Recce Pharmaceuticals (ASX:RCE) share price tumbles despite positive update

The Recce Pharmaceuticals Ltd (ASX:RCE) share price is under pressure on Tuesday despite the release of a positive update…

| More on:

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

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.

A businessman in front of a computer with his head on his hand in disbelief, indicating poor IPO or share price performance

Image source: Getty Images

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.

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.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why DroneShield, Hub24, Syrah, and Weebit Nano shares are sinking today

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

Read more »

A worried woman sits at her computer with her hands clutched at the bottom of her face.
Share Fallers

These 3 ASX 200 shares have hit fresh multi-year lows: Buy, sell or hold?

One of these stocks has crashed over 50% over the past year alone.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Brazilian Rare Earths, L1 Group, Silver Mines, and Xero shares are dropping today

These shares are having a poor session on Thursday. But why?

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand.
Travel Shares

Qantas stock is down 17.7% in a month. Time to buy?

Qantas is back to April prices.

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop in front of him.
Share Fallers

Why Amplitude Energy, Atlas Arteria, Computershare, and Woodside shares are falling today

These shares are falling on hump day. But why?

Read more »

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.
Energy Shares

Why is this ASX 300 energy share crashing 42% on Wednesday?

Investors are pummelling the ASX energy share on Wednesday. But why?

Read more »

Three sky divers 'falling with style'.
Share Fallers

4 ASX All Ords shares at 52-week lows: Buy, hold, or sell?

Three of these stocks have more than halved in value over the past 12 months.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today

These shares are out of form on Tuesday. But why?

Read more »