'The largest unmet medical need in human health': Why this ASX biotech share is surging 28% today

Recce shares are flying high in Tuesday trade.

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Key points
  • Recce shares accelerate 28% to 73 cents after coming under severe selling pressure earlier this month
  • The company stated that its Recce 327 phase I study recorded good safety and tolerability among its 10 healthy male subjects in the cohort six dosing
  • The Independent Safety Committee will review the data and put forward a recommendation to commence recruiting for cohort seven

The Recce Pharmaceuticals Ltd (ASX: RCE) share price is rebounding after hitting a near multi-year low of 56 cents yesterday.

This comes after the pharmaceutical company provided an update on its development of a new class of synthetic anti-infectives.

At the time of writing, the ASX biotech share is soaring 28.32% to 73 cents.

Scientists in a laboratory look at a computer screen with anticipation on their faces.

Image source: Getty Images

What's pushing the Recce share price higher?

The company has reported positive results for its broad-spectrum antibiotic Recce 327 drug today.

The phase I study assessed the safety and tolerability of Recce 327 in patients with sepsis.

As such, investigators reviewed the data and found that all 10 male subjects indicated a good safety and tolerability record.

The healthy patients received the cohort six dosing at 4,000mg – an 80-fold increase from cohort one at 50mg.

Following the successful results, the Independent Safety Committee will carefully review the cohort six data. Once completed, the Committee will make a recommendation for the dosage limit and the commencement of testing with the next group of patients.

What did Recce management say?

Recce CEO James Graham commented:

We are pleased with these data which builds on previous results and strongly supports the potential of RECCE 327 as a new treatment option for patients with sepsis.

We look forward to continuing to work with the Independent Safety Committee and further evaluating RECCE 327's safety and tolerability profile in additional cohorts.

Recce is conducting the study at Adelaide's CMAX clinical trial facility. It is seeking to evaluate seven to 10 healthy subjects per dose across eight cohorts.

Recce is aiming to wrap up the phase I trial by the second quarter of 2022.

In addition, the PEW Charitable Trusts global antibiotic pipeline review noted that "R327 is the only clinical-stage new class of antibiotic in the world being developed for sepsis, the largest unmet medical need in human health".

Recce share price snapshot

The ASX biotech share has tumbled 33% in 2022 despite today's outstanding gains.

For context, the S&P/ASX 200 Healthcare (ASX: XHJ) sector is down 15% over the same time frame.

Based on today's price, Recce presides a market capitalisation of roughly $113.71 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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