Kazia Therapeutics (Nasdaq: KZIA) and QIMR Berghofer Medical Research Institute announced an in-licensing agreement focused on a preclinical bicyclic peptide targeting a disease-associated nuclear SETDB1 complex. Kazia has acquired global rights to the SETDB1 epigenetic drug development platform, including lead candidate MSETC, a bicyclic peptide designed to restore immune signaling in tumors that have become resistant to checkpoint inhibitors. The Brisbane-based research institute, a Queensland government-established non-profit founded in 1945, retains an interest via a tiered revenue-sharing structure.
Kazia paid an upfront of approximately USD 1.39 million. The agreement carries no clinical or regulatory milestone obligations, with economics structured entirely as a tiered revenue share tied to development progress. Rates were not disclosed.
Deal context
MSETC is described by Kazia as targeting a novel, disease-associated nuclear SETDB1 complex rather than the isolated enzyme. SETDB1 — also known as KMT1E or ESET — is a histone methyltransferase that catalyzes trimethylation of histone H3 at lysine 9, a repressive chromatin mark associated with silencing of tumor suppressor genes and immune recognition pathways. Preclinical literature has linked SETDB1 overexpression to immune evasion across multiple solid tumor types, with inhibition shown to restore interferon signaling and enhance antigen presentation. MSETC's bicyclic peptide format is structurally relevant here: the constrained two-ring architecture enables engagement of protein-protein interaction surfaces within multi-protein nuclear assemblies — interfaces that conventional small molecules typically cannot access. The platform also incorporates an AI-integrated discovery engine that Kazia says enabled rapid optimization of MSETC and retains the capacity to generate additional candidates. MSETC is in preclinical development, with IND-enabling studies the next defined milestone.