Recce Pharmaceuticals - R327 continues to progress in clinical trials

Recce Pharmaceuticals raised A$11.0m (gross) in September and October. Most of the proceeds (A$6m) will be directed towards the company’s clinical programmes for lead anti-infective candidate RECCE® 327 (R327), including the ongoing Phase I/II study of the IV formulation in healthy volunteers and in patients with uncomplicated or recurrent urinary tract infections (UTIs). This study continues to advance, with the company recently dosing healthy subjects with the 3,000mg dose over a 15-minute infusion period, following a favourable safety review of this dose over a 30-minute infusion. We model that Recce is currently funded into CY24 and expect the company to seek additional funding, which may come from partnerships or non-dilutive arrangements. Following minor adjustments to our forecasts, we now obtain an rNPV valuation of A$551.1m (or A$2.71 per share), versus A$562.4m previously.