What sent the Race Oncology (ASX:RAC) share price rocketing 20% today?

The Race Oncology share price fired up 15% higher today with nothing new reported. We check out the latest quarterly update for some details.

Gretchen Kennedy

Gretchen grew up in a small Connecticut town where she learned to read The Wall Street Journal as part of the grade six enrichment program. She moved to Australia in 2002, earned a Master of Arts (Professional Writing) and went on to spend eight years writing on Wall Street. In June 2018, Gretchen returned to Australia and has since developed a keen interest in all things ASX. In December 2020, she started writing for the Motley Fool. Gretchen's usually writing something, reading a book or chasing her dogs around.

Published February 5, 2021 4:57 pm AEDT

The Race Oncology Ltd (ASX: RAC) share price rocketed 20.98% today, closing the day at $2.48 per share.

Race Oncology Ltd (RAC) is an Australian pharmaceutical company with developments in the cancer field. The company produces a chemotherapy drug called Bisantrene, which has been the subject of more than 40 phase II clinical studies.

Today's gains cap off a big week for the Race Oncology share price, which has boosted more than 45% in the past 5 days.

While there was no news out of Race Oncology today, its quarterly report was released on 27 January 2021. We take a closer look at the company's recent performance.

Investor riding a rocket blasting off over a share price chart — Image source: Getty Images

A summary of the Race Oncology financials

In its most recent quarterly report for the period ended 31 December 2020, Race Oncology reported cash and equivalents of $5.58 million, compared with $5.66 million at 30 September 2020.

Net outflows were supported by a $262,000 cash injection received from conversion of options and receipt of the $387,000 R&D tax rebate.

Operating activities totalled $728,000, a decrease of $115,000 from the prior quarter.

Race Oncology currently has a market capitalisation of $275.7 million with 129.5 million shares outstanding.

Race Oncology announces new 'three pillar' strategic plan

Race Oncology also used the quarterly update to announce the company's new 'three pillar' strategic plan.

The concept behind the plan is to maximise the potential down-streaming from activities related to the company's Bisantrene treatment. This includes license applications or corporate sales to scaled pharmaceutical companies.

The company believes the new strategy will "significantly expand" opportunities for Bisantrene while protecting its legacy applications.

Commenting on the new strategy, Race Oncology CEO Phillip Lynch said:

The team was excited to share the new Three Pillar strategy at the recent Annual General Meeting. It is the result of a comprehensive review of our core asset, assessing the competitive and commercial environment, and aligning on a goal to actively pursue Bisantrene's potential as a potent inhibitor of FTO and precision oncology agent. This decision has the potential to unlock significant value for shareholders and the team is progressing the required assessments to ensure we maximise the probability of success.

FTO stands for fat mass and obesity-associated protein. The company continues to investigate Bisantrene's use as an FTO inhibitor.

The Race Oncology share price has exploded more than 780% higher over the past 12 months.

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