Recce Pharmaceuticals (ASX:RCE) published a business update highlighting two key developments with the potential to deliver share price upside on Monday.
Firstly, Recce is stepping up its trial activities in Australia’s nearest Asian neighbour, Indonesia.
Recce’s flagship anti-infective, R327, can be applied as a gel – and this gel-based version of the drug has been of specific interest to Recce in recent months with a view towards infected foot wounds tied to diabetes.
A Phase I/II clinical trial looking at the use of R327 gel to treat diabetic foot infections (DFIs) is moving towards a Phase III “registrational trial” in Indonesia, set to take place in Q3CY24.
Secondly, the company has won a nod of the hat from none other than the US Department of Defence.
The DoD also has its eyes on the R327 gel product with a view towards its application on infected burn wounds incurred by soldiers.
The DoD has recommended the company receive some A$3.3M in funding for further development and investigation.
This underpins Recce’s growing international awareness and brand presence at keystone conferences around the world, the company reported on Monday. Both the WA and NSW state governments have sponsored Recce for the BIO International Convention 2024.
The company is building up an application for fast-track status within the US FDA approvals ecosystem for R327 and anticipates a US-based trial to commence in H1CY2025 with the submission set to be lodged in H2CY2024.
In another recent test, R327 has also been shown to be effective at killing drug-resistant strains of E. Coli.
RCE shares were up 2.2% to 46cps in afternoon trades.