,001 - 10,000

10.001 - 100,000

Over 100,000

Total

Holding less than a marketable parcel

EQUITY SECURITY HOLDERS

The names of the twenty largest quoted equity security holders are listed below:

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

WILLOUGHBY CAPITAL PTY LTD 

MNA FAMILY HOLDINGS PTY LTD 

HISHENK PTY LTD

BNP PARIBAS NOMS PTY LTD 

JAMPLAT PTY LTD

CITICORP NOMINEES PTY LIMITED

MR IAIN ROSS

COMSEC NOMINEES PTY LIMITED

D & G BROWN INVESTMENTS PTY LIMITED

INVIA CUSTODIAN PTY LIMITED 

NATIONAL NOMINEES LIMITED

MR TONY MARK ELDRIDGE + MRS ANITA MAREE ELDRIDGE 

BOND STREET CUSTODIANS LIMITED 

C & L JACKSON INVESTMENTS PTY LTD 

EL CORONADO HOLDINGS

MRS JANET LOUISE BOWTELL + MR GARY OWEN BOWTELL  


MR ROSS RICHARD EDDISON

CS FOURTH NOMINEES PTY LIMITED 

MRS ALISON LOUISE SUTERS + MR MARK GERARD SUTERS

SUBSTANTIAL HOLDERS

Substantial holders of equity in the Company are:

WILLOUGHBY CAPITAL PTY LTD 

MNA FAMILY HOLDINGS PTY LTD 

PLATINUM INTERNATIONAL HEALTH CARE FUND *

* Held by a nominee

VOTING RIGHTS
The voting rights attached to ordinary shares are set out below:

Ordinary shares

Total holders

3,003

925

307

444

75

4,754

2,458

Number 
of shares

818,239

2,343,972

2,385,760

13,113,943

75,936,455

94,598,369

385,252

Units

% Units

39,899,895

12,355,000

2,145,000

1,930,000

1,687,141

970,000

955,390

800,001

589,104

572,356

544,354

505,194

505,000

500,000

458,840

453,164

360,000

345,725

342,135

340,076

42.18

13.06

2.27

2.04

1.78

1.03

1.01

0.85

0.62

0.61

0.58

0.53

0.53

0.53

0.49

0.48

0.38

0.37

0.36

0.36

66,258,375

70.04

12,355,000

2,145,000

9,078,948

23,578,948

13.06

2.27

10.60

25.93

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share 
shall have one vote.

There are no other classes of equity securities.

70

KAZIA THERAPEUTICS LIMITEDKAZIA THERAPEUTICS LIMITED

Corporate directory
30 June 2020

DIRECTORS

Mr Iain Ross 
Mr Bryce Carmine 
Mr Steven Coffey 
Dr James Garner

COMPANY SECRETARY

Ms Kate Hill

REGISTERED OFFICE

Three International Towers,  
Level 24 
300 Barangaroo Avenue  
Sydney NSW 2000

PRINCIPAL PLACE OF BUSINESS

Three International Towers,  
Level 24 
300 Barangaroo Avenue  
Sydney NSW 2000

SHARE REGISTER

Computershare Investor Services Pty Limited 
Level 4 
60 Carrington Street 
Sydney NSW 2000 
Tel: 1300 787 272

AUDITOR

Grant Thornton Audit Pty Ltd 
Level 17 
383 Kent Street 
Sydney NSW 2000

STOCK EXCHANGE LISTING

Kazia Therapeutics Limited ordinary shares are listed on the 
Australian Securities Exchange (ASX code: KZA)

Kazia Therapeutics Limited’s ordinary shares trade in the 
United States in the form of ADRs on the NASDAQ Capital 
Market (NASDAQ code: KZIA).  At year end each ADR 
represents ten ordinary Kazia shares. 

Kazia Therapeutics Limited options are listed on the Australian 
Securities Exchange (ASX code KZAO)

WEBSITE

 www.kaziatherapeutics.com

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ANNUAL REPORT 20202020 AT A GLANCECHAIRMAN’S LETTERCEO’S REPORTKEY MILESTONESPIPELINE REVIEWFINANCIAL REPORTDIRECTORS’ REPORTFINANCIAL STATEMENTS