Race Oncology Ltd (ASX:RAC, OTC:RAONF) made progress on the clinical and corporate fronts in the most recent quarter, boasting a cash runway of $17.19 million as of June 30 – a $1.03 million increase on the previous quarter.
The increase was primarily driven by the exercise of bonus options by shareholders, which raised $5 million in new capital.
Milestone studies
During the quarter, Race achieved a milestone with the completion of RC220 bisantrene non-clinical Good Laboratory Practice (GLP) safety and pharmacology studies.
This step, alongside the cGMP manufacturing of RC220 in the previous quarter, paves the way for new human clinical trials expected to commence later this year.
The biotech had some wins on the regulatory front too, with the US Food and Drug Administration (FDA) extending Orphan Drug Designation (ODD) for Acute Myeloid Leukaemia (AML) and Rare Paediatric Disease Designation (RPDD) for paediatric AML to RC220 bisantrene.
Positive preclinical results
The quarter also saw positive preclinical results, with RC220 bisantrene showing that it has an enhanced capacity to kill a broad range of cancer cells when combined with decitabine and carfilzomib.
This finding extends the potential utility of bisantrene beyond its established use with anthracyclines as a cardioprotective anticancer agent.
Race has also moved towards initiating the first Phase 1a/1b human clinical trial of RC220 bisantrene in advanced solid tumour patients where doxorubicin use is indicated.
New clinical partner
George Clinical was appointed as the Clinical Research Organisation (CRO) to support the trial, and further updates on the trial’s progress are expected throughout the second half of 2024.
On June 6, Race thanked shareholders for their strong support of the bonus options offer, which resulted in the issuance of 6,713,931 new RAC shares and raised over $5 million in new capital.
Other notable developments include the appointment of Dr Rodney Cusack as Senior Scientist and Sharon Sampath as Clinical Project Manager, both bringing extensive experience in their respective fields to support Race’s ongoing clinical and preclinical programs.
Financially, Race reported a net increase in cash reserves, with cash inflows from option conversions and a continued reduction in administrative costs contributing to the positive cash position.
Payments to related parties during the quarter amounted to $111,000, comprising salaries and superannuation for an executive director and board fees for non-executive directors.
Race Oncology remains committed to advancing its flagship asset RC220 bisantrene to address high unmet needs in oncology, with a focus on anthracycline combinations to deliver cardioprotection and enhanced anticancer activity in solid tumours.
The company is also exploring the potential of bisantrene in the m6A RNA pathway, following research identifying it as a potent inhibitor of the FTO protein, a driver of various cancers.
"Highly productive"
CEO Dr Daniel Tillett said: “This quarter has been highly productive with major progress made in bringing RC220 bisantrene to the clinic, aided by extension of US FDA ODD and RPDD to RC220.
“We continue to discover new opportunities to use bisantrene in combination with current standard of care anticancer drugs as we advance RC220 to the clinic in 2024.
“All this success has been made possible by the dedication and skill of the whole team at Race.
“I wish to also extend special thanks to all the shareholders who have continued to generously support Race via exercising the bonus options. I also warmly welcome our new team members Dr Rodney Cusack and Sharon Sampath.”