Recce Pharma

Recce Pharmaceuticals (ASX: RCE)

Last close As at 29/02/2024

AUD0.45

0.00 (0.00%)

Market capitalisation

AUD92m

Recce Pharmaceuticals is an Australian company developing its novel, broad-spectrum synthetic polymer anti-infective drugs for the treatment of several infectious diseases, including sepsis (Phase II-ready), burn wound infections (Phase I/II) and urinary tract infections.

The WHO estimates that sepsis leads to c 11 million deaths each year. Sepsis affects 1.7 million people in the United States annually and costs the healthcare system US$57bn in inpatient costs. In our view there are significant opportunities for treatments that may reduce morbidity or hospital utilisation. Recce had a gross cash balance of A$8.36m at 30 September, which was strengthened by a A$10.7m equity raise in Q3 CY23, and subsequently boosted by a A$0.3m shortfall commitment.

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Team of Research Scientists Working On Computer, with Medical Equipment, Analyzing Blood and Genetic Material Samples with Special Machines in the Modern Laboratory.

Sector

Healthcare

Equity Analyst

Pooya Hemami

Analyst - Healthcare

Nidhi Singh

Nidhi Singh

Analyst

Arron Aatkar

Associate analyst

Jyoti Prakash

Jyoti Prakash

Analyst, Healthcare

Soo Romanoff

Soo Romanoff

Managing Director - Head of Content, Healthcare

Key Management

  • James Graham

    CEO

  • Daniel Astudillo

    Head of marketing

  • Dr John Prendergast

    Chairman

Balance Sheet

Forecast net debt (A$m)

15.7

Forecast gearing ratio (%)

93

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (15.1) 0.0 (21.4)
Relative (16.5) (8.8) (26.3)
52 week high/low A$0.7/A$0.4

Financials

Recce Pharmaceuticals has announced several positive developments in recent weeks relating to its therapeutic programmes, particularly for lead anti-infective candidate RECCE® 327 (R327). It entered a strategic collaboration with an Indonesian biomedical company, PT Etana Biotechnologies (Etana), which may support the engagement of relatively lower-cost clinical trial sites with potentially deep patient pools in South-East Asia (SEA). The company also recently disclosed positive efficacy results among five patients treated in its Phase I/II study of topical R327 in patients with diabetic foot infections (DFI), and it now plans to expand this programme to additional domestic and global sites. We have raised our valuation to reflect the rolling forward of our estimates and reductions in our R&D and SG&A cost projections, following the most recent quarterly cash flow update. We now obtain a risk-adjusted net present value (rNPV) of A$652.6m (or A$3.20/share), versus A$551.1m previously.

Y/E Dec Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 3.1 (10.9) (11.0) (6.31) N/A N/A
2023A 4.3 (12.8) (13.1) (7.55) N/A N/A
2024E 3.2 (24.4) (24.8) (12.99) N/A N/A
2025E 8.7 (50.5) (55.3) (27.13) N/A N/A

Thematics

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