Recce Pharmaceuticals Ltd (ASX: RCE) Share Price and News
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About Recce Pharmaceuticals Ltd
Recce Pharmaceuticals (ASX: RCE), is a biotech company focused on developing innovative synthetic anti-infectives aimed at addressing the global challenge of antibiotic-resistant superbugs, such as sepsis.
The company's flagship products, RECCE® 327 (R327) for bacterial infections and RECCE® 529 for viral infections, specifically targets these resistant pathogens, and positions the company as a critical contributor to global health solutions.
Recce Pharmaceuticals History
Founded by Dr. Graham Melrose in 2008, Recce Pharmaceuticals (ASX: RCE) emerged from his extensive experience at Johnson & Johnson, leverages Dr. Melrose's pioneering research to create new classes of synthetic anti-infectives. It was named Recce (pronounced 'Wreck-key') because Recce is the standard military shortening of the word 'reconnaissance'. It intended to have a military-like impact on superbugs.
The company was listed in 2016, and over the years, Recce has advanced its drug candidates, through the clinic. R327 is the candidate that is most advanced. The drug, which can be administered topically or intravenously, has a Unique Mechanism of Action, working fast and continuing to work just as effectively with repeated use. Endurance is something existing antimicrobal solutions tend to stumble at, especially when bacteria mutates. Mutation is where the sequence of bacteria alters and one of the consequential effects can be resistance to antibiotics.
As of May 2023, the company has several clinical trials underway but the following 3 are most important:
- Phase I/II for Urinary Tract Infection (UTI)/Urosepsis infections
- Phase II for Burn Wound Infection (BWI)
- Phase II for Diabetic Foot Infections (DFI)
The first of these trials involves R327 being administered intravenously, while the other two see topical administration.
Future Outlook of Recce Pharmaceuticals (ASX: RCE)
Recce Pharmaceuticals Ltd (ASX: RCE) has a bright future ahead of it, assuming it can advance its drugs through the clinic and onto the market.
The key catalysts for the company will be the results from the three Phase II trials currently underway. Looking ahead, the company plans to file an Investigational New Drug (IND) with the US FDA in the second half of CY24, with initiation of a pivotal clinical trial (that is to say, the final trial before the company applies for regulatory approval) in the US to occur in the first half of CY25.
Investors should watch Recce with eager interest in the months ahead. With the Biotech Bear Market well and truly behind us, and historical precedent for positive Phase II results to be company defining and create substantial shareholder value, we think the company has a bright future.
Is Recce Pharmaceuticals (ASX: RCE) a Good Stock to Buy?
Recce appears promising, but it is not necessarily suitable for all investors. As with all clinical-stage biotechs, there is the risk of clinical trial failure and this could result in a significant retreat in the company's valuation. It is also not one for dividend investors because it does not pay a dividend.
However, the company carries less risk than many of its peers because it has multiple clinical trials underway and some of these are at more advanced stages than its peers.
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Frequently Asked Questions
Recce Pharmaceuticals has recently received a significant R&D advance of AUD $11.2 million, which improves their ongoing and future research initiatives. It also raised $8m last year in a capital raising.