Recce raising up to $15.8m for Phase III trials

Synthetic anti-infective biotech Recce Pharmaceuticals raising up to $15.8m to fund Phase III trials

The new funding will support Phase III trials for RCE’s diabetic foot infection and acute skin infection treatments and FDA applications. Pic: Getty Images

• Funding to support Phase III clinical trials for diabetic foot infections and acute bacterial skin and skin structure infections

• Private Australian-based investor has subscribed for $5 million shares via a placement

• A$10.8 million entitlement offer has been launched at $0.28 per share

Special Report: Targeting first revenue in 2026, Recce will use new funds of up to $15.8m to support a Phase III registrational topical clinical trial for its diabetic foot infection (DFI) treatment in Indonesia.

Also supported will be the start of Phase III Acute Bacterial Skin and Skin Structure Infections (ABSSSI) registrational topical clinical trial in Australia.

In a strong validation of the company’s clinical pipeline, Recce Pharmaceuticals has secured $5 million via a share placement with a private, Australian-based investor.

The company has also launched a non-renounceable entitlement offer, with one new share at 28c on offer for every six RCE shares held in an effort to raise an additional $10.8 million.

Directors intend to take up entitlements in part or in full in this offer.

The offer price represents a 13.8% discount to the closing price of 32.5c on April 9, 2025, and a 19.8% discount to the 5-day Volume Weighted Average Price of 34.92c up to and including April 9.

“Proceeds from the capital raising will be used to support a Registrational Phase III clinical trial for Diabetic Foot Infections in Indonesia and a Registrational Phase III for ABSSSI across Australia, following a recently announced Phase II ABSSSI clinical study achieving all endpoints,” Recce Pharmaceuticals CEO James Graham said.

The capital will also support Recce’s synthetic anti-infective clinical pipeline, which is targeting diseases most vulnerable to antibiotic resistance complications.

“This capital raise supports a critical step forward as we commence our Phase III trial,” chair Dr John Prendergast said.

“Given current share levels and the anticipated trial timeline, we believe Recce offers strong underlying value.

“The outcome of this trial represents a potential inflection point for the company, with the opportunity to advance a new standard of care and improve outcomes for patients.”

Watch: Recce's calendar of clinical accomplishment

Synthetic anti-infective market

Antimicrobial resistance is a growing concern among the medical community and occurs when bacteria, viruses, fungi or parasites change so that antimicrobial medicines are no longer effective.

The medical community has found itself in an arms race where it is often only a matter of time until microbes develop resistance to new medicines.

Recce intends to win this race with a new class of anti-infective, made from synthetic polymers the microbes are not equipped to defend against.

The company’s pipeline includes:

• RECCE® 327 (R327) as an intravenous and topical therapy, being developed for the treatment of serious and potentially life-threatening infections due to Gram-positive and Gram-negative bacteria, including their superbug forms;
• RECCE® 435 (R435) as an orally administered therapy for bacterial infections; and
• RECCE® 529 (R529) for viral infections.

The global anti-infective agent market was estimated at US$135.43 billion in 2024 and the global DFI market was estimated at US$8.83 billion in 2024.

This article was developed in collaboration with Recce Pharmaceuticals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Recce raising up to $15.8m for Phase III trials