Racing higher: Race Oncology (ASX:RAC) share price jumps 13% on study breakthrough

It was a good day for the healthcare company.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Australian pharmaceutical company Race Oncology Ltd (ASX: RAC) jumped higher today and finished 13% in the green.

Investors bid up the Race Oncology share price following study readouts for its lead drug candidate, Zantrene, in a heart safety research program.

Race Oncology shares traded as high as $3.83 before reversing course and finishing the day slightly lower at $3.81.

Here are the details.

man jumping along increasing bar graph signifying jump in alumina share price

Image source: Getty Images

What sent Race Oncology shares racing higher?

Race Oncology's shares started well after it announced the company's lead drug candidate, Zantrene, showed promising results in a recent preclinical trial.

The research found that Zantrene is able to "protect heart muscles cells from anthracycline (specifically doxorubicin) induced cell death while improving the killing of breast cancer cells".

Anthracyclines are one of the most effective anti-cancer treatments developed and are used in more cancer settings than any other class of chemotherapeutic agent, according to the announcement.

However, whilst they are highly effective anti-cancer drugs, their use in patients comes with the serious risk of permanent damage to the heart.

Race Oncology's discovery is therefore a step in resolving this issue for patients receiving life saving treatments in this complex area.

The discovery is to be fast-tracked to the clinic with a Phase 2b trial planned for 2022. The cohort will be made from breast cancer patients identified at risk of anthracycline-caused heart damage.

The company is also positive about where these latest results will lead in terms of Zantrene's commercial success. It reckons the results "offer the potential of outsized clinical and commercial returns from new Zantrene/anthracycline formulations and combinations".

Speaking on the announcement, Race Oncology's CEO Phillip Lynch said:

Zantrene's cardio toxic properties were always of interest, but this novel cardio protective insight is far more significant to the drug's potential application as an adjunctive to anthracycline backbone chemotherapy. I look forward to the team quickly advancing these investigations so we might assess and progress this opportunity as a matter of substantial priority.

Chief Scientific Officer, Dr Daniel Tillett said:

After the discovery that Zantrene is a potent FTO inhibitor, this is a second 'once in a lifetime' discovery. To find that Zantrene can protect the heart from chemotherapy while also killing cancers better is an extraordinary 'best of both worlds' outcome. Given anthracyclines are used in millions of cancer patients every year, it is hard to overstate the clinical and commercial potential of this breakthrough.

Race Oncology share price history

In the past 12 months, the Race Oncology share price has gained 172% after rallying 118% this year to date.

It has soared 20% in the past month alone and is up 17% in the past week of trading as well. Each of these results outpaces the benchmark S&P/ASX 200 Index (ASX: XJO)'s gain of around 12.5% in the last year.

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.

More on Healthcare Shares

Two happy pharmacists standing together in a pharmacy.
Healthcare Shares

Why Clarity Pharmaceuticals shares just fell 5% on today's announcement

Investors are balancing Clarity's long-term potential against near-term uncertainty.

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Healthcare Shares

Still down 40%, are Pro Medicus shares primed to break out?

Two major US contract wins in as many weeks could mark a turning point in sentiment.

Read more »

Happy healthcare workers in a lab.
Healthcare Shares

Telix share price leaping higher today on $3 billion US news

Investors are snapping up Telix shares on Monday following big US news.

Read more »

Four smiling young medics with arms crossed stand outside a hospital.
Healthcare Shares

Pro Medicus locks in 5-year, $37m Northwestern Medicine contract renewal

Pro Medicus has renewed its major contract with Northwestern Medicine, locking in higher fees and strengthened client ties for the…

Read more »

Rising healthcare ASX share price represented by doctor giving thumbs up
Healthcare Shares

Telix Pharmaceuticals announces US$40m Regeneron radiopharma deal

Telix Pharmaceuticals has announced a US$40m strategic collaboration with Regeneron for innovative radiopharmaceutical cancer therapies.

Read more »

Two health workers taking a break.
Healthcare Shares

It could be time to buy-low on this ASX small-cap stock according to brokers

This ASX healthcare stock keeps attracting positive ratings, with one broker now tipping a 268% rise.

Read more »

A senior pharmacist talks to a customer at the counter in a shop.
Healthcare Shares

Broker sees 26% upside in ASX healthcare share behind Chemist Warehouse

Morgans has just upgraded its rating on this ASX healthcare stock due to ongoing share price weakness.

Read more »

Woman using a pen on a digital stock market chart in an office.
Healthcare Shares

Why this ASX healthcare stock is surging while the market sinks on Middle East fears

Avita shares surge as a US government contract boosts sentiment again

Read more »