Not even the release of a positive announcement has been able to stop the Recce Pharmaceuticals Ltd (ASX: RCE) share price from dropping today.
In afternoon trade, the biotechnology company's shares are down 2.5% to 94 cents.
What did Recce announce?
This afternoon Recce Pharmaceuticals announced that the European Patent Office has granted patents relating to Recce 327 (R327) and Recce 529 (R529).
R327 has been developed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria. This includes their superbug forms.
Whereas R529 is a new synthetic polymer formulation with indication against viruses. Recce is currently undertaking initial studies of R529 to indicate any potential therapeutic effect against COVID-19.
What were the patents?
According to the release, the European Patent Office granted claims relating to the composition/method of manufacture of RECCE anti-infectives, the administration of R327 or R529 by oral, injection, inhalation, and transdermal dose applications, and the use of R327 or R529 for the treatment of viruses having a lipid envelope or coat. These includes coronaviruses, influenza viruses, HIV, hepatitis, Ross River and herpes viruses.
Management believes this is a big positive given the size of the European market. It notes that Europe represents one of the largest anti-viral therapies markets in the world, valued at US$11.40 billion (A$14.93 billion) in 2019. It is expected to reach US$21.12 billion (A$27.66 billion) by 2027.
Recce's Chief Executive Officer, James Graham, said: "Recce's intellectual property portfolio continues to grow in-line with our business strategy and the unprecedented global infectious disease crisis before us. Our market-monopolies reinforce our unique opportunity among a significant-range of both bacterial and viral pathogens."
Today's decline means the Recce share price is now down by 14% since the start of the year. Though, it is worth noting that it is up 275% over the last 12 months.
