Race Oncology Jumps 23% as Researchers Uncover Key Mechanism Behind Lead Cancer Drug

Race Oncology Soars 23% on Breakthrough Discovery Targeting MYC

Race Oncology (ASX: RAC) opened strongly, rising 23 percent after releasing new insights into how its lead cancer drug, bisantrene (RC220 Bisantrene, RCDS1), actually works inside the body.

The company’s researchers found that the drug attaches to and stabilises DNA and RNA structures known as G-quadruplexes (G4s). These are 3D knots in our genetic code that regulate how certain cancer-driving genes are switched on or off. By binding to these G4 strands, bisantrene can effectively block the activity of cancer-promoting genes such as MYC, a well-known master regulator of cell growth.

Under normal conditions, MYC supports healthy cell growth and replication. But in cancer, MYC can become overactive or mutate, driving uncontrolled tumour survival and expansion. It is estimated that MYC is in more than 70 percent of human cancers. By stabilising G4s, bisantrene prevents MYC from fueling this uncontrolled growth, cutting off a critical pathway for cancer progression.

What makes this breakthrough significant is that targeting MYC directly has been one of oncology’s hardest challenges. For decades, drug developers have struggled because MYC does not have a clear “binding pocket” for therapies, and it interacts strongly with other DNA strands and proteins inside the cell nucleus. This has made it a notoriously difficult target to disrupt. Race Oncology’s approach offers a novel pathway to achieve what many have tried and failed to do — indirectly suppress MYC activity by stabilising the G4 structures it depends on.

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Race Oncology Boosts Commercial Outlook with Breakthrough RCDS1 Discovery

Race Oncology’s discovery of the precise mechanism of action for RCDS1 significantly improves the drug’s development outlook and commercial appeal. With this knowledge, researchers can now identify the cancer types most likely to respond and design effective drug combinations, avoiding the costly and time-consuming trial-and-error approach.

 Importantly, regulators such as the FDA favour drugs with a clearly defined mechanism, as it improves predictability, enhances patient safety, and guides appropriate use. For large pharmaceutical companies, this clarity is particularly valuable. Understanding exactly how a drug works reduces scientific risk, strengthens trial design, and increases the likelihood of forming commercial partnerships. Together, these factors improve RCDS1’s chances of regulatory approval and position Race Oncology for stronger long-term value creation.

The Investor’s Takeaway for Race Oncology 

Valuing a biotech company is always challenging, as there are many factors that can drive exceptional performance but also destroy value quickly. Investors in the sector are well aware of how sensitive biotech stocks can be to catalysts, both positive and negative — as demonstrated recently with Telix. For Race Oncology, which is not yet profitable, revenue multiples provide a useful lens to assess valuation. Analysts forecast revenue of just AUD 2.6 million in FY26, representing a 50 percent decline from current year expectations. At the same time, the stock is trading on a revenue multiple of around 86x, a level that reflects heavy investor optimism. 

This suggests the market is pricing in significant future growth potential rather than today’s fundamentals. As is typical in biotech, the pathway to meaningful revenue and profitability is long and uncertain, meaning the valuation is highly dependent on the success of clinical progress and commercial partnerships.