Who is Race Oncology (ASX: RAC)? DYOR on Anti-Cancer Innovation and Heart Protection.
- Noel Ong
- 7 minutes ago
- 6 min read
Announcement
Race Oncology Limited (ASX: RAC) has taken another important step forward in its mission of “protecting patients while optimising their cancer treatment.” The company has now dosed the first patient in its Phase 1 trial of RC220, the reformulated version of bisantrene designed to deliver both anti-cancer efficacy and cardioprotection. With a strong legacy of clinical data, modern reformulation, and global trial expansion underway, Race is entering a period of significant value inflection points across 2025.
Original Bisantrene - Anti-Cancer and Cardio Protection.
A highly effective, but commercially unviable anticancer drug.
Approved in France in 1988.
Excellent patient outcomes. Complete response rates above 40% as a salvage drug in leukaemia.
In a large Phase 3 breast cancer trial, bisantrene equalled standard of care, but with less heart damage and hair loss.
Lederle (Pfizer) ended commercial development after more than 50 trials due to the difficulty administering the drug to patients.
Highlights
1.0 First Patient Dosed in Phase 1 Trial
RC220 administered safely in Australia with no adverse events, including phlebitis.
Stage 1 to recruit up to 33 patients, with international sites in Hong Kong and South Korea coming online in 3QCY25.
Trial endpoints include safety, optimal Phase 2 dose, VO₂peak (cardiac fitness), m6A RNA levels, and anti-cancer efficacy.
2.0 RC220 – Next-Generation Bisantrene
Reformulated for easier administration and supported by 20 years of IP protection (Figure 1).
Figure 1: RC220 is a clinically & commercially attractive formulation with long IP life (source: RAC)
RC220 builds on decades of data showing that doxorubicin alone can achieve objective response rates of 15% to 40% in advanced and metastatic cancers across many common tumour types. By pairing with RC220, Race seeks to preserve and enhance these outcomes while mitigating the cardiotoxicity that has limited doxorubicin’s long-term use.
Backed by >1,500 patients’ records and strong preclinical validation.
Demonstrated ability to improve doxorubicin’s cancer-killing activity in 85% of 143 tested cancer cell lines.
Dual action: stronger tumour response and protection against cardiac damage.
3.0 Addressing Chemotherapy’s Major Weakness
Anthracyclines like doxorubicin remain cornerstone therapies but carry high risk of permanent heart damage.
Preclinical data show RC220 protects cardiac function, reducing fibrosis and improving outcomes compared to doxorubicin alone (Figure 2).
Figure 2: RC220 = Protecting the Heart (source: RAC)
VO₂peak incorporated as a trial measure, addressing limitations of current cardiac monitoring standards (Figure 3).
Figure 3: VO₂peak - Gold Standard in Cardiac Function (source: RAC)
4.0 Compelling Clinical Evidence
Two recent Sheba AML trials reported 40% response rates in heavily pre-treated patients (Figure 4).
Figure 4: Recent Trials Confirm RC220’s Effectiveness (source: RAC)
RC220 has potential across multiple tumour types, including breast, lung, ovarian, prostate, and pancreatic cancers.
5.0 Market Opportunity
Global anthracycline use expected to grow at 6.6% CAGR to 2030, creating a market of >20m doses annually (Figure 5).
Figure 5: Growing Reliance on Doxorubicin in Cancer Care (source: RAC)
RC220 cardioprotection + anti-cancer therapy estimated at >US$5B/year sales potential.
6.0 Share Price Finds Support, Eyes Next Catalyst
Race Oncology’s share price in 2025 has reflected both anticipation and caution around its clinical progress. After easing from January highs near A$1.35 to an April low of ~A$0.95, the stock rebounded strongly in May to retest A$1.38 before settling into a mid-year consolidation range between A$1.10–1.25. At its current level of ~A$1.19 (Figure 6), RAC appears to be holding firm above its lows, with upcoming trial updates likely to determine whether momentum resumes toward the upper end of the range.
MST Access (a research division of MST Financial Services) values Race Oncology at A$6.37/share (current price A$1.19; market cap A$206.75M), highlighting the significant valuation gap relative to its long-term potential.
Figure 6: RAC Share Price as of 18 August 2025 (source: ASX)
Next Steps
Race Oncology will continue dosing patients in Australia while activating sites in Hong Kong and South Korea later in 2025. Data readouts from the open-label Phase 1a/b trial are expected progressively, with particular focus on cardiac outcomes (VO₂peak) and early efficacy signals. Following completion, the company plans a placebo-controlled Phase 2 trial in breast, lung, and ovarian cancers.
Upcoming catalysts include the expansion of trial sites internationally, the filing of an IND with the US FDA, and the initiation of Phase 2 trials in targeted cancers
Samso Concluding Comments
This is our first note on Race Oncology, and it does look like it's a decent story. RAC is currently sitting on an AUD $204M market capitalisation, which is a number that would give most micro-cap retail investors heartburn as they are usually seeking a much lower value proposition for the upside. However, as I cover more non-mineral resource companies, I am learning that a rising market is very different when you are building a revenue-driven model.
For RAC, at this moment, the path is to unlock the potential of bisantrene, and RC220 represents the most advanced step yet. It will be interesting to see how the development of creating and maintaining the dual benefit plays out—enhancing cancer treatment efficacy while protecting the heart, a challenge that has long limited the use of anthracyclines. This is not simply about a reformulation; it is about reshaping how cancer care can balance survival and survivorship.
Most of us have known someone who is in the predicament of being a patient of some form of cancer, so the path to finding a solution to help these patients will no doubt prove to be highly rewarding for shareholders. It goes without saying that the rewards for RAC shareholders will far exceed the current valuation.
The commencement of patient dosing in the RC220 Phase 1 trial is a critical milestone. It provides investors with tangible evidence that the program is advancing from concept to clinic. With international trial expansion, FDA engagement, and a Phase 2 program on the horizon, the company is positioned for meaningful news flow that can drive sentiment and valuation.
Race Oncology’s valuation gap, with MST Access setting a target of A$6.37/share against the current A$1.19, underscores how much is riding on trial execution and results. For long-term investors, this gap highlights the asymmetric opportunity—significant upside potential, but always within the context of the risks inherent in drug development.
At Samso, we continue to emphasise that the real test lies in the data. Should RC220 deliver on its promise, Race will not only de-risk its asset base but also carve out a unique place in the oncology market. For now, the journey is about building confidence, step by step, through clinical validation.
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