Recce Pharmaceuticals Receives AUD $11.17 Million Research and Development (R&D) Advance
SYDNEY, Australia, March 12, 2024 (GLOBE NEWSWIRE) -- Recce Pharmaceuticals Ltd (ASX: RCE, FSE: R9Q), (the Company), the Company developing a new class of synthetic anti-infectives, today announced it received AUD $11,178,965 as a research and development (R&D) advance with Endpoints Capital, capturing Recce’s R&D tax incentive for the 2023/2024 fiscal year (FY23/24) and 2025 fiscal year (FY25).
Recce received $11.17 million in non-dilutive cash, reflecting R&D rebate credits for FY23/24, in addition to future anticipated R&D applicable expenditure for FY25. This enables the Company to leverage its R&D expenditure benefits of the past, present, and future R&D applicable expenditure on a here-today basis, as achieved by this agreement.
“Securing this advanced funding from Endpoints is a testament to the strength of Recce’s scientific platform and the potential of our pipeline,” said James Graham, Chief Executive Officer of Recce Pharmaceuticals. “This non-dilutive funding not only extends our financial runway but facilitates the acceleration of our multiple clinical programs. We thank Endpoints for having confidence in our vision and look forward to leveraging this partnership to drive meaningful progress in the fight against antimicrobial resistance.”
The Company recently announced it received an Advanced Overseas finding of AUD $54.9 million awarded by the Australian Government, underscoring the advance funds from Endpoints and extending the 43.5% R&D rebate from Australia to cover those undertaken by Recce anywhere in the world for a period of three years (July 1, 2022 to June 30, 2025).
The 15% per annum interest rate is market-leading, payable through offset against R&D refunds, and secured against accrued R&D credits only. Any surplus to R&D rebates, including around an imminent R&D rebate to FY23, is always that of Recce’s.
Andrew Stewart, Chief Executive Officer of Endpoints Capital, added, “We are delighted to be working with Recce Pharmaceuticals and the critical work they are doing advancing this new class of synthetic anti-infectives to address unmet medical needs where no cure exists for antibiotic-resistant superbugs. In a vast landscape of biotech innovators, we are pleased to be collaborating with Recce Pharmaceuticals as they pave the way in advancing their infectious disease portfolio to their next primary efficacy endpoint.”
About Endpoints Capital
Endpoints Capital is an Australian-based R&D finance firm that specializes in providing financing solutions for biotechnology companies accessing the Australian research & development tax incentive scheme. Our mission is to address the funding challenges faced by biotechs, allowing them to focus on innovation and development. As an Australian private company with 30 years of life sciences experience, Endpoints Capital plays a crucial role in supporting the growth of the biotech industry in Australia.
About Recce Pharmaceuticals Ltd
Recce Pharmaceuticals Ltd (ASX: RCE, FSE: R9Q) is developing a New Class of Synthetic Anti-Infectives designed to address the urgent global health problems of antibiotic-resistant superbugs and emerging viral pathogens.
Recce’s anti-infective pipeline includes three patented, broad-spectrum, synthetic polymer anti-infectives: RECCE® 327 as an intravenous and topical therapy that is 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 as an orally administered therapy for bacterial infections; and RECCE® 529 for viral infections. Through their multi-layered mechanisms of action, Recce’s anti-infectives have the potential to overcome the hypercellular mutation of bacteria and viruses – the challenge of all existing antibiotics to date.
The FDA has awarded RECCE® 327 Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (GAIN) Act – labelling it for Fast Track Designation, plus 10 years of market exclusivity post approval. Further to this designation, RECCE® 327 has been included on The Pew Charitable Trusts Global New Antibiotics in Development Pipeline as the world’s only synthetic polymer and sepsis drug candidate in development. RECCE® 327 is not yet market approved for use in humans with further clinical testing required to fully evaluate safety and efficacy.
Recce wholly owns its automated manufacturing, which is supporting present clinical trials. Recce’s anti-infective pipeline seeks to exploit the unique capabilities of its technologies targeting synergistic, unmet medical needs.
Corporate Contact
James Graham
Recce Pharmaceuticals Ltd
+61 (02) 9256 2571
Media & Investor Relations (AU)
Andrew Geddes
CityPR
+61 (02) 9267 4511
Media (USA)
Michael Fitzhugh
LifeSci Communications
Investor Relations (USA & EU)
Guillame van Renterghem
LifeSci Advisors
