Reporting from Sydney, drug discovery and development business Recce Pharmaceuticals [ASX:RCE] released the news that it’s now received a grant intent from the Australian Patent Office.
The grant is for an antivirus agent, Patent Family 3 ‘Anti-Virus Agent and Method for Treatment of Viral Infection’, which targets a range of viruses, including SARS-CoV-2, coronaviruses, influenza, and HIV.
RCE’s stock price was climbing close to 5% by the early afternoon, pulling the stock’s share value up 3% for the first week of the year.
However, the biotech remains in the red over the past full year, having slumped more than 40% throughout 2022.
Versus the ASX 200 average over the 12 months, RCE underperformed by 36%.
Source: TradingView
Grant intent awarded to Recce as Australian Patent
The virus drug developer announced a grant intent from the Australian Patent Office for its antivirus agent development in Australia — Recce’s Patent Family 3 ‘Anti-Virus Agent and Method for Treatment of Viral Infection’.
RCE has been developing as a business, commercialising new classes of synthetic antibiotics on a spectrum of activity, focused mostly on designing the combative qualities for antibiotic resistance to superbugs and overall addressing the growing global health challenge as newer, stronger variants emerge and threaten the global population.
Recce claims its latest product RECCE® 327 (R327) and Anti-Viral formulation RECCE® 529 (R529), can be used to treat viruses with a lipid envelope or coat, examples being SARS-CoV-2, coronaviruses, influenza viruses, HIV, Hepatitis, Ross River, and Herpes viruses.
Treatment can be administered for either R327 or R529 as an oral medicine, injection, inhalation, or even transdermal dose application — applied to the skin as an adhesive patch for slow body absorption.
The company said this is its final patent, following grants in the largest pharmaceutical markets across the globe, including China, Hong Kong, Japan, and Europe.
Chief Executive Officer James Graham stated:
‘Receiving notice that this Australian patent application will proceed to grant is another milestone in the Company’s global IP strategy; and are thrilled by the yet further validation to the potential importance of our infectious disease compounds.’
Recce’s journey in anti-infective research
At the end of 2022, Reece announced it had begun a new research collaboration agreement with Murdoch Children’s Research Institute for its Anti-Infective Research (AIR) Unit, which included the procurement of infectious disease experts, laboratory space access, and a library of clinical isolates and drug-resistant pathogens.
Together, Murdoch Children’s and Former Head of Murdoch Children’s Mucosal Immunology and Recce’s Vice President of Translational Sciences, Dr Phil Sutton, continue to develop solutions to a range of deadly pathogens.
Recce’s pipeline includes R327 Intravenous for serious bacterial infections, sepsis, and urinary tract, while R327 Topical targets wounds, burns, and ulcers that have either reached or are midway through Phase 2.
In September 2022, the company ended the quarter with a cash balance of $5.73 million, with cash outflows of $5.86 million.
It’s usual for research and development expenses to outweigh cash inflows as companies gain access to growing medical markets. As seen today, RCE is taking a step closer to meeting such targets.
Five bargain stocks
The end of 2022 and the beginning of FY23 were fraught with challenges.
With some effects of the pandemic still lingering, we were handed an influx of new challenges — inflation, war, continually rising rates…
The hard yards aren’t quite over yet, which is why everyone is looking to save a pretty penny where they can.
And it’s in times like these that some real ASX stock bargains can emerge — if you know where to look.
Our small caps expert Callum Newman has done the hard work for you.
He’s found five of what he calls ‘the best stocks to own in Australia’ right now.
And the best part is, right now, they don’t even cost that much.
Click here to discover Callum’s top five Aussie bargain stocks.
Regards,
Mahlia Stewart,
For Money Morning
