Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) earlier this week confirmed it had entered a second Cooperative Research and Development Agreement with the United States Army Institute of Surgical Research to evaluate its synthetic antibiotic RECCE® 327 Gel as a treatment for infected burn wounds.
Managing director and CEO James Graham said the agreement represented a major step forward for the company’s defence-focused research efforts and marked its second CRADA with the US Army, as well as its third research program with the US Department of Defense. He said infected burn wounds remain one of the most serious medical challenges faced by frontline warfighters.
Interview highlights
- Recce Pharmaceuticals signed a second CRADA with the US Army
- Agreement involves USAISR evaluating R327G for infected burn wounds
- R327G is a synthetic antibiotic designed to overcome resistance
- Company is the only clinical-stage synthetic antibiotic globally, according to WHO
- R327G continues to work with repeated use
- Same formulation is in Phase III trials for diabetic foot infections
- Edison Research values the company at $3 per share
Proactive: Welcome back to Proactive Investors. Today I’m joined by James Graham, managing director and CEO of Recce Pharmaceuticals, which is listed on the ASX and Frankfurt exchanges. The company is developing a new class of synthetic anti-infectives targeting antibiotic-resistant superbugs. James, welcome.
James Graham: Good to be with you.
Proactive: You’re working with the US Army. This is the second or third agreement. Why is this important?
James Graham: This is very significant, not only for Recce Pharmaceuticals but also for the frontline warfighter. This is our second CRADA with the US Army and our third research program with the US Department of Defense. We are testing against staphylococcal bacteria in a burn wound model, which addresses one of the greatest challenges in antibiotic resistance today.
Proactive: Is anyone else doing something similar?
James Graham: According to the World Health Organization, we are the only clinical-stage synthetic antibiotic in the world at this time. We are also the first new class of antibiotic in over 40 years.
Proactive: What makes your antibiotic different?
James Graham: It comes down to mechanism of action. Traditional antibiotics are naturally derived and bacteria mutate to survive them. Our antibiotic is synthetic and continues to work with repeated use.
Proactive: How did the US Army collaboration come together?
James Graham: It was a very comfortable relationship. Our burn wound program previously involved Professor Fiona Wood, and the results were very successful, which supported a seamless entry into the US program.
Proactive: Are there other military or civilian applications?
James Graham: Yes. The same product is in Phase III trials for diabetic foot infections. This complements military and civilian healthcare needs, including potential Veterans Affairs use.
Proactive: Edison recently valued the company at $3 per share. Are you comfortable with that?
James Graham: When the WHO identifies antibiotic resistance as one of the greatest threats to human health, and recognises our antibiotic as the only new class at this stage, those valuations are just the beginning.