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$4.0m at 31 December, which we estimate provides an operating runway into Q2 CY24.
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James Graham
CEO
Daniel Astudillo
Head of marketing
Dr John Prendergast
Chairman
Forecast net debt (A$m)
8.7
Forecast gearing ratio (%)
86
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 41.3 | 25.0 | 1.6 |
Relative | 42.9 | 21.9 | (3.7) |
52 week high/low | A$0.7/A$0.4 |
Recce Pharmaceuticals is a clinical-stage, Australian biotech company developing a novel class of broad-spectrum synthetic anti-infective drugs to which, so far, all tested bacteria have been unable to develop resistance. This would be a very desirable trait given widespread concerns about antimicrobial resistance. The lead indication for RECCE 327 (R327) is sepsis (Phase I/II study underway), a substantial area of unmet need with significant mortality and high costs of care. Recce is also assessing its intravenous formulation in complicated urinary tract infections. Topical spray and gel formulations of R327 are also being evaluated for burn wound infections and diabetic foot infections.
Y/E Dec | Revenue (A$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 | 5.8 | (17.2) | (18.1) | (9.45) | N/A | N/A |
2025E | 6.7 | (52.5) | (58.4) | (28.69) | N/A | N/A |