Guess which ASX All Ords share is soaring 12% on a 'key step'

A positive update is getting investors very excited. What did the company announce?

The Race Oncology Ltd (ASX: RAC) share price is having a very strong session.

In morning trade, the ASX All Ords share is up an impressive 12% to 86 cents.

A woman jumps for joy with a rocket drawn on the wall behind her.

Image source: Getty Images

Why is this ASX All Ords share rising?

Investors have been buying the oncology company's shares after it released an update on its novel bisantrene formulation, RC220.

According to the release, the company has successfully completed a series of preclinical animal and laboratory studies showing that RC220 prevents drug precipitation (crystallisation) and phlebitis (vein inflammation or damage) when infused into peripheral veins.

These studies were performed in vivo and in vitro at Pharmaron in California and by Race Oncology scientists at the University of Wollongong.

Why is this important?

The current administration of bisantrene requires the use of an invasive central venous catheter and must be performed in a hospital setting.

While this approach is common practice for the delivery of chemotherapy drugs in patients with haematological cancers, it is not standard practice for solid tumours, such as breast cancer, where peripheral IV infusions in an outpatient setting are typically preferred by both the patient and the treating oncologist.

RC220 could potentially open the door to bisantrene being administered in an outpatient setting.

The ASX All Ords share' executive director, Dr Pete Smith, was pleased with the news. He commented:

Given the creativity, hard work and capital we have invested into RC220, it is gratifying to see the formulation perform as designed, preventing bisantrene peripheral vein precipitation and phlebitis in industry standard preclinical models expected by regulators. This is a key step on our path to bringing a superior version of bisantrene to the clinic for the benefit of a much larger number of patients with solid tumours and the clinicians who treat them. With RC220 also comes additional, robust intellectual property that adds significant commercial value to Race.

Motley Fool contributor James Mickleboro 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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