Race Oncology (ASX:RAC) share price slumps on quarterly update

It wasn’t a great day for Race Oncology shares. We take a look at what the pharmaceutical company announced

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The Race Oncology Ltd (ASX: RAC) share price finished in the red today. The dip came after Race updated the market on its quarterly results before the open.

At the closing bell, Race Oncology shares were exchanging hands at $3.44 apiece, a 2.82% fall from the market open.

Let’s take a look at Race’s report in a bit closer detail.

Quick refresher on Race Oncology

Race Oncology is a precision oncology company that commercialises assets in the cancer and oncology fields.

Its flagship product is a phase 2/3 cancer drug called Bisantrene.

The pharmaceutical company has a market capitalisation of $511 million at the time of writing.

Race Oncology’s quarterly results

The major takeout from the quarter was that Race’s “three pillar” strategy advanced with “two phase 2 clinical programs under way” in Israel and Australia.

These clinical studies are examining the impact of Bisantrene as a combination drug in patients with “relapsed/refractory” acute myeloid Leukemia (AML).

Furthermore, Race signed an agreement with clinical research organisation (CRO) Parexel, to “manage Race’s phase 2 AML program in Australia”.

This arm of the AML clinical program is investigating Bisantrene’s impact on the “extra-medullary (EMD) form of the (AML) disease”. The Race Oncology share price jumped 3% on this update.

Moreover, the company also announced a collaboration with the University of Newcastle to investigate Bisantrene in melanoma and kidney cancer.

Additional takeouts from the report

Race also appointed Dr David Fuller as chief medical officer. He has “30 years experience in oncology”.

Additionally, the company also successfully raised $5.4 million to support its pre-clinical, clinical and related manufacturing initiatives.

Cash expenditure of $2.8 million was significantly higher than the previous quarter, and was dedicated to procurement of the CRO contract with Parexel alongside clinical trial initiatives.

Despite this, at the end of the quarter, Race reported cash and equivalents of $9.32 million on its balance sheet, a 44% increase from the quarter prior.

Speaking on the progress, Race CEO Phillip Lynch said:

The team has progressed key elements of the Three Pillar Strategy, in the most recent quarter, confirming clinical programs where we will study Bisantrene further in the Acute Myeloid Leukaemia setting. Importantly, we added critical appointments to the team to better support our ability to execute the breadth of our plans.

Race Oncology share price snapshot

The Race Oncology share price has posted a return of 96% since January 1.

Over the past 12 months, the shares have gained 282%, well ahead of the broad index. For comparison, the S&P/ASX 200 Index (ASX: XJO) has posted a return of 23% over the same time frame.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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