Why the Recce Pharmaceuticals (ASX:REE) share price is storming higher today

The Recce Pharmaceuticals Ltd (ASX:RCE) share price is on the move on Tuesday following the release of an update on R327…

| 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

The Recce Pharmaceuticals Ltd (ASX: RCE) share price has been a positive performer on Tuesday.

In morning trade, the pharmaceutical company's shares are up 3.5% to $1.17.

This latest gain means the Recce Pharmaceuticals share price has now almost tripled in value over the last 12 months.

A drawing of a rocket follows a chart up, indicating share price lift

Image source: Getty Images

Why is the Recce Pharmaceuticals share price storming higher?

Investors have been buying Recce Pharmaceuticals shares this morning following the release of an update on its Recce 327 (R327) product.

According to the release, R327 has demonstrated bactericidal activity against all six antibiotic resistant ESKAPE pathogens. This includes drug resistant mutations (superbugs), as well as two additional World Health Organisation (WHO) priority pathogens list. The study was conducted by an independent Contract Research Organisation.

Management advised that the bactericidal activity of R327 demonstrated a three-log or 99.9% reduction in the number of colony forming units (CFUs) over 24 hours against all six strains at various concentrations and times.

What are ESKAPE pathogens?

These antibiotic resistant bacteria have been named 'ESKAPE' due to their propensity of escaping the biocidal action of antibiotics. They are collectively responsible for over 720,000 hospital acquired infections in the United States alone each year.

The ESKAPE pathogens include both Gram-positive and Gram-negative bacteria; Enterococcus faecium, Staphylococcus aureus, Klebsiella pneumoniae, Acinetobacter baumannii, Pseudomonas aeruginosa, and Enterobacter species.

The release explains that ESKAPE pathogens are also responsible for 42.2% of blood infections, around 50 million infections each year, resulting in one in five deaths in the community or one in three deaths in hospitals and are associated with higher lengths of stay, cost of care, and mortality compared with non-ESKAPE pathogens.

In light of this, there is a large market opportunity for a successful anti-infective product.

Recce Pharmaceuticals' CEO, James Graham, said: "We are encouraged by the data from this study and will continue to explore the potential of RECCE 327 to treat hospital-acquired infections. Antimicrobial resistance is one of the most urgent threats to global public health with the suite of ESKAPE pathogens posing a significant threat due to their virulence and rapid development of drug resistance."

"Additionally, with R327 effective against two more priority pathogens listed by the WHO, we believe reinforces the potential of R327 to treat some of the greatest threats to human health," he concluded.

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 Gainers

Man in a business suit leaps off a boulder in front of a blue sky.
Share Gainers

3 ASX 200 stocks surging 13% to 36% in this shortened trading week

Investors sent these three ASX 200 stocks flying higher following the Easter break. But why?

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Amaero, Mesoblast, Telix, and Tivan shares are charging higher today

These shares are ending the week on a high. But why?

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Energy Shares

Up 635% in one year, guess which ASX energy share is rocketing again on Friday

Investors are bidding up this surging ASX energy share again today. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Bendigo Bank, EBR Systems, Strickland, and Woodside shares are rising today

These shares are rising on Thursday. But why? Let's find out.

Read more »

A man clenches his fists with glee having seen the share price go up on the computer screen in front of him.
BNPL shares

Are Zip shares still a buy after soaring 20%

Zip shares are now 67% higher than this time 12 months ago.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Share Gainers

Why Bank of Queensland, Guzman Y Gomez, NextDC, and Telix shares are racing higher today

These shares are starting the week in a positive fashion. But why?

Read more »

An old-fashioned news boy stands on a stool and yells through a microphone in an open field.
Share Market News

Why is everyone talking about Telix, Bank of Queensland and NextDC shares today?

Bank of Queensland, Telix, and NextDC shares are grabbing headlines on Tuesday. But why?

Read more »

Small chocolate bunnies.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough end to the short trading week.

Read more »