Race Oncology Limited (ASX: RAC) has released its half-year financial report, demonstrating a significant turnaround in profitability and promising advancements in clinical trials.
For the six months ended December 31, 2024, the company recorded a net profit after tax of $502,163, marking a considerable improvement over the $5,663,158 loss reported in the same period the previous year. This profit was driven by increased revenues, including a $5,254,557 research and development tax incentive.
Race Oncology’s clinical trials have also made significant progress. The Phase 1b/2 trial of bisantrene in combination with other drugs in relapsed or refractory acute myeloid leukemia (R/R AML) has concluded successfully, achieving its primary endpoint for efficacy. Six of the 15 evaluable patients responded to the treatment, with three of them being able to bridge to a potentially curative stem cell transplant.
The company has also submitted a provisional patent application for the RC220 bisantrene formulation, providing exclusive IP protection for the compound until October 2044. Additionally, Race Oncology has identified 39 unique FTO protein-binding molecules, aiding the development of novel mRNA epigenetic pathway drugs.
Race Oncology has made several key appointments and initiated a board renewal. Dr. Megan Baldwin, an experienced biotechnology executive, has joined the board as a non-executive director. The company has also received a positive determination from AusIndustry regarding the eligibility of overseas R&D activities, resulting in an R&D Tax Incentive Advance and Overseas Finding Assessment for $20,081,627 over three years.
Commenting on the results, Managing Director Dr. Daniel Tillett said, “The operating profit for the six months ended 31 December 2024 was $502,163 or $1,380,713 excluding share-based payments (a non-cash expense). As at 31 December 2024, the Company had $18,781,885 in cash reserves (compared with $17,188,827 at 30 June 2024).”
