Edison Group Research Report

Recce Pharmaceuticals: Seeking a breakthrough in sepsis.

Recce Pharmaceuticals is 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 could be a very desirable trait given

widespread concerns about antimicrobial resistance (AMR). The lead

indication for Recce’s synthetic polymer antibiotic, Recce 327 (R327), is

sepsis, a substantial area of unmet need with significant mortality and high

costs of care. A Phase Ib/IIa multiple-dose study of an intravenous (IV)

R327 formulation in healthy subjects is planned to start in H1 CY23. The

company is also assessing other infection indications, such as

complicated urinary tract infections (UTIs). A topical (spray-on) formulation

of R327 is also being assessed in human trials for burn wound infections,

and a new study for diabetic foot infections is expected to start shortly. We

value Recce at A$497m, or A$2.79/share.