Key points
- The Race Oncology share price is up as high as 2.8% today
- A new discovery relating to heart protection has been made
- Oversubscribed share purchase plan has raised $29.7 million
The Race Oncology Ltd (ASX: RAC) share price is up today following an activities update for the December quarter.
In it, the oncology company revealed a discovery relating to its core product, Zantrene.
Coinciding with the news, the Race Oncology share price went 2.8% higher today to $2.93, before retreating to $2.90 at the time of writing.
So what did the healthcare company announce? Let's dissect its latest report…
Race Oncology share price up on activities report
At a glance, the Race Oncology corporate update reads as follows:
- A successful capital raising of $29.7 million through an oversubscribed share purchase plan at $3 a share
- Cash and equivalents increased to $37.10 million at 30 December (compared to $8.94 million on 30 September)
- The number of Race Oncology shareholders has increased
Race Oncology's share purchase plan is funding the now-expanded Three Pillar Strategy for Zantrene.
It comes as the product showed new "commercial potential".
So far, this raising will allow the product to progress into:
- FTO solid tumour Phase 1b/2 clinical trial
- Cardio protective preclinical and clinical Phase 2b trial
- Expansion of the EMD AML Phase 2 trial into Europe
- Improved Zantrene formulations
- New molecule development
Race Oncology's Three Pillar Strategy will enable it to progress the expansion of the product through clinical programs, formulate and optimise its development, and pursue opportunities such as "internal development, partnership or acquisition".
New discoveries on the horizon
In addition to the raising, the healthcare company has also made a preclinical discovery into heart protection during cancer treatment.
In its statement, the company explains:
While antracyclines are effective anti-cancer drugs they carry a serious risk of causing permanent heart damage.
Zantrene was shown to protect heart muscle from anthracycline-induced death when used in combination.
Using Zantrene and doxorubicin in combination resulted in better elimination of cancer cells, and further protected the heart from Multiple Myeloma drugs.
Race Oncology will extend its heart protection collaboration with the University of Newcastle to further the discovery.
Since the end of the quarter, the Race Oncology share price has dropped by 20%.
Comment from Race Oncology management
Race Oncology chair John Cullity said:
The exceptional work of our team and collaborators continues to unlock Zantrene's potential. I'm particularly impressed by candidate clinical applications in the cardio-protection setting, which might recalibrate anthracycline therapeutics.
On behalf of the board, my particular thanks to our shareholders for supporting the recent SSP…
And it's not just heart protection on the horizon.
Race Oncology CSO Daniel Tillet said:
We are looking forward to updating our investors on the rapid progress we are making over 2022 and beyond.
We are further encouraged by the newly released independent study showing Zantrene's potential to inhibit FTO in Type 2 Diabetes.
While this is not our primary area of focus, it is important in that it builds upon the original identification of Zantrene as a potent FTO inhibitor by Professor Chen and his team at the City of Hope Hospital (2020)…
Race Oncology share price snapshot
Over the past 12 months, the Race Oncology share price has increased by 72%.
In January last year, the Race Oncology share price hit its lowest point at $1.64 apiece. By June, it had done a complete turnaround to achieve its highest point ever at $3.89 apiece.
The company has a market capitalisation of $462 million and 159 million shares outstanding.
