Insights

Race Oncology (ASX:RAC) share price slumps on quarterly update

It wasn’t a great day for Race Oncology shares. We take a look at what the pharmaceutical company announced
The post Race Oncology (ASX:RAC) share price slumps on quarterly update appeared first on The Motley Fool Australia. –

The Race Oncology Ltd (ASX: RAC) share price finished in the red today. The dip came after Race updated the market on its quarterly results before the open.

At the closing bell, Race Oncology shares were exchanging hands at $3.44 apiece, a 2.82% fall from the market open.

Let’s take a look at Race’s report in a bit closer detail.

Quick refresher on Race Oncology

Race Oncology is a precision oncology company that commercialises assets in the cancer and oncology fields.

Its flagship product is a phase 2/3 cancer drug called Bisantrene.

The pharmaceutical company has a market capitalisation of $511 million at the time of writing.

Race Oncology’s quarterly results

The major takeout from the quarter was that Race’s “three pillar” strategy advanced with “two phase 2 clinical programs under way” in Israel and Australia.

These clinical studies are examining the impact of Bisantrene as a combination drug in patients with “relapsed/refractory” acute myeloid Leukemia (AML).

Furthermore, Race signed an agreement with clinical research organisation (CRO) Parexel, to “manage Race’s phase 2 AML program in Australia”.

This arm of the AML clinical program is investigating Bisantrene’s impact on the “extra-medullary (EMD) form of the (AML) disease”. The Race Oncology share price jumped 3% on this update.

Moreover, the company also announced a collaboration with the University of Newcastle to investigate Bisantrene in melanoma and kidney cancer.

Additional takeouts from the report

Race also appointed Dr David Fuller as chief medical officer. He has “30 years experience in oncology”.

Additionally, the company also successfully raised $5.4 million to support its pre-clinical, clinical and related manufacturing initiatives.

Cash expenditure of $2.8 million was significantly higher than the previous quarter, and was dedicated to procurement of the CRO contract with Parexel alongside clinical trial initiatives.

Despite this, at the end of the quarter, Race reported cash and equivalents of $9.32 million on its balance sheet, a 44% increase from the quarter prior.

Speaking on the progress, Race CEO Phillip Lynch said:

The team has progressed key elements of the Three Pillar Strategy, in the most recent quarter, confirming clinical programs where we will study Bisantrene further in the Acute Myeloid Leukaemia setting. Importantly, we added critical appointments to the team to better support our ability to execute the breadth of our plans.

Race Oncology share price snapshot

The Race Oncology share price has posted a return of 96% since January 1.

Over the past 12 months, the shares have gained 282%, well ahead of the broad index. For comparison, the S&P/ASX 200 Index (ASX: XJO) has posted a return of 23% over the same time frame.

The post Race Oncology (ASX:RAC) share price slumps on quarterly update appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

The 5 best performing ASX healthcare shares of FY21, did yours make the cut?

The author Zach Bristow has no positions 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!