Recce (ASX:RCE) share price charges higher on COVID-19 update

The Recce Pharmaceuticals Ltd (ASX:RCE) share price is pushing higher today after releasing an update on its COVID-19 studies…

The Recce Pharmaceuticals Ltd (ASX: RCE) share price is pushing higher on Wednesday after the release of an announcement.

In morning trade the pharmaceutical company's shares are up 4% to $1.12.

vaccine

Image source: Getty Images

Why is the Recce share price pushing higher?

Investors have been buying the company's shares this morning after it announced results from its international SARS-CoV-2 (COVID-19) in-vivo studies.

According to the release, the results demonstrate positive activity of RECCE 327 (R327) and RECCE 529 (R529) against the SARS-CoV-2 virus in Syrian golden hamsters.

The release explains that the study consisted of five groups of eight hamsters, each receiving a different treatment. These were a placebo control of saline nasal wash, a low dose of R327, a high dose of R327, a low dose of R529, and a high dose of R529.

All animals were infected with SARS CoV-2 on day zero, with treatments administered twice daily on days one to five.

The results, in both R327 and R529, demonstrated a positive reduction in COVID-19 viral load compared to the placebo group. On day four the low R529 dose achieved a log reduction in the order of 1.5 logs and the high dose of R327 achieved a log reduction of 1.25 logs.

However, two of the five hamsters with COVID-19 infection on day six indicated adverse clinical symptoms in the high dose R529 group and were excluded from the study. Though, management believes this is a study specific anomaly, because R529 was routinely well tolerated at considerably higher intravascularly infused doses in-vivo.

What now?

Management believes this hamster study is the first indication of the potential for nasal administration of its anti-infective compounds, specifically when used against viruses.

A gold-standard ferret COVID-19 study is underway in the United States seeking to build upon this method of administration. This includes higher dose concentrations and two other forms of administration, only possible in larger species. The data from this study is expected in early 2021.

Though, management has warned investors to not get too excited just yet. It commented: "Whilst Recce is delighted by the results, further testing must be completed before R327 or R529 are confirmed as being safe or effective against the SARS-CoV-2 virus."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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