Race Oncology Ltd (ASX: RAC) shares are in a trading halt today as the company seeks to raise an undisclosed amount of capital. At Friday's close, the Race Oncology share price was trading at $3.07 after significant falls over the past week and month.
Race is a specialty pharmaceutical company engaged in the development and marketing of a pharmaceutical drug for the treatment of cancer. Its best-known product is Bisantrene, a cancer chemotherapy drug.
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Capital raising
In today's ASX update, Race Oncology requested its shares be placed in a trading halt until Wednesday 5 May or until it provides a further update regarding a capital raising. Today's announcement didn't outline the amount of capital the company is seeking to raise or its purpose.
Given recent news from Race Oncology, however, it's possible the funds are required to progress further studies and trials of Bisantrene, which has returned multiple positive trial results across Australia and the United States.
The company's shares edged higher on 28 April after it announced it had entered into a collaborative preclinical research program with The University of Newcastle to further trial Bisantrene's efficacy.
The Race share price has risen more than 920% over the past 12 months based on the company's reports and trial evidence regarding Bisantrene. According to the company, current studies are trialling "cellular models to investigate Bisantrene as a novel treatment for clear cell renal cell carcinoma (ccRCC)".
Bisantrene has been studied for its effects on inhibiting cancerous cells in multiple human organs, including skin. The company's shares rose by more than 10% on 15 April after an announcement stating Bisantrene was an effective inhibitor of skin cancers.
Bisantrene was found to inhibit cancerous cells by stopping the production of a human fat mass and obesity-associated protein. This protein releases a low-level of arsenic, which is poisonous and can transform healthy cells into malignant cancers.
By preventing the production of this protein, Bisantrene can therefore prevent the protein's role in promoting cancerous cell transformations.
Race Oncology share price snapshot
The Race Oncology share price has risen by around 75% in 2021 so far, rising from $1.75 to its current level in four months. Based on its current valuation, Race Oncology has a market capitalisation of around $433 million.
