Recce Pharmaceuticals (ASX: $RCE) June 2024 quarter results and operational highlights

Recce Pharmaceuticals Ltd (ASX: $RCE), a company developing a New Class of Synthetic Anti-infectives, released its June 2024 quarter results and operational highlights. The company ended the quarter with a cash balance of $4.4 million, with net cash outflows from operating activities at ($2.1 million). Recce Pharmaceuticals secured additional funding subsequent to the quarter, including a ~A$3.0 million grant from the US Department of Defense, a completed A$8.0 million institutional placement, and an open A$2.0 million Share Purchase Plan (SPP) to raise up to a total of ~A$10.0 million, resulting in a pro-forma cash position of A$16.0 million.

Executive Commentary

The positive data from the Phase I/II UTI/Urosepsis Rapid Infusion Clinical Trial of RECCE® 327 (R327) is a significant milestone for Recce Pharmaceuticals. The results demonstrate the safety and efficacy of R327 against Escherichia coli (E. coli) and its potential to provide rapid relief to patients. Additionally, the ethics approval to centralize and broaden R327 Gel Clinical Trials across Topical Bacterial Skin Infections, including Acute Bacterial Skin and Skin Structure Infections (ABSSSI), opens up new avenues for the company's anti-infective development. The successful completion of the institutional placement and the ongoing Share Purchase Plan further strengthen our financial position, ensuring that we are well funded to advance our clinical trials and research initiatives.

Summary

Recce Pharmaceuticals (ASX: $RCE) has made significant progress in its anti-infective development, with positive data from clinical trials and the addition of R327 to The World Health Organization's List of Antibacterial Products in Clinical Development. The company's pro-forma cash position of A$16.0 million, inclusive of the $3.0 million US Department of Defense grant, provides a strong financial foundation for future advancements. With ongoing clinical trials for UTI/Urosepsis, ABSSSI, and lung infections, as well as strategic partnerships and recognition from global health organizations, Recce Pharmaceuticals is well positioned to continue its innovative work in the field of synthetic anti-infectives.