Racura Oncology (RAC) H2 2024 earnings summary

Executive summary

• Advanced RC220 bisantrene to readiness for first-in-human clinical trials, completing manufacturing, toxicology, and safety studies, and appointing George Clinical as CRO.

• Achieved significant preclinical results showing potent anticancer and cardioprotective activity of bisantrene, both as a single agent and in combination therapies.

• Received Orphan Drug Designation and Rare Paediatric Disease Designation from the FDA for RC220 bisantrene, potentially enabling regulatory and commercial advantages.

• Strengthened advisory boards with leading clinicians and scientists, including appointments post-reporting period.

• Successfully concluded a Phase 1b/2 AML trial with RC110 bisantrene, achieving a 40% response rate in relapsed/refractory AML patients.

Financial highlights

• Net loss after tax for FY2024 was $13.82 million, compared to a $9.92 million loss in FY2023.

• Revenue comprised $832,577 in interest and $4,003,470 in other income, mainly from the R&D tax incentive.

• Cash and cash equivalents at year-end were $17.19 million, down from $21.52 million at FY2023 end.

• Net cash used in operating activities was $9.55 million, an improvement from $10.65 million in FY2023.

• No dividends declared or paid for the year.

Outlook and guidance

• Well-funded to undertake a company-sponsored Phase 1a/b trial in solid tumours and an investigator-sponsored Phase 1/2 trial in AML, following a $5 million capital raise in June 2024.

• All preclinical and manufacturing activities for RC220 required for clinical trials were completed in FY2024.

• Anticipates updates on ethics approval, site initiation, and first patient enrollment in coming months.