Annual Report to shareholders
Released
Released
Announcement PDF
ASX: RAC
2021
Annual Report
Targeting Zantrene® towards
better cancer outcomes
Corporate Directory
DIRECTORS
John Cullity – Non-Executive Chairman
Phillip Lynch – Managing Director and Chief Executive Officer
Daniel Tillett – Executive Director and Chief Scientific Officer
Mary Harney – Non-Executive Director
COMPANY SECRETARY
Peter Webse
REGISTERED OFFICE
Level 36, Gateway, 1 Macquarie Place
Sydney NSW 2000
Ph: +61 2 8051 3043
Website: www.raceoncology.com
AUDITOR
Hall Chadwick WA
283 Rokeby Road
Subiaco WA 6008
SECURITIES EXCHANGE LISTING
Australian Securities Exchange Limited
Level 40, 152-158 St Georges Terrace
Perth, WA, 6000
SHARE REGISTRY
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth WA 6000
Ph: +61 8 9324 2099
ASX Code – RAC
Race Oncology Limited
ACN 149 318 749
Contents
Chairman’s Letter
2
2021 Key Highlights
4
Directors’ Report
6
Auditor’s Independence Declaration
22
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
23
Consolidated Statement of Financial Position
24
Consolidated Statement of Changes in Equity
25
Consolidated Statement of Cash Flows
26
Notes to the Financial Statements
27
Directors’ Declaration
45
Independent Auditor’s Report
46
Corporate Governance Statement
50
ASX Additional Information
60
Annual Report 2021
1
Chairman’s Letter
It is my pleasure
to formally present
Race Oncology’s
Annual Report for
the period ended
30 June 2021.
Dear Fellow Shareholders
It’s been a hallmark year for
your company, marked by
two keystone highlights.
The first, in June 2020, was the fully independent
finding by a highly respected team at City of Hope
Hospital, that our drug, Zantrene® (bisantrene
dihydrochloride) was shown to be the most potent
known inhibitor of the Fatso/Fat Mass and Obesity
Associated Protein (FTO). FTO plays a central role in
the proliferation of cancer and this finding could lead
our drug toward commercial potential we would never
have previously considered possible.
The second was the release of our Three Pillar
strategy, which is designed to recognise and leverage
Zantrene’s value as both an FTO inhibitor - and as a
less cardiotoxic chemotherapeutic.
In addition to the two major highlights, Race’s
leadership capabilities and subject matter expertise
were enhanced with recent appointments while capital
management was strengthened via a targeted capital
raise that was oversubscribed. We also awarded our
loyal shareholders with a 1 for 20 bonus option to all
eligible shareholders in May 2021.
These opportunities and our activities have driven
a significant rise in our market capitalisation, as the
potential value that Zantrene offers cancer patients
has been recognised by many in the market.
2
Race Oncology Limited
The new Three Pillar strategy greatly expands the
opportunities that lie ahead for Race.
Pillar 1 seeks to build on the published City of Hope
(COH) findings around the FTO protein and its role in
regulating RNA translation and cancer progression as
reported in the June 2020 Cancer Cell publication by
Su et al. The Race team has embarked on an extensive
pre-clinical program in partnership with the University
of Newcastle, investigating Zantrene and its FTO
targeting activity in Acute Myeloid Leukaemia (AML),
melanoma, and clear cell renal cell carcinoma.
Pillar 2 builds on the known lower cardiotoxic
properties of Zantrene and its potential to be used in
chemotherapeutic settings more safely or adjunctively
to complement existing therapies. A pre-clinical
program is underway to determine Zantrene’s low
cardiotoxic mechanism of action and to guide its
appropriate clinical translation.
Pillar 3 leverages our long history in AML, working
again with Professor Nagler at Chaim Sheba Israel,
on a Phase 1b/2 R/R AML program using a novel
combination drug approach. We have initiated a
Phase 1b/2 clinical trial in Australia for patients with
extramedullary AML, which will use Zantrene in
combination with other standard of care drugs seeking
to improve patient outcomes as part of our pathway to
drug registration in the USA, and other markets.
