Australian oncology company Kazia Therapeutics Limited (Nasdaq:KZIA) announced on Monday the in-licensing of a first-in-class SETDB1-targeted epigenetic drug development platform from QIMR Berghofer.

The platform includes use of an AI-integrated epigenetic drug discovery engine, designed to enable rapid, precise, and scalable candidate generation. The lead drug candidate, MSETC, was discovered and optimised using this AI-integrated epigenetic drug discovery engine. MSETC is a highly selective bicyclic peptide designed to target a novel, disease-associated nuclear SETDB1 complex. By targeting SETDB1, the programme is intended to restore immune signalling in tumours that have become resistant to immunotherapy, including checkpoint inhibitors.

Kazia says that the SETDB1 programme is supported by extensive peptide screening and optimisation, generating a pipeline of candidates with strong selectivity and intracellular targeting capability.

The SETDB1 programme is currently in preclinical development with a defined path toward IND-enabling studies. Kazia plans to generate translational data to support biomarker-driven development and combination strategies with immunotherapies and targeted agents.

Kazia intends to advance the SETDB1 programme in parallel with its PD-L1 degrader platform through IND-enabling studies.

Under the terms of the agreement, Kazia has acquired global rights to the SETDB1 platform, including the lead candidate MSETC. Financial terms include an upfront payment of approximately USD1.39m and a tiered revenue-sharing structure aligned with development progress, with no clinical or regulatory milestone obligations.