RAC - Charts & Price Action, page-7918

DYOR. Analysis is highly speculative. You must do your own research and make your own decisions. Seek independent professional advice and make your own investing decisions.​

Agree that chances are quite strong - for the following primary reasons.

• Strong historic Efficacy/ Safety Data
• Cardiac safety (low cardio-toxicity) is shown by historical trials and historical preclinical data
• Bisantrene/Zantrene previously approved (France 1990)
• Strong Phase II results in 2020 (reconfirms the drug works well as a single-agent)
• Strong commercial position
  • Existing patents + new patent applications are in
  • FDA Orphan Drug Designation (7 years exclusivity)
  • FDA Rare Paediatric Disease Designation

Big Pharma can move fast once the data supports it. Synthorx is the best example of this. They completed their deal with Synthorx 16 months before the trial reported the a key safety readout.



(the second reference below is the most interesting as it covers the underlying bidding war)

1. https://www.sanofi.com/en/media-room/press-releases/2019/2019-12-09-07-00-00
2. https://www.fiercepharma.com/pharma/sanofi-beat-out-three-suitors-its-pricey-2-5b-buyout-biotech-synthorx
3. https://www.jefferies.com/CMSFiles/Jefferies.com/files/Synthorx%20v2.pdf
4. https://www.fiercebiotech.com/biotech/aacr-sanofi-s-engineered-il-2-clears-safety-hurdles-early-phase-1-data

As an aside RACE's Chairman, Dr Cullity has a background at Sanofi and has specialist experience in M&A ... as does RACE's CEO Philip Lynch with J&J.

https://www.raceoncology.com/john-cullity/
https://www.raceoncology.com/phil-lynch/

Data will increase in the coming months and (as previously indicated by RACE) they plan to start marketing to Big Pharma from the end of this calendar year (noting two RACE board members have strong M&A experience).



Important to note that 85% of transactions occur during Phase I and II.
RACE are essentially planning via fast and low-cost proof-of-concept Phase I/II trials to lay the groundwork for a Big Pharma to take the drug through to approval.

Much more detail in Post #:55272863 for underlying targets. These fluctuate with exchange rates. Where a potential deal could land in terms of SP/transaction value will ultimately depend on when a Big Pharma pounces. The current trials and preclinical activity is all about RACE building a warchest of IP (proof the drug works) that they can use in negotiations with potential bidders. RACE don't need approval ... they just need the data for Big Pharma to pounce (as happened with Synthorx).

Current SP action is in my view one of those irrational bumps in the road, noting the long-term trend.




Interesting to look back at comments from these forums when the SP has previously been in a bearish mood. SP looking similarly bearish (and without the long 4-5 month consolidation period the SP has had recently). biobull19 comments I have highlighted. Soon after they disappeared.

RACE since mid 2019 have consistently delivered on the FA.
I don't see a reason for that to change given the history of the drug.