Recce (ASX:RCE) share price shoots up 5% on new patent approval

The Recce Pharmaceuticals Ltd (ASX: RCE) share price is shooting up today after announcing that it received a new patent for its Recce 327 and 529 formulations.

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The Recce Pharmaceuticals Ltd (ASX: RCE) share price is shooting up today, after the company announced that it has been granted a patent for its Recce 327 and 529 formulations from the Japanese Patent Office (JPO).

At the time of writing, the Recce share price is up 5% to $1.14. In comparison, the All Ordinaries Index (ASX: XAO) is 0.6% higher to 6,780 points.

hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

What does Recce do?

Recce develops synthetic antibodies that aim to address the global health challenge of antibiotic resistance superbugs. The medical 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.

What's pushing the Recce share price higher?

The Recce share price is pushing higher today after the JPO granted 'Patent Family 3' to Recce's anti-infectives. Titled 'Anti-virus Agent and Method for Treatment of Viral Infection', the patent allows marketing and manufacturing monopolies until February 2037.

According to the release, the patents relate to antibiotic drug Recce 327, and the new anti-viral formulation, Recce 529.

Japan is the second largest pharmaceutical market in the world, only behind the United States. Recce's Patent Family 3 applications in other major pharmaceutical markets around the world are in their own advanced stages of independent patent reviews.

What did management say?

Recce CEO Mr James Graham commented:

Recce's intellectual property portfolio continues to grow in-line with our business strategy and the unprecedented global infectious disease crisis before us. At now 31 granted patents across 3 wholly-owned patent families, our market-monopolies reinforce our unique opportunity among a significant range of both bacterial and viral pathogens.

About the Recce share price

The Recce share price has been pushing higher in the last 12 months, with COVID-19 in the backdrop. The company fell to a 52-week low of 21 cents and skyrocketed to an all-time high of $1.87 in September.

Although sitting 39% below its record share price, Recce is continuing to expand its products into new markets and agreements.

The company has a market capitalisation of $197.2 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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