We are extremely fortunate to maintain access to
an international network of advisors and expertise,
supplemented by a highly capable Board and
experienced Management team. Through the
year our Board enhanced its independence and
governance strength with the appointment of Ms
Mary Harney as a Non-Executive Director. The
management ranks were also boosted by the
appointments of Dr David Fuller as Chief Medical
Officer and Professor Michael Kelso as Principal
Scientist. Our CEO, Mr Phil Lynch, and CSO Dr Daniel
Tillett, continue to work effectively as a team in
leading the business and have made considerable
progress over the last year on many fronts.
Looking at our capital management, this financial
year shows a loss of $6.3m vs a loss of $3.8 m in
2020 reflecting additional investment in our clinical
and pre-clinical programs. Cash on hand as at 30
June 2021 increased to $9.3m versus the prior year’s
$1.7m, owing to our successful and oversubscribed
capital raise of $5.4m in March 2021, supplemented
by option exercises and continued diligence in
managing expenses. Race has full funding for all
current commitments and will continue to address
capital requirements on an as needed basis.
It’s been a transformative year for Race as we
continue to target and develop the many oncology
applications of Zantrene. Our expanded and highly
qualified team continues to pursue programs and
plans with a strategy that appropriately capitalise on
the risk/rewards on offer. We look forward to sharing
pre-clinical and clinical results in the new financial
year ahead, and to shaping our plans to ensure that
patients, potential pharma partners, clinicians, and
our investors, all participate in the potential that
Zantrene presents.
Dr. John Cullity
Non-Executive Chairman
Annual Report 2021
3
2021 Key Highlights
A pivotal period for Zantrene®
4
June 2020
July 2020
November 2020
February 2021
Impressive 40%
response in
Phase II AML trial
Race secures 4th US
patent for Zantrene®
Impressive preclinical Zantrene®
breast cancer results
Impressive preclinical Zantrene®
ovarian cancer results
June 2020
September 2020
November 2020
March 2021
Zantrene® highlighted as potent
inhibitor of FTO in
Cancer Cell – COH
/ Prof Chen
CCSA appointed
clinical + FDA
regulatory strategic
advisors
Zantrene® clinical
data published in the
European Journal of
Haematology
Multiple
pre-clinical
FTO-directed
programs
initiated
March 2021
May 2021
May 2021
June 2021
Final breast cancer
preclinical results
demonstrating activity
in treatment resistant
cancer cells
Race Placement
closes oversubscribed
and Bonus Option
Issue launched for
shareholders
Race appoints
Professor Michael
Kelso as Principal
Scientist
Race Executes
Key Contract
for Israel Phase
2 AML trial
April 2021
May 2021
June 2021
August 2021
Appointment of
Prof Chen of COH
to SAB
MD Anderson Cancer
Center Researchers
Publish AML Preclinical
Study on Zantrene®
Drug Combinations
showing superior
efficacy in AML cells
Commence Phase 2
Extramedullary AML
Trial – Aust.
First patient
dosed in Phase 2
AML trial – Israel
Race Oncology Limited
Annual Report 2021
5
Directors’ Report
DIRECTORS’ REPORT
Your Directors present their report, together with the financial statements of Race Oncology Limited (the company, Race or
RAC) for the financial year ended 30 June 2021.
Information on Directors
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
John Cullity
—
Non-Executive Chairman (appointed as a Director 6 April 2018)
Qualifications
—
MBBS, MRCP, MSc(Econs), MBA
Experience
—
Dr Cullity is Managing Director at BioSynergy Partners, a New York and Melbourne based advisory
recently spun out of Torreya – the renowned life sciences investment bank. He additionally serves
on the Boards of several life sciences companies including Ceramedix (seeded by Torreya).
At Torreya, he provided strategic advisory on Mergers and Acquisitions, Partnering and Financing
to life-science companies worldwide. Prior to joining Torreya, he was a senior member of the
Business Development team at Sanofi Pharmaceuticals, where he led buy side transactions in
oncology and diabetes. Earlier in his career, Dr Cullity was Head of Strategic Pricing and
Reimbursement at Sanofi, Director of Health Economics at Schering-Plough, and Consultant at A.T.
Kearney. He has also worked at the World Bank and the World Health Organisation.
