Danile Tillet (CEO) and Peter Smith (executive chair) of Race Oncology (ASX:RAC) hosted a webinar update after hours on Wednesday of last week.

ASX:RAC - Race Anticancer MOA Webinar

In the webinar they explained the anti-cancer method of action of Bisantrene EE, which was all very interesting if in parts very technical and beyond my understanding.

However in summary and in RAC’s own words:

"The discovery of the primary anticancer mechanism of action of RCDS1 provides several benefits. Knowing how an anticancer drug works at the molecular level makes it much simpler to identify the cancer types (or sub-types) that are most likely to respond to the drug. This knowledge extends to aiding the identification of drug combinations that are likely to be synergistic when used together.  Regulators prefer the MOA of new drugs to be included in regulatory submissions since it improves patient safety by helping predict side effects, guides appropriate use, and identifies the patients most likely to benefit. An important additional benefit to knowing the MOA of RCDS1 is it enables the development of pharmacodynamic biomarker tests that are predictive of a patient’s response to treatment. New cancer drugs with an associated biomarker test are more than twice as likely to obtain regulatory approval. Finally, understanding the MOA of a drug increases the probability of successful pharma partnering – put simply, large pharma has an expectation that their partners understand how any new drug works because this reduces scientific and clinical risk, improves trial design, and aligns with regulatory expectations.”

Both Daniel and Peter throughout the webinar were like the cat who had licked the cream, as you might expect given how far they have come.

So what have RAC got:

1. An “old” cancer drug Bisantrene that has proven efficacy and was always interesting because of its cardio protection properties.
2. Bisantrene has been reformulated as RC220 to remove the old problems with crystallising in the human vein
3. A successful Phase 2 result using Bistantrere in combination with decitabine to treat Acute Myeloid Leukemia.  RAC claims it is Phase 3 ready for AML.
4. RAC have worked out Bisantrene has isomers and have isolated the active and light sensitive (EE) version. Potentially this will give a 20 year patent life to Bisantrene EE. A big deal.
5. RAC claim to have worked out the method of action of the drug. 
6. Current phase 1 trials on solid tumours in combination with doxorubicin are ongoing. Initial safety readouts have been positive.

All valuable, particularly at points 4 and 5 above. Just how valuable who knows. The (likely overexcited) market is currently giving RAC a value of around $800m.

In the next two weeks RAC will be releasing more information on the cardio protection mechanism and will be meeting Hong Kong shareholders next week. Around 3 years ago when it was becoming obvious Neuron was onto something John Pilcher engaged Jeffries (I think) to advise the company. What he as announcing was he was frightened NEU would get taken out prematurely. Who knows who has been doing all the buying in the last 6 weeks that has seen the RAC share price triple.  However with Daniel owning 10% and the recent share price run up maybe Daniel does not feel as vulnerable as NEU once did.

Perhaps better buying market opportunities this week as another chapter in the China/US war plays out. When the market does inevitably get the heebies a biotech speculative like RAC will likely be wacked pretty hard. And the problem will be, it will be hard to buy it when there are attractive companies that are earners and less risky that will also be discounted. Because everything about markets is a story of relative values.  

Race Oncology (ASX:RAC) market cap $700m @ $4:00/share, announced this morning they had worked out the mechanism of action of their anticancer drug(E,E)- Bisantrene.  I am not across the science.   

However as per the announcement, what is significant: “Rather than having to blindly test millions of possible combinations of different drugs in hundreds of cancer types, knowing the MOA allows the rational selection of the likely best drug combinations and cancers to treat.”  In other words, RAC have further derisked the drug.

What is known about RAC:

• Long history of the understanding the lead drug(E,E)- Bisantrene
• November 2023 favourable Ph2 results in a combination therapy in the treatment of acute myeloid myeloma. Six of the 15 evaluable patients (40%) in the Phase 2 efficacy stage responded to the treatment.
• Last month RAC revealed a new understanding of Bisantrene isomers, and knowledge of the active isomer is (E,E)-Bisantrene
• The above has permitted a patent application that if realised (very likely) will result in 25 years of protection.
• Management seem pretty levelled headed and experienced.  Executive Chair Peter Smith (ex Alchemia) has been around for a while.   CEO/MD Dr Daniel Tillet owns 10% and director Megan Baldwin (ex Opthea) is likely to be a brake any board over exuberance.

As at 30/6/25 RAC had $13m in the bank and was spending around $10m/yr.

Essentially it is a stage 3 ready cancer drug company, undertaking Ph 1 trials itself with potentially a 20 year plus patent life (to be confirmed in next 6 wks).  Like all these drug development companies it will be a long road with extended periods with seemingly not much happening and plenty of opportunities for some shareholders to become pissed off, resentful and angry.

RACE (ASX:RAC) (m/c $480m + 33m options) has had a recent run since they announced earlier this month they had found three isomers of their lead cancer drug Bisantrene.  They have now filed a patent for the EE isomer, which is the efficacious of the three.  The isomer change is caused by light and the EE isomer degrades by the minute when exposed to light. This is the big news.  

By way of background Bisantrene has been around for 40 years as a cancer treatment and was at one point approved for use in France 1988. However due to the difficulty of administration was given up on by the patent owner Pfizer.   

It has two key properties – effective at killing cancer cells whilst causing minimal damage to the heart and blood vessels.

They had recent readout of a Phase 2 study using Bisantrene (RCA name RC110) in Acute Myeloid Leukemia. The trial  was done in Israel and the results were significant with a 40% response rate.  Plus there is all the historical data – not useful now for progressing to regulatory approval, but very helpful just the same.

RCE are now testing the EE Bisantrene (RC220) in Ph 1 combination trials in Australia, Hong Kong and South Korea.

On the webinar last night CEO Daniel Tillet was asked if the EE isomer was used on the recent successful RC110 Ph 2 trial. He replied in the affirmative.  

There is two conclusions from this: RCE has known of the existence of the EE isomer for some time or Daniel is not being altogether straightforward.  

Whatever, the point being for all the trials from 40 years ago and possibly the AML Ph 2 trial, may have understated the efficacy of Bisantrene due to researchers not understanding the light sensitivity of the drug.   

Further assuming they are granted the isomer patent, RCE will have 20 years protection for a drug that has promising Ph 2 results. Or put another way is Ph 3 ready.  In other words they already have something of real commercial value.   

Big news and the way RACE tells it this isomer discovery was quite unexpected.