Recce Pharmaceuticals Limited (ASX: RCE) is first in developing and commercialisation of a new class of synthetic antibiotics. It has a broad range of activity designed to address the urgent global health problem of antibiotic-resistant superbugs. It is an Australia-based biotech company with its patent product RECCE 327. It is used for the treatment of sepsis and blood infections. The company is developing clinical research partners in the USA and has a manufacturing facility in Australia. It has developed an automated process so that it can manufacture its lead compound before the start of first-in-human clinical trials
Today the company announced that it had received 23 claims for patent US 10,226,482 B2, ‘Copolymer and Method for Treatment of Bacterial Infection, from the US Patents and Trademarks Office. The USA represents close to half of the world’s USD 42.33 billion antibiotic markets by value. This is the second wholly owned patent of the company to be granted in the USA and secures significant and additional monopolies for Recce to November 2035. The granted patent contains a suite of 23 claims including its lead candidate RECCE® 327. The commercialisation strategy of the company is focused on leveraging its expanding local and international intellectual property estate.
The company recently submitted its half-yearly report. Under the operational highlights, the company reported on its activities during the period, on 13 September 2018, the company had entered into an agreement with Radium Capital to receive advance payments of its R&D tax incentive funds. The company received a cash of $679,624 Research and Development Tax Incentive rebate from the Australian Tax Office for the year ending 30 June 2018. Also, the company raised approximately $1.8 million from institutional investors via placement of 12,857,143 shares at $0.14 per share.
The half-year operating loss during the period of 31-Dec 2018 was reported at $1,065,299 as compared to a loss of $1,044,076 in 2017 primarily driven by increased R&D related costs. The loss per share for the period was 1.19 cents compared to 1.28 cents in 2017. The Group’s current focus is on progressing RECCE® 327 into a human clinical trial.
For the period ended 31 December 2018, the Company recorded net assets deficiency of $370,384 and had net cash outflows from operating activities of $1,013,618 compared to $1,201,534 in the prior corresponding period. The ability of the company to continue as a going concern and being able to continue to fund its operating activities is dependent on securing additional funding through share placements to new or existing investors and financial support through short term loans, together with continuous receipt of the R&D tax rebate.
On the price-performance front, the stock of Recce Pharmaceuticals Limited is currently trading at $0.185 with ~2.77% increase during the day’s trade, with a market capitalisation of $19.28 million. The stock has generated a YTD return of 2.86% and returns of 9.09% over the past three months. It had a 52-week high price of $0.210 and a 52-week low price of $0.130, with an average trading volume of 177,793.
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