Dr Cullity graduated in Medicine and sub-specialised in haematology-oncology at QE II Medical
Centre, Perth. He holds a Bachelor of Medicine, Bachelor of Surgery from The University of
Western Australia; Membership of the Royal College of Physicians; Masters in Health Economics
from London School of Economics & Political Science, and MBA from The Wharton School,
University of Pennsylvania.
Interest in Shares
and Options
—
5,681,817 ordinary shares
2,000,000 options expiring on 27 November 2021 exercisable at $0.23
1,000,000 options expiring on 25 November 2021 exercisable at $0.25
189,394 options expiring on 16 May 2022 exercisable at $4.50
Directorships held —
in listed entities
None
Phillip Lynch
—
Managing Director and Chief Executive Officer (appointed as a Director 1 June 2020)
Qualifications
—
Graduate of Monash University with a Bachelor of Business in Marketing. Completed postgraduate studies at University of Virginia’s Darden Business School (USA). Graduate of the
Australian Institute of Company Directors
Experience
—
Mr Lynch has a career spanning more than 30 years in the Asia Pacific region with Johnson &
Johnson. He is an experienced executive and board director, with a diverse background across
corporate development, strategy, financial performance, marketing and governance.
In his former role as Vice President of Commercial Growth and Innovation at Johnson & Johnson
Asia Pacific (J&J AP), 2016 - 2019), Mr Lynch partnered with the Mergers and Acquisitions team to
drive the integration and growth of acquired businesses. He retired from J&J AP in December 2019
following the >$2b acquisition and integration of a significant Japanese business.
Mr Lynch was previously the Managing Director and CEO of J&J Pacific (AU/NZ - 2009 to 2015).
He had further leadership roles across the Asia Pacific region, including Managing Director of
various J&J divisions in Thailand, Vietnam, and Singapore.
He is currently the Chair of Consumer Health Products Australia.
.
Interest in Shares
and Options
—
419,149 ordinary shares
2,000,000 options expiring on 29 November 2025 exercisable at $2.65
20,958 options expiring on 16 May 2022 exercisable at $4.50
6
Race Oncology Limited
3 | Race Oncology Limited ACN 149 318 749 – Annual Report 30 June 2021
DIRECTORS’ REPORT
Information on Directors (continued)
Directorships held —
in listed entities
None
Daniel Tillett
—
Executive Director and Chief Scientific Officer (appointed as a Director 17 September 2019)
Qualifications
—
Experience
—
Ph.D in Molecular Genetics & Biochemistry
Dr Tillett is the CEO and founder of Nucleics Pty Ltd, a private biotechnology company in the
genomics space. He was previously a Senior Lecturer within the School of Pharmacy at La Trobe
University where he lectured on biochemistry, biotechnology, pharmacy, microbiology and
virology. Dr Tillett’s Ph.D on the molecular genetics and biochemistry of microcystin toxin
production was awarded by the University of New South Wales in 2000.
Interest in Shares
and Options
—
13,450,000 ordinary shares
2,500,000 options expiring on 25 November 2022 exercisable at $0.19
2,000,000 options expiring on 29 November 2025 exercisable at $2.65
672,500 options expiring on 16 May 2022 exercisable at $4.50
Directorships held —
in listed entities
None
Mary Harney
—
Non- Executive Director (appointed 8 February 2021)
Qualifications
—
BSc, BA (Fine Arts), AICD
Experience
—
Ms Harney is the Director of specialist consulting firm Mary Harney Advisory providing leadership,
governance and strategic advice across innovation industries such as health, biotech and
agriculture. She currently also serves as Chairman of private Australian biotech Oncology One Pty
Ltd, a cancer drug discovery company.
Ms Harney was formerly the CEO of Royal Australasian College of Surgeons; CEO of Gardiner
Research Foundation; COO and Director of Office of Cancer Research for Peter MacCallum
Hospital, and; COO of Cerylid Biosciences. Other former roles were with CSL, Amrad,
BIOPROPERTIES and Royal Melbourne Hospital.
