Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has received an A$5,339,202 cash refund from the Australian Taxation Office under the Research and Development (R&D) Tax Incentive for the financial year ended June 30, 2025.
The payment relates to eligible R&D activities undertaken both in Australia and offshore, and was received in cash.
Recce is developing a new class of synthetic anti-infectives, noted the Federal Government’s 43.5% R&D Tax Incentive can apply to qualifying activities undertaken globally.
In addition, the company has lodged a further R&D Tax Incentive submission covering additional eligible activities. Subject to ATO review and approval, Recce expects an additional cash refund of about A$3 million, which it said would complete its FY25 R&D rebate and provide further non-dilutive funding.
Recce Pharmaceuticals' CEO, James Graham, said, “This substantial rebate will go towards funding our R&D programs, both locally and overseas, including our ongoing Phase 3 Clinical Trial in Indonesia, and further domestic clinical programs. The funds received provide further confidence in our objectives and support the continued progression of Recce’s anti-infective portfolio. We appreciate the Australian Government’s ongoing commitment to supporting innovation and R&D, and we look forward to delivering important milestones as we advance our new class of synthetic anti-infectives.”
About Recce Pharmaceuticals
Recce is developing a new class of synthetic anti-infectives aimed at tackling infections caused by antibiotic-resistant bacteria.
The company’s pipeline includes three patented, broad-spectrum synthetic polymer candidates: RECCE® 327 (R327), being developed as an intravenous and topical treatment for serious and potentially life-threatening Gram-positive and Gram-negative bacterial infections, including resistant “superbug” strains; RECCE® 435 (R435), an oral therapy for bacterial infections; and RECCE® 529 (R529), which is being developed for viral infections.
Recce says its candidates use multi-layered mechanisms of action designed to limit the ability of bacteria and viruses to develop resistance, addressing a key limitation of many existing antibiotics.
The World Health Organization has included R327, R435 and R529 on its list of antibacterial products in clinical development for priority pathogens. In the US, the FDA has granted R327 Qualified Infectious Disease Product (QIDP) designation under the GAIN Act, which can provide Fast Track status and 10 years of market exclusivity following approval. R327 is also listed on The Pew Charitable Trusts’ Global New Antibiotics in Development Pipeline as the only synthetic polymer and sepsis drug candidate in development.
Recce said it wholly owns its automated manufacturing capability, supporting its current clinical trial activities, and is targeting areas of unmet medical need by leveraging its proprietary technology platform.