Race Oncology Ltd (ASX:RAC, OTC:RAONF) reported a strong start to FY26, ending the quarter with $11.27 million in cash and equivalents. The company emphasised disciplined spending, with >78% of outlays (~$2.3 million) directed to R&D and drug manufacturing. Early option conversions contributed $0.6 million during the quarter, with a further $3.6 million received by October 24, leaving the company well-capitalised to fund announced programs through CY2026.
Highlights
- Breakthrough Composition of Matter Intellectual Property (IP) filed, with bisantrene discovered to consist of three photoisomers with different biological and anticancer activities, which rapidly interconvert upon exposure to visible light
- Advance of the Phase 1 clinical trial of RC220 (RAC-010) with two patients safely treated with RC220 as a single agent and in combination with doxorubicin
- Ongoing disciplined capital management, in parallel with early conversion of options by shareholders, provides cash balance of $11.27m at quarter end with an additional $0.6m raised from early option conversions during the quarter.
“This quarter saw the company share with our shareholders the exciting discovery that bisantrene rapidly photo-isomerises upon exposure to visible light. The skilful follow-up of minor data anomalies by the Race preclinical team has enabled Race to file three patent applications over the active (E,E)-bisantrene isomer which, if granted, will provide Race with 20 years' composition of matter protection,” RAC CEO Dr Daniel Tillett said
“Being able to reset the patent clock on a nearly 50-year-old drug that is at Phase 3 readiness is remarkable and a testament to the quality of scientists working at Race. I would like to commend the new clinical team for their outstanding efforts to advance the multi-site international Phase 1 cardio-protection/anticancer RC220 trial. This is not a simple trial, and the clinical team has shown extraordinary perseverance and effort in ensuring its success.
“Finally, I would like to thank the patients who have chosen to participate in our trials and our shareholders for making it all possible. Through inspired science, hard work, and great support I believe we can make a real difference to the many cancer patients who need better and safer treatments.”
Clinical progress
The Phase 1 cardio-protection/anticancer study of RC220 (RAC-010) advanced. Two patients were safely treated — first as single-agent RC220 and then in combination with doxorubicin — at Southside Cancer Care Centre (NSW).
Recruitment infrastructure broadened materially: Queen Mary Hospital (Hong Kong) was activated following local approvals, and additional Hong Kong and South Korea sites received ethics and regulatory clearances.
Race expects increased recruitment in Q2 FY26 as up to five more sites come online across Hong Kong and South Korea, supported by MFDS IND approval in Korea late in the quarter.
Intellectual property & science
A significant composition-of-matter breakthrough was announced: bisantrene comprises three photoisomers with distinct activities that rapidly interconvert under visible light.
Race filed three patents covering the composition, manufacture, formulation and use of the active (E,E)-bisantrene isoform — potentially resetting patent life with up to 20 years of protection over the API in RC220 and opening a pathway for RC110 to move toward a pivotal AML Phase 3 (partner-dependent).
Post-quarter, the company disclosed mechanistic data showing (E,E)-bisantrene acts via RNA/DNA G-quadruplex binding, down-regulating oncogenic programs (including MYC and telomerase), indirectly inhibiting topoisomerase II, and increasing m6A in RNA — findings presented at ESMO 2025.
Stakeholder engagement
Race increased investor outreach via briefings (Hobart), conference appearances (Bioshares Biotech Summit; TechKnow Invest), and a well-attended webinar (250+ investors) elaborating on the chemistry, patent strategy and commercial implications of (E,E)-bisantrene.
Outlook & priorities
Near-term focus is on accelerating RAC-010 enrolment across newly activated Asian sites;
- prosecuting the (E,E)-bisantrene patent family;
- aligning CMC to deliver controlled active-isomer dosing; and
- leveraging the clarified G-quadruplex mechanism to refine clinical positioning, partnership dialogues and potential pivotal planning for AML.
The cash runway, bolstered by post-quarter option conversions, supports these initiatives into CY2026.