Interest in Shares
and Options
—
13,400 ordinary shares
400 options expiring on 16 May 2022 exercisable at $4.50
Directorships held —
in listed entities
None
Borje Andersson
—
Executive Director (appointed as a Director 1 February 2020, ceased 10 December 2020)
Qualifications
—
MB, MD, PhD
Experience
—
Prof Andersson is an internationally acclaimed leader in the field of leukaemia and stem cell
transplantation research at the MD Anderson Cancer Centre in Houston, Texas. Prof Andersson
was previously engaged as a scientific and clinical consultant to the Company and is Chair of RAC’s
Clinical Advisory Board.
Prof Andersson is the inventor of IV Busulfan, an FDA-approved drug used in stem cell
transplantation. Busulfan was approved in 1999 and has drastically improved survival outlook
for leukaemia patients, helping reduce the death rate in the first 100 days after transplant from
30-40% to less than 3%.
Interest in Shares
and Options
—
420,000 ordinary shares (at resignation as a KMP)
420,000 options expiring on 21 January 2024 exercisable at $0.12 (at resignation as KMP)
840,000 options expiring on 5 December 2024 exercisable at $0.18 (at resignation as KMP)
2,400,000 options expiring on 23 January 2025 exercisable at $0.275 (at resignation as KMP)
118,577 performance rights
4 | Race Oncology Limited ACN 149 318 749 – Annual Report 30 June 2021
Annual Report 2021
7
Directors’ Report
DIRECTORS’ REPORT
Information on Directors (continued)
Directorships held —
in listed entities
None
William Garner
—
Non-Executive Director (resigned 28 October 2020)
Qualifications
—
Master of Public Health, Harvard University
Doctor of Medicine, New York Medical College
Experience
—
William Garner, MD is a US physician, investor, and entrepreneur. Dr Garner is one of the inventors
on the Zantrene® patents, originally filed by Update Pharma, Inc. and now owned by Race
Oncology. Previously, he founded EGB Advisors LLC, a life sciences advisory firm whose clients
have included the M.D. Anderson Cancer Centre, the Kauffman Foundation, ChemGenex
(ASX:CXS) and CoTherix. He also founded Inverseon, Inc., which was merged with the ASX-listed
company cBio to create Invion Ltd, serving as CEO until May of 2013. He founded Urigen
Pharmaceuticals, Inc. and co-founded DelMar Pharmaceuticals, Inc. (NASDAQ:DMPI). Previously,
he was at Hoffmann La Roche in oncology medical affairs and worked as a merchant banker in
New York City.
Dr. Garner serves as Chairman of InMed Pharmaceuticals (TSX:IN) & Isla Pharmaceuticals and
works with several of the other portfolio companies of EGB Ventures. Dr Garner has a Master of
Public Health from Harvard and received his MD degree from New York Medical College. Dr.
Garner did residency training in Anatomic Pathology at Columbia-Presbyterian and is currently a
licensed physician in the State of New York.
Interest in Shares
and Options
—
14,037,774 ordinary shares (at resignation date)
1,000,000 options expiring on 25 November 2021 exercisable at $0.25 (at resignation date)
757,575 options expiring on 31 August 2021 exercisable at $0.099 (at resignation date)
Directorships held —
in listed entities
Chairman of listed company InMed Pharmaceuticals (TSX:IN)
Chris
—
Ntoumenopoulos
Non-Executive Director (resigned 28 October 2020)
Qualifications
—
Bachelor of Commerce, majoring in Money and Banking, Investment Finance and Electronic
Commerce
Experience
—
Mr Ntoumenopoulos is Managing Director at Twenty 1 Corporate, a boutique corporate advisory
firm. He has worked in financial markets for the past 12 years, focusing on Capital Raisings,
Portfolio Management and Corporate Advisory. Mr Ntoumenopoulos has advised and funded
numerous ASX companies from early stage venture capital, through to IPO. He is also a director of
various private and public companies which span across finance, technology and medical sectors.
Interest in Shares
and Options
—
1,038,884 ordinary shares (at resignation date)
189,393 options expiring on 31 August 2021 exercisable at $0.099 (at resignation date)
1,000,000 options expiring 25 November 2021 exercisable at $0.25 (at resignation date)
Directorships held —
in listed entities
ResApp Health Limited
Company Secretary
Peter Webse
—
Company Secretary
Qualifications
—
B.Bus, FGIA, FCIS, FCPA, MAICD.
