Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF), which is developing a new class of synthetic anti-infectives, has been awarded an Advanced Overseas Finding for A$43,774,907 in Synthetic Antibiotic Research & Development (R&D) applicable expenditure.
This has been awarded by AusIndustry, a division of the Australian Government’s Department of Industry, Innovation and Science.
The Advanced Overseas Finding is one of the largest awarded in Australian history as a pillar of the R&D Tax Incentive Program administered by the Australian Government.
“Crucial support”
Recce Pharmaceuticals CEO James Graham said: “We would like to express our gratitude to AusIndustry and the Department of Industry, Innovation and Science for their ongoing crucial support in advancing science and its practical applications, particularly in the development of innovative therapies with a global impact.”
This finding does not constitute a grant or an upfront payment of the amount awarded. It is a binding, underwritten guarantee provided by the Australian Government that affirms the company’s R&D activities are of national interest and extends the 43.5% R&D rebate from locally, to cover those undertaken by the company anywhere in the world.
R&D support
The Australian Government extends the R&D cash rebate to the company capturing its local and overseas R&D activities, for a period of three years to June 30, 2025.
With Recce’s anti-infective program predominantly focused on synthetic antibiotic development, the finding award will support the company’s cash position, in addition to the recent A$11 million capital raise and is received by the company as caveat-free, non-dilutive cash when claimed or drawn proportionately against through R&D funding facilities.
"This development is a further endorsement of the company’s growth potential and secures our caveat-free R&D funding long-term," Graham added.