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Recce Pharmaceuticals (ASX:RCE) has secured the first tranche of a $30 million debt facility to continue running skin infection trials and boost commercialisation efforts across the ASEAN region.
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Tapping Avenue Capital for the dosh, Recce is keen to stay cashed up for the remainder of its Phase III clinical trials across Indonesia and Australia (including manufacturing costs).
What Recce is treating in those trials is Diabetic Foot Infections (DFIs) and Acute Bacterial Skin and Skin Structure Infections (ABSSSI). Both conditions are being treated with Recce’s in-house anti-infectives.
Recce has long been spearheading with R327, a topical gel useful in the treatment of multiple conditions but particularly of interest to treat infections in patients with diabetes who’ve had feet amputated, a common side effect of the untreated disease.
While Recce’s so far secured $11.5M of a total possible $30M from Avenue, it’s already got around $30M in cash on top of a recent $15M raise.
While the stock’s 1Y returns are down, it’s perhaps fair to say the raising activity hasn’t necessarily scared off investors. “Liberation Day” in April was more than enough to shake some confidence out of biotech, which ran hard through Q1 of CY25, much of that momentum led by Mesoblast.
Helping matters: The $30 million from Avenue is non-dilutive funding. Recce has 288 million shares on issue at 31cps each – far away from having raised itself into a hole, so to speak.
The name of the game is, all cards in order, hitting the shelves (or hospitals) in 2026.
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“With our lead candidate R327G now in registrational trials and targeting commercial launch in 2026, this strategic partnership with Avenue Capital Group allows us to advance our clinical programs while preserving shareholder value,” RCE chief James Graham said.
RCE last traded at 31cps.
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