Experience
—
Mr Webse has over 29 years' company secretarial experience and is the director of Governance
Corporate Pty Ltd, a company specialising in providing company secretarial, corporate governance
and corporate advisory services.
8
Race Oncology Limited
5 | Race Oncology Limited ACN 149 318 749 – Annual Report 30 June 2021
DIRECTORS’ REPORT
Meeting of Directors
During the financial year 10 meetings of Directors were held. Attendances by each Director during the year are stated in
the following table.
DIRECTORS’ MEETINGS
Number eligible to attend
Number Attended
John Cullity
11
11
Phillip Lynch
11
11
Daniel Tillett
11
11
Mary Harney
4
4
Borje Andersson
4
4
William Garner
3
3
Chris Ntoumenopoulos
3
3
Principal Activities
Race Oncology is an ASX listed precision oncology company with a Phase 2/3 cancer drug called Zantrene® (bisantrene
dihydrochloride).
Zantrene® is a potent inhibitor of the Fatso/Fat mass and obesity associated (FTO) protein. Overexpression of FTO has been
shown to be the genetic driver of a diverse range of cancers. Race is exploring the proof-of-concept use of Zantrene® as a
new therapy for melanoma and clear cell renal cell carcinoma, which are both frequent FTO over-expressing cancers. The
Company also has compelling clinical data for the use of Zantrene® as a chemotherapeutic agent with reduced cardiotoxicity
in Acute Myeloid Leukaemia (AML), breast and ovarian cancers and is investigating its use in these areas.
Race is pursuing outsized commercial returns for shareholders via its ‘Three Pillar’ strategy for the clinical development and
regulatory approval of Zantrene®.
Operating Results
The operating loss after income tax amounted to $6,340,319 (2020: $3,845,965 loss); net cash used in operating activities
was $4,697,578 (2020: $2,463,083).
Dividends Paid or Recommended
No dividends were paid or are payable for the financial year (2020: Nil).
Review of Operations
On 6 July 2020, the Company issued 500,000 fully paid ordinary shares at an issue price of $0.25 on exercise of 500,000
unlisted options with an expiry date of 1 April 2022.
On 13 July 2020, the Company advised it had received firm commitments for $3 million in new capital via a strategic
placement of 5,000,000 ordinary shares at an issue price of $0.60 per share. The placement was made to three prominent
biotechnology investors, Kidder Williams’ David Williams, EFM Asset Management’s Jeff Emmanuel, and a follow-on
investment by Merchant Opportunities Fund. The Shares were issued on the 14 July 2020.
On 22 July 2020, the Company announced it had secured a new patent on its cancer drug, Zantrene® (bisantrene
dihydrochloride), from the United States Patent and Trademarks Office. This was Race’s fourth patent granted on Zantrene in
the United States.
During July 2020, the Company issued 818,560 fully paid ordinary shares at an issue price of $0.099 upon exercise of 818,560
unlisted options with an expiry date of 31 August 2021.
On 11 August 2020, the Company held a General Meeting of Shareholders with all resolutions passed. Resolutions passed
included the Selective Share Buy-Back by Race of former Managing Director and CEO Peter Molloy’s Loan Shares. The
2,222,222 loan shares were subsequently cancelled on 26 August 2020.
6 | Race Oncology Limited ACN 149 318 749 – Annual Report 30 June 2021
Annual Report 2021
9
Directors’ Report
DIRECTORS’ REPORT
Review of Operations (Continued)
On 12 August 2020, the Company issued 6,000,000 fully paid ordinary shares at an issue price of $0.25 on exercise of
6,000,000 unlisted options with an expiry date of 1 July 2021. The options were originally issued to former CEO and Managing
Director, Peter Molloy and were acquired by a strategic investor on the 12 August 2020 and exercised early.
On 2 September 2020, the Company appointed Mr Phillip Lynch as CEO and Managing Director and Dr Daniel Tillett as Chief
Scientific Officer and Executive Director each on a 50% full time equivalent basis.
