RAC has dropped almost another 10% as of closing today (and more...

RAC has dropped almost another 10% as of closing today (and more at at lows) since I posted this Wednesday (a mere 4 days ago!). The aussie dollar is also down 1.5% or so since then.

Fully diluted RAC market cap now sits barely above AUD 200 million / USD 133 million. Enterprise value now sits around AUD 180 million / USD 120 million.

I did a quick run through of the significant announcements and discoveries that have occurred in the more than 2.5 years since RAC was last at this valuation:
- positive Breast cancer pre-clinicals (including doxorubicin/cyclophosphamide/Zantrene 3 drug combo)
- positive Melanoma pre-clinicals (with both immunotherapy and kinase inhibitors)
- positive AML pre-clinicals
- positive ccRCC pre-clinicals
- positive Multiple Myeloma pre-clinicals
- Prof Chen joins SAB
- Second independent study confirming Bisantrene inhibits FTO
- SPP raises $29.7 million
- Sheba 2 AML Trial initiated and completed Phase 1 with 50% RR
- Additional patents granted
- FTO Biomarker study initiated
- Companion Diagnostic study initiated
- AML EMD Trial commenced
- Heart Protection discovery
- Independent confirmation in USA that bisantrene protects mouse hearts from doxorubicin toxicity
- New drug discovery program started
- IV Formulation announced (but GMP product not yet delivered)
- Buyback started, stalled and now completed
- Positive Pre-IND guidance received from FDA
- Cardioprotection Breast Cancer trial ethics approval received
- New cardioprotection study with Dr Brian Jensen started
- Cardioprotection market data released.
- Team of 10+ group of cardio-oncology Consultants/KOLs (USA and Australia) engaged to guide clinical development and commercial strategy
- Significant staffing changes - DCB in, DT out, PL and JC take the back seat, MH steps up, DF out, Advonate/AD/TH in, MR in.

Admittedly we're still waiting to know the full details of some of these announcements, but signs are that they are positive as we've been told that the data has been withheld for strategic/commercial reasons and/or to enable peer review and publishing in journals/conferences.

As the share price continues to drop, it seems that the market valuation is increasingly disconnected from the value of bisantrene as a drug and Race's internal IP and knowledge around FTO inhibition/mRNA epigenetics and Cardioprotection. I wonder if there is a price at which someone takes a swing at picking up the whole package? As I said last post, 5 years ago Merck paid USD 394 million for Cavatek, which has now been completely shelved. Race at current prices would seem like a much lower risk and potentially much higher reward purchase.