Shareholders in Recce Pharmaceuticals Ltd (ASX: RCE) have been hitting the sell button today following the release of its quarterly update.
At the time of writing, the Recce share price is trading 7.59% lower at $1.10. This represents a decline of 40% since the price reached an all-time high of $1.87 last month.
Let's see what Recce achieved for the quarter.
Trading update
For the period ending September 30, Recce reported a cash balance of $25.6 million due to a successful capital raise. Cash out-flows from operations came to $3.3 million with $2.5 million invested in research and development.
The company received a $37,508 grant as part of the Entrepreneurs' Program run by the Department of Industry, Science, Energy and Resources. The funds are expected to be put towards its Recce 327 SARS-CoV-2 antiviral screening program.
The company said it was well-funded to advance its clinical and commercial programs to date.
Operational highlights
Recce briefly touched on its operational developments over the last quarter, highlighting key achievements.
Recce 327
The phase I clinical study of its flagship drug, Recce 327 is currently being trialled at South Australia's CMAX Clinical Research. The company said that the program was progressing well with significant volumes of Recce 327 and placebos being produced. The phase I study aims to assess the safety and tolerability of Recce 327 in healthy patients as a single ascending dose.
SARS-CoV-2 International Studies
In addition to the clinical trial, University of Tennessee researchers evaluated the Recce 327 and Recce 529 compounds. Medical professionals are looking into the viability that the company's products could assist recovery in the respiratory illness.
In response, Recce plans to test the compounds on animals, with data available at the end of the calendar year.
Recce 435
The company has formulated a new oral antibiotic to fight against Helicobacter pylori (H. pylori) bacteria. The Murdoch Children's Research Institute entered an agreement with Recce to conduct a range of pre-clinical studies assessing Recce 435. The program is being carried out by the Mucosal Immunology Group at the MCRI, Royal Children's Hospital in Melbourne.
Management changes
During the reporting period, Recce expanded its management and advisory teams with a number of new appointments.
Dr Alan W Dunton joined the board as an independent non-executive director and member of the company's audit & risk/remuneration & nomination committees. Dr Dunton has previously led clinical research development teams through the regulatory review and commercialisation process.
Professor Phillip Sutton will lead the team working on the Recce 435's helicobacter pylori stomach development program. Mr Sutton has more than 30 years' experience of research, having served as the former head of immunology at CSL Limited (ASX: CSL).
And lastly, Mr James Graham was appointed CEO and Michele Dilizia as chief scientific officer. Both have been with the company since inception and will continue their roles as members of the board.
