Why is the Recce (ASX:RCE) share price falling today?

The Recce (ASX: RCE) share price is down 1.85% today after the company released its quarterly activities report.

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The Recce Pharmaceuticals Ltd (ASX: RCE) share price is slipping today after the company released its quarterly activities report.

At the time of writing, the Recce share price is down 1.85% to $1.06 per share.

Recce is a drug discovery and development business commercialising a new class of synthetic antibiotics with a broad-spectrum activity designed to address the global health challenge of antibiotic-resistant superbugs.

Its patented lead drug candidate is a synthetic anti-infective, which has been developed to treat blood infections and sepsis derived from E. coli and S. aureus bacteria, including their superbug forms.

Recce’s quarterly performance and cash flow

The Recce share price is down today despite a reasonably strong reported performance from the medical company. Recce announced a cash position of $22.92 million and has just listed on the Frankfurt Stock Exchange under the code R9Q.

The company dual-listed on the Frankfurt Stock Exchange, seeing trade of the company’s securities on German trading exchanges at Frankfurt, Tradegate, Munich, Stuttgart and Gettex.

No associated capital raise or related issuance of securities was necessary because of the company’s financial position. Investor awareness activities are underway in the region, with Recce hoping to further broaden its institutional and retail investor base across Europe.

Recce pharmaceutical trials

Recce reported progress has also been made in its pharmaceuticals trials.

The company has formalised a topical Phase I/II burns study with the West Australian Health Department and Fiona Stanley Hospital. The study aims to assess a Recce drug as a spray-on, broad-spectrum antibiotic to treat topical burn wound infections.

A Phase I clinical study is progressing at Adelaide’s CMAX facility. The study seeks to evaluate the same drug’s safety, tolerability, pharmacokinetics, and pharmacodynamic profile following intravenous administration. 

Meanwhile, the company reports encouraging results from an anti-viral screening program, evaluating one of Recce’s patents, R327, against SARS-CoV-2 (coronavirus).

Further testing (underway overseas) must be completed before R327 may be confirmed as active or safe in use against the SARS-CoV-2 virus.

Recce share price snapshot

The Recce share price is down 2.7% year-to-date but has lifted 186% over the past 12 months.

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Motley Fool contributor Lucas Radbourne-Pugh 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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