On 2 October 2020, the Company announced Professor Borje Andersson was appointed Chief Medical Officer (CMO) on a
40% full time equivalent basis.
On 28 October 2020, Dr. William Garner and Chris Ntoumenopoulos resigned as Non-Executive Directors.
On 24 November 2020, the Company shared impressive results from a pre-clinical research program in breast cancer,
conducted in collaboration with the University of Newcastle. The research program confirmed the historical clinical data that
Zantrene showed similar efficacy to doxorubicin and epirubicin in a range of breast cancer types. In addition, the research
program showed that Zantrene was effective and compatible in combination with other oncology drugs currently used in the
breast cancer treatment setting. The program provided support for the progression of Zantrene in breast cancer clinical trials.
On 26 November 2020 Race announced that clinical research organisation, George Clinical, would scope and cost a proof of
concept Phase I/II breast cancer clinical trial of Zantrene in combination with cyclophosphamide. The program will enable
the Company to make an informed and costed decision on this potential clinical pathway prior to expending significant
investor funds.
On 30 November 2020, the Company shared the Three Pillar Strategy, communicating an evolution to a precision oncology
focus via the Fat Mass and Obesity associated protein (FTO), while retaining legacy opportunities in breast cancer and Acute
Myeloid Leukaemia (AML). The updated strategy allows the Company to pursue outsized rewards for shareholders, while
minimising clinical and commercial risk. The Three Pillar strategy addresses the following areas:
•
•
•
Pillar 1 – FTO inhibition focused on melanoma and clear cell renal cell carcinoma as clinical proof-of-concept indications
Pillar 2 – Breast cancer treatment as a safer chemotherapeutic agent with expanded therapeutic index
Pillar 3 – AML addressing legacy plans in adult and paediatric populations. Evaluation of extramedullary AML, building
on the Israel trial observation and clear unmet clinical need.
On 30 November 2020, as approved at the Annual General Meeting, the Company issued a total of 5,600,000 Incentive
Options and 118,557 Incentive Performance Rights as follows:
a)
b)
c)
d)
2,000,000 Options exercisable at $2.65 and expiring on 29 November 2025 to Phillip Lynch;
2,000,000 Options exercisable at $2.65 and expiring on 29 November 2025 to Daniel Tillett;
1,600,000 Options exercisable at $2.65 and expiring on 29 November 2025 to Prof. Borje Andersson;
118,557 Performance Rights expiring on 29 November 2025 to Prof. Borje Andersson.
On 10 December 2020, Prof. Borje Andersson resigned as an Executive Director to focus on the role of Chief Medical Officer
and Chair of the Race Clinical Advisory Board.
On 17 December 2020, the Company received a Research and Development tax incentive refund of $387,385 from the
Australian Taxation Office for financial year ended 30 June 2020.
On 8 February 2021, Mary Harney was appointed as an independent Non-Executive Director (NED). Ms Harney is an
accomplished NED and executive with a deep academic and applied life science understanding, as well as biopharmaceutical
experience.
On 19 February 2021, Race announced that Professor Borje Andersson would retire as Chief Medical Officer (CMO) but retain
his role as Chair of the Clinical Advisory Board. Race shared plans to recruit a full time Australian based CMO, which would
allow the Company to execute upon the expanded clinical program shared in the Three Pillar strategy.
10
Race Oncology Limited
7 | Race Oncology Limited ACN 149 318 749 – Annual Report 30 June 2021
DIRECTORS’ REPORT
Review of Operations (Continued)
On 19 February 2021, the Company issued 2,972,575 fully paid ordinary shares following the exercise of options:
•
757,575 unlisted options with an exercise price of $0.099 expiring 31 August 2021;
•
1,540,000 unlisted options with an exercise price of $0.25 expiring 25 November 2021; and
•
675,000 unlisted options with an exercise price of $0.45 expiring 12 March 2022.
On 23 February 2021, Race announced positive early pre-clinical ovarian cancer results from the collaborative pre-clinical
research program with The University of Newcastle. Zantrene was found to be more effective compared to doxorubicin and
epirubicin in ovarian cancer cell lines and killed ovarian cancer cells resistant to the current standard of care
chemotherapeutic agents cisplatin, 5-fluorouracil and chlorambucil.
