Wednesday morning saw healthcare stock Race Oncology [ASX:RAC], developer of cancer drug treatments and melanoma therapies, provide an update on an improved formulation of its Zantrene (RC220) product.
The announcement came 24 hours after the company detailed a new Drug Discovery Program, initiated in pursuit of the company’s ‘Beyond Zantrene’ strategy.
By the early afternoon, Race had budged upwards in share price by more than 4%, however, this was not enough to bring it out of the red.
Race is currently trading at a 44% decrease in share value in the year so far, and is 29% down in both its sector and compared with the wider market benchmark over the past 12 months:
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Race’s Zantrene (RC220) update
The latest announcement by Race pertained to its Zantrene (RC220) drug, more specifically, an improvement on its formulation which better caters for peripheral — arm or leg vein — IV delivery in patients.
This new discovery, led by Dr Benjamin Buckley and the University of Wollongong, proposes a simpler alternative for clinicians and an optimal choice for patients suffering from solid tumours.
It could mean that invasive central venous catheters used in many types of tumours, melanomas, and cancers will no longer be required, improving quality of life and lessening pain for many patients.
The improved RC220 also suggests a simpler, more rapid treatment without use of expensive oncology equipment, thus making it a desirable commercial alternative.
Race will first need to enter necessary clinical trials, however, the company admitted a minority of solid tumour patients have been willing to take part in the trials so far.
Nevertheless, a contract has been signed with Societal for FDA Good Manufacturing Practice (cGMP) standard, which is required for clinical trials.
Dr Daniel Tillett, Race’s CSO stated:
‘The development of the RC220 IV formulation is a major advance for Race. The chemical properties of Zantrene make developing a peripheral formulation highly complex and challenging. I am extremely proud of the Race team and our collaborators in developing the new RC220 formulation and believe this is a pivotal step in bringing the promise of Zantrene to clinical and commercial reality.’
CMO Dr David Fuller added:
‘The availability of a peripherally administered formulation of Zantrene is a major step forward and will allow Race to more effectively explore multiple opportunities in the solid tumour and cardioprotection space.’
RC220 is anticipated for delivery later in Q2 23 at the cost of US$611,900 in contracts, and a new international patent is to be submitted even earlier.
Interestingly, Race alluded to delaying the patient submission ‘for as long as possible’, to maximise the ‘effective on-patent life of RC220 and hence its future commercial value’.
RAC to grow ‘Beyond Zantrene’
Race has begun the process in screening fragments in a program aimed at discovering new novel drugs within areas of cancer and other complex diseases.
The Monash Fragment Platform has been contracted for furthering research and testing, incurring a total cost of $286,786, which the company believes can be 43.5% returned with the R&D Tax Incentive.
Phil Lynch, Race’s CEO, commented:
‘Addition of new FTO inhibitors to Race’s drug pipeline creates major value as it grows Race ‘Beyond Zantrene’ and positions us as a world leading RNA epitranscriptomics pharma company.’
Race is continuing work at the University of Wollongong to further Zantrene variations and improvements, with the intention to create an oral, less frequent formulation.
Investors will be updated on the progress of these activities in the future.
Let’s talk lithium
Turning from the medical field for a moment, did you know eight of the 10 best-performing stocks on the All Ordinaries in 2021 were lithium stocks?
Lithium stocks haven’t fared as well in 2022, with many of last year’s high-flyers trading well below their 52-week highs.
The easy money has already been made; it seems.
So does that make it too late to consider the lithium sector?
Not necessarily…
Two of our experts recently profiled three Australian lithium stocks they think are being overlooked by the wider market.
Click here to find out what this means.
