The Recce Pharmaceuticals Ltd (ASX: RCE) share price is rocketing higher today following an update on its Recce 327 product.
In early trade, the medical company's share price hit an intra-day high of $1.19, but has since retreated to $1.12, up 6%.
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What does Recce do?
Recce is involved in the advancement of synthetic antibodies designed to address the global health challenge of antibiotic resistance superbugs. The pharmaceutical company's flagship drug, Recce 327, is being developed to treat blood infections and sepsis.
The group operates solely in research and development, and is located in both Australia and the United States.
Start of trials
Recce announced it had received an ethics approval to start clinical trials of its broad-spectrum antibiotic Recce 327 drug. The Human Research Ethics Committee (HREC) assessed the anti-viral formula and deemed it met ethical studies and guidelines.
Start of the phase I/II study will assess the efficacy of Recce 327 against infectious bacteria on burn wounds. The trial will involve up to 30 patients before expanding to a comparative effectiveness study based on the data. Over the 14 days, 10 patients will receive Recce 327 daily while a further 20 patients will receive treatment three times per week.
Once the trial period is completed, investigators will review the results and decide upon the best standards of care for future programs. In addition, burn wound specialists will oversee the delivery of Recce 327 via a spray-on-formulation.
The Health Department's South Metropolitan Health Service in Western Australia is expected to sponsor the trial. The Fiona Stanley Hospital (Burns Unit) in Perth is the nominated location.
Recce chair Dr John Prendergast said:
Human ethics approval is another milestone for Recce and the clinicians seeking effective treatments to combat the scourge of antibiotic resistant bacteria. Achieving this goal speaks to the dedication of our clinical and research team as we continue to build on our clinical and commercial potential.
Should you invest?
I think that Recce has a promising future. If the company can deliver on its Recce 327 and Recce 529 compounds, then its share price could reach higher. It was only last month, the company updated the market on its fight against COVID-19.
At a market capitalisation of $194 million, the Recce share price has jumped 322% since this time last year. However, it is sitting almost 40% below its all-time high achieved in mid-September.
