Race Oncology (ASX:RAC) share price rises following preclinical discovery

Shares in the oncology provider are up following an exciting discovery…

| More on:
Lab technician analyses a sample in a laboratory for a clinical trial

Image source: Getty Images

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.

Should you invest $1,000 in Race Oncology right now?

Before you consider Race Oncology, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Race Oncology wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Alice de Bruin has no position 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

Three Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discovery
Growth Shares

Why CSL shares are ‘going to deliver’ in 2022: fund manager

Quality growth companies can perform well even in an era of rising interest rates.

Read more »

a group of medical researchers stands side by side with each other wearing white coats in their research laboratory with scientific equipment in the background.
Healthcare Shares

Incannex share price pops 9% on FDA news

The medicinal cannabis drug development company came out with some positive developments from its FDA meeting...

Read more »

Two medical researchers in white coats collaborate over a computer screen of data in a medical research laboratory
Broker Notes

Where next for the CSL share price?

CSL shares could be heading higher according to one leading broker...

Read more »

A telehealth doctor at her desk.
Healthcare Shares

Why is the Ramsay share price smashing the ASX 200 on Monday?

Ramsay shares are off to a positive start today.

Read more »

a doctor in a white coat sits at her computer with finger on mouth thinking about something in her office with medical equipment in the background.
Healthcare Shares

What’s going on with the Polynovo share price today?

The strong start has dissipated for Polynovo shares.

Read more »

a doctor in a white coat sits at her computer with finger on mouth thinking about something in her office with medical equipment in the background.
Healthcare Shares

Virtus share price holds steady despite 30% earnings fall

Shareholders are staying loyal with a looming acquisition.

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.
Earnings Results

Avita Medical share price tumbles 7% on declining Q1 revenue

The ASX healthcare share saw its net loss for the quarter increase 58% year-on-year.

Read more »

ASX share price movement represented by doctor pressing digitised screen with array of icons including one entitled health insurance
Healthcare Shares

Own Medibank shares? Here’s what to watch over the coming months

What are the key dates for Medibank in 2022?

Read more »