Why is the Race Oncology share price soaring 13% today?

New trial results have excited ASX investors.

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Key points

  • Race Oncology shares are soaring today on positive drug trial news
  • Cancer drug Zantrene was found to protect mice from chemotherapy damage 
  • Race Oncology said the results support future clinical trials 

The Race Oncology Ltd (ASX: RAC) share price is surging today on anti-cancer drug news.

Shares in the oncology company reached $2.10 in early trading, a 13% gain. For perspective, the S&P/ASX All Ordinaries Index (ASX: XJO) is 0.87% in the red today.

So, what scientific news did Race Oncology announce to the ASX today?

News of successful trial boosts Race Oncology share price

Investors appear to be buying up Race Oncology shares after the company released results from its latest trial.

The results showed that Race Oncology's anti-cancer drug Zantrene protected the hearts of mice from chemotherapy damage.

Their hearts were protected from the impact of anthracyclines when the chemotherapeutic dose of Zantrene was boosted. Anthacyclines are chemotherapy drugs commonly used to treat cancer.

No further toxicity or bone marrow suppression was identified with this higher dose.

Race Oncology is working with the University of Newcastle on this trial, as announced in April last year.

Race Oncology CEO Phillip Lynch said Zantrene is a "large commercial opportunity" with significant potential to improve modern chemotherapy.

He added: "We are committed to producing further preclinical data that will continue to prove the case for this opportunity for Zantrene."

The company said the results support further clinical trials using Zantrene with anthracyclines to improve cancer treatment.

Further commenting on the trial, associate professor Aaron Sverdlov said: "To date, there are no widely used or well established strategies to protect the heart against chemotherapy-induced damage."

Share price snapshot

Race Oncology shares have tumbled nearly 44% in the past year.

In the year to date alone, they have lost nearly 43%.

For perspective, the All Ords index has shed nearly 9% in a year.

Race Oncology has a market capitalisation of $329 million based on the current share price.

Motley Fool contributor Monica O'Shea 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 Scott Phillips.

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