Recce Pharmaceuticals (RCE) H2 2025 earnings summary

Executive summary

• Advanced late-stage clinical pipeline for synthetic anti-infectives targeting antimicrobial resistance, with lead candidate R327G in Phase 3 trials for diabetic foot infections (DFI) in Indonesia and planned for Australia.

• Achieved strong Phase II results for R327G in acute bacterial skin and skin structure infections (ABSSSI), meeting all efficacy endpoints and showing no serious adverse events.

• Secured significant funding: A$15.8 million capital raise, A$11.5 million debt facility (up to A$30 million available), and US$2 million US Department of Defense grant.

• Expanded global intellectual property with new patents granted in Australia, Japan, and China, extending protection to 2041.

• Strengthened strategic partnerships, including a Cooperative Research and Development Agreement with the US Army Medical Research Institute of Infectious Diseases.

Financial highlights

• Total other income: $7.7 million (2024: $5.2 million), primarily from R&D tax incentives and grants.

• Operating loss increased to $21.4 million (2024: $17.7 million), driven by higher R&D and employee expenses.

• Loss per share: 9.04 cents (2024: 9.97 cents).

• Cash and cash equivalents at year-end: $10.4 million (2024: $4.4 million).

• Net cash outflow from operating activities: $20.4 million (2024: $13.0 million).

Outlook and guidance

• Registrational Phase 3 trial in Indonesia for R327G expected to conclude within 12 months, targeting regulatory approval and commercial launch in H1 2026.

• Planned Phase 3 trial in Australia for DFI to support US FDA submission.

• Phase II trial for R327 IV in UTI/urosepsis to commence in FY26.

• Sufficient cash runway and financing facilities to support near-term milestones.