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

A young man sits at his desk working on his laptop with a big smile on his face.
Healthcare Shares

Resmed reports double-digit revenue and profit increases in Q3 FY26

Resmed posted double-digit revenue and profit growth in Q3 FY26, with management confident about continued momentum.

Read more »

a woman puts her fingers in her ears with a pained expression on her face with her eyes closed as though trying to block hearing bad news or an unpleasant loud noise.
Healthcare Shares

Cochlear shares crashed in April, but is a comeback looming?

This ASX 200 healthcare stock is caught between short-term pain and long-term potential.

Read more »

A medical researcher rests his forehead on his fist with a dejected look on his face while sitting behind a scientific microscope with another researcher's hand on his shoulder, as if giving comfort.
Healthcare Shares

What's making healthcare the worst sector on the ASX 200, down 39% in a year?

An expert outlines the key headwinds weighing on the industry and share prices today.

Read more »

woman testing substance in laboratory dish, csl share price
Healthcare Shares

Good news, falling shares: What's dragging this ASX stock lower?

In biotech, strong updates don't always push the share price higher.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Healthcare Shares

Guess which ASX All Ords healthcare share is rocketing 18% in Thursday's sinking market

Investors are piling into the ASX healthcare share on Thursday. But why?

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Healthcare Shares

Mesoblast shares: Cash burn falls and Ryoncil® sales climb

Mesoblast reports higher Ryoncil® sales, improved cash management, and research milestones for the March 2026 quarter.

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
Healthcare Shares

Regis Healthcare expects FY26 EBITDA to hit top end of guidance

Regis Healthcare expects top-end FY26 earnings as strong occupancy, RAD inflows, and efficiency gains set a positive outlook.

Read more »

A man holding a cup of coffee puts his thumb up and smiles with a laptop open.
Healthcare Shares

This ASX healthcare stock could be set to rise 50%

This small cap could be one to watch.

Read more »