On Tuesday, the broader healthcare sector in Australia is experiencing a downturn, with the S&P/ASX 200 Health Care Index (ASX: XHJ) down 0.46% and the S&P/ASX 200 Index (ASX: XJO) declining by 0.96% in early trading. However, two healthcare stocks on the ASX are bucking the trend and seeing gains due to recent positive developments.
Race Oncology Ltd (ASX: RAC)
Race Oncology's shares have risen by 2.18% to $1.64 following an encouraging update on its Phase 2 trial of Bisantrene for treating relapsed or refractory acute myeloid leukaemia (AML). The clinical-stage biopharmaceutical company is testing Bisantrene, a small-molecule chemotherapeutic drug, in cancer treatments.
The recent trial results from Sheba Medical Centre in Israel have been particularly promising. The Phase 1b/2 trial of RC110 Bisantrene met its predefined efficacy criteria, with 40% of patients showing a response to the treatment. Out of these patients, five achieved complete responses and one a partial response, surpassing the trial's efficacy goal of at least three complete responses.
The positive outcomes from this trial have bolstered Race Oncology's plans to initiate a new Phase 1/2 investigator-sponsored AML trial using a reformulated version of Bisantrene, known as RC220. Year-to-date, Race Oncology's shares have surged by 92.95%, and they have increased by 34.43% over the past 12 months.
Alcidion Group Ltd (ASX: ALC)
Alcidion Group's shares have gained 2.56%, trading at 8 cents each, following the release of its quarterly activities report. The technology solutions developer reported record cash receipts of $18.6 million for the fourth quarter of FY24, up from $17.6 million in the previous corresponding period.
The company has also benefited from cost-saving measures, reducing staff costs in Q4 to $6.3 million from $8.1 million in the prior period. Alcidion's unaudited revenue for FY24 is projected to be between $37 million and $37.5 million, with approximately 74% coming from annual recurring revenue and 26% from services revenue.
Alcidion Group Managing Director Kate Quirke highlighted the strong performance in cash collections, which resulted in positive cash flow for both the quarter and the second half of the fiscal year. This financial stability is expected to position the company well for the upcoming financial year. Despite these positive results, Alcidion's shares are down 1.25% year-to-date and have fallen by 39.23% over the past 12 months.
Both Race Oncology and Alcidion Group have demonstrated resilience and positive momentum amidst broader market challenges, reflecting their respective achievements and strategic advancements in the healthcare sector.