Join our daily newsletter At The Bell to receive exclusive market insights
- Recce Pharmaceuticals (RCE) is set to pocket a huge kickback from the government’s research and development (R&D) tax rebate scheme
- Typically the rebate only applies to work done domestically, but Recce has been granted the right to claim for overseas R&D as well
- That means the company will be able to claim the full 43.5 per cent rebate on $17.15 million worth of spending — a kickback totalling more than $7.46 million
- The extra funds provide Recce with a substantial cash runway following a recent $27.95 million capital raise
- With over $35 million in the bank to fund the next phases of clinical trials, the company looks well-set to advance its research programs
- Recce Pharmaceuticals spiked early but has settled back to the grey line, trading for $1.13
Recce Pharmaceuticals (RCE) is set to pocket a huge kickback from the government’s research and development (R&D) tax rebate scheme.
Special extension
Typically the R&D rebate only applies to work done domestically, but the government’s Advanced Overseas Finding in Recce’s favour means the company can seek the rebate on overseas work as well.
All up, Recce has been granted the right to claim for foreign R&D work for a period of three years from July 1, 2019 until June 30, 2022.
That means the company will be able to claim the full 43.5 per cent rebate on $17.15 million worth of spending — a kickback totalling more than $7.46 million.
The extra funds provide Recce with a substantial cash runway following a recent $27.95 million capital raise.
With over $35 million in the bank to fund the next phases of clinical trials, the company looks well-set to advance its research programs.
Next steps
Recce’s primary focus is on the development of synthetic antibiotics designed to address the urgent global health problems of antibiotic resistant superbugs and emerging viral pathogens.
With a number of broad-spectrum synthetic polymer antibiotics for viral infections in the pipeline, Recce is gearing up for first-in-human clinical trials.
The company wholly owns its automated manufacturing facility, which is ready to roll out the necessary products ahead of its upcoming trials.
The company’s patented lead candidate, Recce 327 for blood infections, has also been granted U.S. Food and Drug Administration Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (GAIN) Act.
The therapy has been labelled for fast track designation, plus 10 years of market exclusivity post-approval.
With money in the bank and guaranteed support for overseas initiatives, Recce is gathering momentum on the path to commercialisation.
Recce Pharmaceuticals spiked early but has settled back to the grey line, trading for $1.13 at 2:11 pm AEDT.
