Why did this ASX All Ords healthcare share just rocket 28%?

Investors are piling into the ASX All Ords healthcare share today. But why?

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The All Ordinaries Index (ASX: XAO) is up 0.3% in morning trade today, with plenty of help from this surging ASX All Ords healthcare share.

The rocketing stock in question is clinical stage biopharmaceutical company Race Oncology Ltd (ASX: RAC).

Race Oncology shares closed yesterday trading for $1.80. In earlier trade, shares leapt to $2.30 each, up 27.8%. After some likely profit-taking, in later morning trade, shares are swapping hands for $2.11 apiece, up 17.2%.

Here's what's stoking investor interest in the ASX All Ords healthcare share, whose dedicated mission is to be at the heart of cancer care.

ASX All Ords healthcare share lifts off on IP hopes

The Race Oncology share price is off to the races (sorry, couldn't resist) after the company announced significant scientific discoveries into the nature of tumour treatment drug bisantrene have enabled it to submit a new composition of matter patent application.

In short, Race Oncology scientists said they found a way of patenting the active chemical form of bisantrene. That's despite the drug's age and extensive clinical history, which dates back to the early 1980s. If granted, this composition of matter patent will last until 2045.

The ASX All Ords healthcare share stressed that these are the most valuable form of intellectual property (IP) in the pharmaceutical industry, ensuring exclusivity of the drug for at least 20 years.

The company's scientists reportedly discovered that bisantrene consists of three photoisomers with different biological and anticancer activities, which "rapidly interconvert" when exposed to visible light.

Race said it has created a range of manufacturing and physical processes to enable the controlled infusion of the pure active (E,E)-bisantrene isomer into patients.

It has submitted three patent applications relating to (E,E)-bisantrene.

What did management say?

Commenting on the progress sending the ASX All Ords healthcare share rocketing today, Race Oncology CEO Daniel Tillett said, "Being able to generate new composition of matter IP covering the active isomer of bisantrene fundamentally changes the commercial prospects of Race Oncology."

He added:

We now expect to have 20 years of the strongest IP protection possible for the RC220 and RC110 formulations containing (E,E)-bisantrene. These discoveries highlight the commercial value of undertaking new preclinical research on clinically established pharmaceutical assets.

I congratulate the entire Race preclinical team for their inspiration and extraordinary efforts in making this fundamental discovery and turning science into a valuable outcome for all our investors.

With today's big boost in the Race Oncology share price factored in, the ASX All Ords healthcare share is up 54.0% so far in 2025.

Motley Fool contributor Bernd Struben 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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