Through an A$5.25 million boost to its bank balance, Race Oncology Ltd (ASX:RAC, OTC:RAONF) will continue the development of its lead asset, bisantrene – a small molecule chemotherapeutic.
The company received A$5,254,557 under the Australian Government’s Research & Development (R&D) Tax Incentive for the financial year ending June 30, 2024.
This scheme, administered by the Australian Taxation Office (ATO), provides a refundable tax offset of up to 43.5% for eligible R&D expenditure to encourage investment in innovation.
Solving unmet patient needs
“The Australian Government’s R&D tax incentive program plays a critical role in helping Australian research-intensive companies to innovate," Race CEO and MD Dr Daniel Tillett said.
"This incentive is especially important in helping biopharmaceutical companies such as Race Oncology solve significant unmet needs for patients.
"We are grateful to receive this refund and look forward to utilising the funds to accelerate the clinical development of RC220."
The incentive follows AusIndustry confirmation on September 2, 2024, regarding the eligibility of RAC’s overseas R&D activities. The company was granted an R&D Tax Incentive Advance and Overseas Finding Assessment, allowing for a 43.5% tax rebate on overseas R&D expenses.
The approval covers activities undertaken from July 1, 2023, to June 30, 2026, and amounts to a potential total of $20,081,627 over the three-year period.
These developments enhance Race’s funding capacity for domestic and international R&D activities, strengthening its ability to advance its projects under favourable financial conditions.
Demonstrated therapeutic benefits
Bisantrene has a rich and unique clinical history with demonstrated therapeutic benefits in both adult and paediatric patients, a well-characterised safety profile and compelling clinical data demonstrating an anticancer effect and less cardiotoxicity over certain anthracyclines, such as doxorubicin.
Race is progressing the development of a reformulated bisantrene (RC220) to address the significant unmet needs of patients across multiple oncology indications.
The company is focusing its clinical efforts on anthracycline combinations, aiming to deliver cardioprotection alongside enhanced anticancer efficacy in solid tumours. Additionally, Race is exploring RC220 as a low-intensity treatment option for acute myeloid leukaemia (AML).
Proactive caught up with Dr Tillett recently to discuss the company’s 2024 achievements, including submitting an ethics approval application for its Phase 1 RC220 clinical trial.
In parallel, Race is investigating bisantrene’s impact on the m6A RNA pathway, building on independent research from City of Hope that identified bisantrene as a potent inhibitor of FTO (fat mass and obesity-associated protein). Dysregulation of the m6A RNA pathway has been widely documented in peer-reviewed studies as a driver of various cancer types.
To advance its efforts, Race Oncology has formed collaborations with several leading institutions, including Astex Pharmaceuticals, City of Hope, MD Anderson Cancer Center, Sheba Medical (TASE:PMCN) Center, the University of North Carolina School of Medicine, the University of Wollongong and the University of Newcastle.
The company is also actively seeking partnerships, licensing opportunities, or a commercial merger and acquisition to accelerate global patient access to bisantrene.