Recce Pharmaceuticals — Funding secured to start Phase III pivotal trials

Recce is raising up to A$15.8m in equity fundraising through a now-completed A$5.0m share placement and an entitlement offer for remaining shareholders that could raise up to an additional A$10.8m in gross proceeds. Both rounds of financing are priced at A$0.28 per new share. We anticipate the total funding should support Recce’s operations into Q226 (Q4 CY25) as its near-term focus lies on advancing R327 topical gel (R327G) through registration-enabling pivotal studies. We expect Recce to start a registrational Indonesian Phase III study of R327G for the treatment of diabetic foot infections (DFIs) in the coming weeks. We now obtain an rNPV valuation of A$615.1m and our per-share valuation adjusts to A$2.51 per share (vs A$2.68 previously), reflecting the increase in shares outstanding after the placement.