What sent the Race Oncology (ASX:RAC) share price rocketing 20% today?

The Race Oncology share price fired up 15% higher today with nothing new reported. We check out the latest quarterly update for some details.

| More on:
Investor riding a rocket blasting off over a share price chart

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Race Oncology Ltd (ASX: RAC) share price rocketed 20.98% today, closing the day at $2.48 per share.

Race Oncology Ltd (RAC) is an Australian pharmaceutical company with developments in the cancer field. The company produces a chemotherapy drug called Bisantrene, which has been the subject of more than 40 phase II clinical studies.

Today's gains cap off a big week for the Race Oncology share price, which has boosted more than 45% in the past 5 days.

While there was no news out of Race Oncology today, its quarterly report was released on 27 January 2021. We take a closer look at the company's recent performance. 

A summary of the Race Oncology financials

In its most recent quarterly report for the period ended 31 December 2020, Race Oncology reported cash and equivalents of $5.58 million, compared with $5.66 million at 30 September 2020. 

Net outflows were supported by a $262,000 cash injection received from conversion of options and receipt of the $387,000 R&D tax rebate. 

Operating activities totalled $728,000, a decrease of $115,000 from the prior quarter.

Race Oncology currently has a market capitalisation of $275.7 million with 129.5 million shares outstanding.

Race Oncology announces new 'three pillar' strategic plan

Race Oncology also used the quarterly update to announce the company's new 'three pillar' strategic plan.

The concept behind the plan is to maximise the potential down-streaming from activities related to the company's Bisantrene treatment. This includes license applications or corporate sales to scaled pharmaceutical companies.

The company believes the new strategy will "significantly expand" opportunities for Bisantrene while protecting its legacy applications.

Commenting on the new strategy, Race Oncology CEO Phillip Lynch said:

The team was excited to share the new Three Pillar strategy at the recent Annual General Meeting. It is the result of a comprehensive review of our core asset, assessing the competitive and commercial environment, and aligning on a goal to actively pursue Bisantrene's potential as a potent inhibitor of FTO and precision oncology agent. This decision has the potential to unlock significant value for shareholders and the team is progressing the required assessments to ensure we maximise the probability of success.

FTO stands for fat mass and obesity-associated protein. The company continues to investigate Bisantrene's use as an FTO inhibitor.

The Race Oncology share price has exploded more than 780% higher over the past 12 months.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

These ASX 200 shares could rise 30% to 50%

Brokers have good things to say about these cheap shares.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Share Market News

Record CBA share price and Iran-Israel ceasefire lift ASX 200 financials to new peak

ASX financial shares led the 11 market sectors last week, gaining 1.82% and reaching a record high.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

10 Aussie stocks to buy in FY 2026

Let's see which shares analysts think could be buys in the upcoming financial year.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

watch
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »