Recce Pharmaceuticals — Up to A$85m of overseas R&D funding secured

Recce Pharmaceuticals recently reported that the Australian government has agreed to provide it with up to A$85m in future cash rebates over the next three years to reimburse the company’s upcoming R&D expenditure towards its proprietary synthetic anti-infective programmes. This binding Advanced Overseas Finding (AOF) agreement with the Australian government’s Department of Industry, Science and Resources (AusIndustry) extends the rebate programme, which customarily reimburses 43.5% of eligible R&D expenditures incurred within Australia, to cover the anti-infective R&D activities Recce undertakes anywhere in the world. This is particularly noteworthy given that Recce started patient dosing in September 2025 for its pivotal Phase III Indonesian-focused study of its R327 topical gel formulation (R327G) for the treatment of diabetic foot infections (DFIs). We estimate the majority of this study’s costs will be incurred outside of Australia, with this AOF decision therefore potentially benefiting Recce.