The All Ords is posting a back-to-back day in the green, lifted primarily by a resurgence in tech stocks.
However, it seems this rising tide hasn’t raised all ships…
Recce Pharmaceuticals Ltd [ASX:RCE] is a prime example. With the stock trading 0.5% lower at time of writing. Suffering a mixed day of trading as its share price has jumped up and down.
A fairly disappointing result considering the company released some promising data this morning.
Anti-bacterial fight fails to impress the market
Recce, which develops and produces synthetic anti-infectives, had some good news to share today. Detailing the latest findings from its in-vivo study of RECCE 111 (R111) in mice for the treatment of bacterial sinusitis.
As a brief side note, R111 is a new drug developed from the existing research of R327. Another anti-infective solution that we have previously discussed here.
Today though, they found that this dose of their new anti-infective drug (R111) was quite effective with dealing with bacterium. Showcasing a possible treatment for deadly illnesses like pneumonia, meningitis, sepsis and other sinus infections.
As the announcement notes:
‘The Company’s R327 and R111 compounds showed significant antibacterial capability with no abnormalities detected and are expected to be subject to further expanded sinusitis studies in due course. In addition to these studies, the Company’s clinical activities with R327 continues to progress in the background and looks forward to updating shareholders in due course.’
So, this could be the start of yet another winning formula for Recce.
Granted, it is still very early days. With plenty of studies often showcasing great promising in animal studies but failing to mimic the success in human trials.
Only time will tell whether Recce can turn these fascinating anti-infectives into a disruptive medical solution.
CEO, James Graham, was clearly upbeat about the finding, stating:
‘We’re continually excited by the potential of Recce’s anti-infective compounds and are encouraged by these positive indications. Moreover, this further enhances the breadth of Recce’s synthetic polymer platform.’
Clearly, he along with shareholders, will be hoping to turn todays results into a meaningful return on investment. Especially as it expands the company’s breadth, as Graham notes.
What’s next for Recce shares?
Looking ahead, the clear focus for Recce must be clinical trials. With at least one Phase I/II study underway for R327 on burn wounds.
As the market response has shown today, investors clearly want to see results from human patients. With mice studies, no matter how promising, failing to elicit any sort of upbeat momentum.
With that in mind, shareholders may need to be patient.
Getting any drug through trials is a slow and costly process. One that Recce will need to devote considerable resources to.
For that reason, we suggest thinking carefully before investing in a stock like Recce. Ensuring that have a solid strategy, and good risk management framework in place. If you’re looking for help on where to start on this front, then we’ve got the ideal report for you…
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For Money Morning