Here's why the Recce (ASX:RCE) share price has fallen 7% today

Shareholders in Recce Pharmaceuticals Ltd (ASX: RCE) have been hitting the sell button following the release of its quarterly update.

| More on:

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »