ASX healthcare shares are currently in the red on Thursday, with the S&P/ASX 200 Health Care Index (ASX: XHJ) down 0.2% and the broader S&P/ASX 200 Index (ASX: XJO) 0.18% lower.
However, two ASX healthcare shares are bucking the trend. One is rising on the back of a company update, while the other is likely continuing northwards due to positive momentum.
Let's check out the details.
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2 ASX healthcare shares bucking the trend today
Race Oncology Ltd (ASX: RAC)
The Race Oncology share price lifted 5.88% to $1.44 shortly after the market opened on Thursday. This followed news of the successful completion of a drug discovery program.
Race Oncology shares have since fallen back to $1.39, up 2.21%.
The clinical-stage cancer drug biotech announced today that a program using NMR-based fragment screening had identified 39 molecular candidates (also called 'hits') that bound themselves to an m6A RNA demethylase protein called the FaT and Obesity-associated protein (FTO).
These hits have never been seen before or used in any previously reported FTO inhibitors.
FTO is one of the key proteins in the RNA regulatory system. It controls m6A RNA levels. Dysregulation of RNA epigenetics is a key driver of several metabolic diseases and many cancers.
Race said the successful testing would allow for the development of novel and patentable molecules.
These would have the potential to become new drugs specifically targeting the m6 A RNA epigenetic pathway.
There is much industry interest in developing FTO inhibitor drugs as potential new cancer treatments.
Race said the successful testing was "a major milestone" in its development of new FTO inhibitors that were "structurally distinct" from known FTO inhibitors. This means Race can develop patentable leads.
Race said it now "has a clear opportunity" to be the first to the clinic with a purpose-built, targeted FTO inhibitor that might have utility beyond cancer".
Race's Vice President of Research, Prof. Mike Kelso, commented:
Identification of chemical 'hits' that bind to a protein target of interest is a critical step in modern drug discovery.
Our successful FTO program at Monash provides Race with valuable new IP in the RNA epigenetics space, an enormously exciting area at the cutting-edge of oncology research and drug development.
Race said the next step would be a 'hit-to-lead' medicinal chemistry program. It described this as "an expensive undertaking", with the company currently evaluating its options.
The ASX healthcare share has climbed 63.5% in 2024 so far and is up 52.75% over the past 12 months.
Sigma Healthcare Ltd (ASX: SIG)
The Australian pharmaceutical distributor and wholesaler has no official news for the market today.
However, the ASX healthcare share rose by as much as 4.3% during intraday trading to a high of $2.42. The Sigma Healthcare share price is currently $2.40, up 3.45%.
A likely driver of today's share price rise is the ongoing momentum generated by Sigma's proposal to merge with Chemist Warehouse.
Investors are excited about this prospect, with the ASX healthcare share up by about 225% since news of the proposal broke on 11 December last year.
Earlier this month, the Australian Competition & Consumer Commission (ACCC) announced it would not oppose the merger. Investors are now awaiting further news as the merger plans progress.
The ASX healthcare share is up 140% in the year to date and up almost 253% over the past 12 months.