On 9 March 2021, the Company announced the final results of the continuing collaborative preclinical research program with
The University of Newcastle. It was reported that the final results showed Zantrene to be an effective chemotherapeutic
agent across a diverse range of genetically defined breast cancer subtypes and to also be able to kill breast cancer cells
resistant to a wide range of breast cancer treatment drugs.
On 10 March 2021, the Company issued 5,974,393 fully paid ordinary shares following the exercise of options:
•
135,000 unlisted options with an exercise price of $0.256 expiring 1 August 2021;
•
5,339,393 unlisted options with an exercise price of $0.099 expiring 31 August 2021; and
•
500,000 unlisted options with an exercise price of $0.25 expiring 1 July 2021
On 12 March 2021, S&P Dow Jones announced that as of 22 March 2021 Race Oncology was added to the ASX All Ordinaries
Index.
On 19 March 2021, Race initiated a pre-clinical collaboration study with the University of Newcastle to explore the use of
Zantrene as a novel FTO-directed treatment for melanoma. The study will assess drug combinations that may improve the
current standard of care for patients with a particular focus on overcoming immune checkpoint resistance. This project seeks
to capitalise on Zantrene’s FTO inhibiting properties in melanoma where FTO is overexpressed in approximately 50% of all
metastatic melanoma cancers.
On 25 March 2021, Race initiated a pre-clinical program with the University of Newcastle exploring the use of Zantrene as a
novel FTO-directed treatment for the kidney cancer, clear cell renal cell carcinoma (ccRCC). Study results will support a
proposed Phase II human trial of Zantrene in ccRCC scheduled to begin in Australia in 2022.
On 30 March 2021, Race announced a pre-clinical collaboration with the University of Newcastle to investigate
extramedullary AML using a mouse model developed by Associate Professor Nicki Verrills’ team. This program supports the
Australian extramedullary AML-focused clinical trial plan (Pillar 3), focused on a US FDA registration pathway for Zantrene.
On 31 March 2021, Race shared updates to the Company’s Three Pillar strategy detailing intended programs and activities.
The updates to respective pillars included:
•
Pillar 1 – pre-clinical programs confirmed in melanoma and ccRCC. A potential Phase 1 FTO-focused dose escalation
clinical safety study is under feasibility consideration.
•
Pillar 2 – a two path program investigating breast cancer was developed with advice from George Clinical. An Australian
clinical study focused on late-stage metastatic breast cancer has enlisted a principal investigator with a proposed start
date in late 2021. A secondary clinical program involving a potential opportunity to assess Zantrene’s heart-safety
profile is undergoing full feasibility evaluation in anthracycline naïve patients by George Clinical.
•
Pillar 3 –
(i)
Race committed to a Phase I/II clinical trial of Zantrene in combination with clofarabine and fludarabine in
relapsed or refractory (r/r) AML in Israel at the Chaim Sheba Medical Centre, led by Professor Arnon Nagler who
also led the earlier 2020 Phase II study.
(ii) A Phase I/II trial of Zantrene in extramedullary AML led by Associate Professor Anoop Enjeti, Director of
Haematology at Calvary Mater Newcastle and John Hunter Hospitals. This trial seeks to demonstrate efficacy of
Zantrene in fit patients or in combination with a hypomethylating agent in less fit patients. This trial will
potentially enable Race to pursue FDA/EMA approvals for this indication.
8 | Race Oncology Limited ACN 149 318 749 – Annual Report 30 June 2021
Annual Report 2021
11
Directors’ Report
DIRECTORS’ REPORT
Review of Operations (Continued)
(iii) A further opportunity in paediatric r/r AML is under feasibility assessment. This study is being shaped with input
from the Children’s Oncology Group in the USA and has the potential for both US FDA registration and a Priority
Review Voucher award.
On 1 April 2021, the Company issued 625,000 fully paid ordinary shares following the exercise of options:
•
125,000 unlisted options with an exercise price of $0.099 expiring 31 August 2021; and
•
500,000 unlisted options with an exercise price of $0.25 expiring 1 July 2021
On 7 April 2021, the Company issued 1,000,000 fully paid ordinary sh
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