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Race Oncology (ASX:RAC) continues three-pillar strategy in June quarter

Health Care
ASX:RAC      MCAP $215.6M
29 July 2021 12:30 (AEST)
Race Oncology (ASX:RAC) - Managing Director and CEO, Phillip Lynch

Source: Race Oncology

Race Oncology (RAC) initiated two clinical programs in the June quarter for Acute Myeloid Leukemia (AML).

At the end of last year, the company detailed its “three-pillar” strategy to develop its cancer drug, Bisantrene. The first pillar involved advancing the drug as a strong inhibitor of the fat mass and obesity associated protein, FTO.

As part of the strategy, Race announced it would partner with the University of Newcastle for a pre-clinical study to explore the use of Bisantrene in melanoma and kidney cancer. The trial began immediately and results are expected within 12 months.

The second pillar involves receiving the preliminary results from the trial and a decision to progress more animal studies. Pillar three will involve updates on the AML clinical programs including first patient treatment.

Soon after, the company raised $5.4 million through a an oversubscribed placement to support the three-pillar strategy and further develop Bisantrene.

Significantly, Race also signed an agreement with clinical research company, Parexel, to manage its phase two AML program in Australia. This study is focused on AML patients with the extramedullary form of the disease which currently doesn’t have any approved treatment options.

Race CEO Phillip Lynch commented on the quarterly activities.

“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 AML setting. Importantly, we added critical appointments to the team to better support our ability to execute the breadth of our plans.”

In terms of expenditure, Race spent $2.8 million on operating activities — most of which was used for research and development.

The company generated $5.6 million in financing activities and ended the quarter with $9.3 million in cash.

Company shares were down 1.41 per cent to trade at $3.49 at 11:33 am AEST.

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