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Recce Pharmaceuticals Ltd. (AU:RCE)
:RCE

Recce Pharmaceuticals Ltd. (RCE) AI Stock Analysis

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AU

Recce Pharmaceuticals Ltd.

(Sydney:RCE)

Rating:43Neutral
Price Target:
AU$0.50
▲(56.25%Upside)
The overall stock score for Recce Pharmaceuticals Ltd. is primarily impacted by its weak financial performance characterized by consistent losses and high leverage. The technical analysis provides a neutral outlook, while the negative P/E ratio highlights valuation concerns. The absence of earnings call data and significant corporate events limits additional insights.

Recce Pharmaceuticals Ltd. (RCE) vs. iShares MSCI Australia ETF (EWA)

Recce Pharmaceuticals Ltd. Business Overview & Revenue Model

Company DescriptionRecce Pharmaceuticals Ltd. (RCE) is a biotechnology company specializing in the research and development of new classes of synthetic anti-infectives. Headquartered in Australia, the company focuses on addressing the growing global threat of antibiotic-resistant superbugs. Recce is primarily involved in the development of its lead compound, RECCE® 327, along with other proprietary compounds intended to combat a wide range of bacterial infections and sepsis.
How the Company Makes MoneyRecce Pharmaceuticals Ltd. generates revenue through the development and potential commercialization of its proprietary anti-infective compounds. The company is largely in the research and development phase, with funding primarily from investors, grants, and strategic partnerships. Revenue streams are expected to include licensing agreements and royalty payments upon successful commercialization of its compounds. Significant partnerships with pharmaceutical companies or research institutions may also contribute to funding and eventual earnings, although direct product sales are not yet realized as the products are still under clinical development.

Recce Pharmaceuticals Ltd. Financial Statement Overview

Summary
Recce Pharmaceuticals Ltd. faces significant financial challenges characterized by consistent losses, negative cash flows, and high leverage. While the company has managed to sustain cash through financing, its operational inefficiencies and high debt levels present substantial risks. Strategic adjustments are needed to achieve financial stability and growth.
Income Statement
35
Negative
Recce Pharmaceuticals Ltd. has seen fluctuating revenues with a recent decline to zero, indicating significant challenges in generating sales. The persistent negative EBIT and EBITDA margins highlight ongoing operational inefficiencies and high costs relative to revenue. The net profit margin remains negative, reflecting sustained losses.
Balance Sheet
20
Very Negative
The company exhibits a negative stockholders' equity, indicating an excess of liabilities over assets. A high debt-to-equity ratio and low equity ratio underscore financial instability and high leverage, posing significant risks for the company's financial health and future financing capabilities.
Cash Flow
40
Negative
Operating cash flow remains negative, reflecting challenges in generating cash from operations. However, the company has managed to maintain financing inflows, which have supported cash reserves. Free cash flow remains negative, posing challenges for sustainability without further financing.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
6.95M6.85M4.37M3.08M1.64M1.12M
Gross Profit
-1.62M-366.77K4.15M2.90M1.34M920.91K
EBIT
-26.90M-22.05M-17.33M-14.15M-15.36M-5.41M
EBITDA
-19.12M-21.35M-16.99M-10.80M-14.77M-5.13M
Net Income Common Stockholders
-17.94M-17.66M-13.08M-10.99M-13.51M-4.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.94M4.42M1.56M11.58M20.87M2.68M
Total Assets
4.21M6.37M2.56M12.62M21.68M3.24M
Total Debt
4.74M811.19K250.57K74.76K126.95K83.23K
Net Debt
2.80M-3.60M-1.31M-11.51M-20.75M-2.60M
Total Liabilities
9.19M15.89M5.14M2.56M1.18M931.53K
Stockholders Equity
-4.99M-9.52M-2.59M10.06M20.50M2.31M
Cash FlowFree Cash Flow
-13.47M-13.15M-12.73M-9.05M-7.93M-3.81M
Operating Cash Flow
-13.42M-13.01M-12.69M-9.01M-7.86M-3.81M
Investing Cash Flow
-409.57K-141.90K-38.63K-40.34K-76.01K-5.94K
Financing Cash Flow
11.76M16.00M2.71M-240.50K26.12M6.09M

Recce Pharmaceuticals Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.32
Price Trends
50DMA
0.31
Negative
100DMA
0.37
Negative
200DMA
0.43
Negative
Market Momentum
MACD
<0.01
Positive
RSI
44.02
Neutral
STOCH
25.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCE, the sentiment is Negative. The current price of 0.32 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.31, and below the 200-day MA of 0.43, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RCE.

Recce Pharmaceuticals Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUPTX
56
Neutral
AU$38.66M-36.95%11.11%
54
Neutral
$5.31B3.29-45.39%2.79%16.77%-0.07%
AUPYC
53
Neutral
AU$699.91M-112.97%-84.82%
AURCE
43
Neutral
AU$83.84M
-33.01%
AUALA
40
Underperform
AU$89.97M-85.35%315.11%51.16%
AUBIT
36
Underperform
AU$3.32M-119.28%64.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RCE
Recce Pharmaceuticals Ltd.
0.30
-0.22
-42.31%
AU:PTX
Prescient Therapeutics Limited
0.05
0.00
0.00%
AU:BIT
Biotron
0.01
-0.04
-78.00%
AU:PYC
PYC Therapeutics Limited
1.20
0.16
15.38%
AU:ALA
Arovella Therapeutics Limited
0.08
-0.06
-42.86%

Recce Pharmaceuticals Ltd. Corporate Events

Recce Pharmaceuticals Completes A$15.8 Million Capital Raising to Fund Phase 3 Trials
Jun 3, 2025

Recce Pharmaceuticals Ltd has successfully completed a capital raising of A$15.8 million, including a shortfall placement of approximately 26.4 million shares to existing institutional and sophisticated investors, raising A$7.4 million. The funds will support significant Phase 3 clinical trials for topical treatments in Indonesia and Australia, aiming for commercialization and an Investigational New Drug Application to the US FDA. This capital raising marks a crucial step for Recce as it progresses towards establishing a new standard of care in infectious diseases, potentially improving patient outcomes and enhancing the company’s market position.

Recce Pharmaceuticals Expands Patent Portfolio to China
May 26, 2025

Recce Pharmaceuticals Ltd. has received a Notice of Acceptance from the China National Intellectual Property Administration for its patent on anti-infectives, extending its patent portfolio to the world’s second-largest pharmaceutical market. This development is significant as it validates Recce’s innovative treatments for various infections and enhances its market positioning, potentially benefiting stakeholders by tapping into a growing Chinese antibiotic market projected to expand at a CAGR of 5.7% from 2025 to 2030.

FIL Limited Increases Stake in Recce Pharmaceuticals
May 20, 2025

FIL Limited has increased its stake in Recce Pharmaceuticals Ltd., now holding 16,755,072 shares, which represents a 6.40% voting power in the company. This change in substantial holding reflects FIL Limited’s continued investment in Recce Pharmaceuticals, potentially signaling confidence in the company’s strategic direction and its innovative approach to tackling antibiotic resistance, which could have significant implications for stakeholders and the broader pharmaceutical industry.

Recce Pharmaceuticals Director Increases Shareholding
May 16, 2025

Recce Pharmaceuticals Ltd announced a change in the director’s interest, with Dr. John Prendergast acquiring 51,136 fully paid ordinary shares through participation in the company’s pro-rata non-renounceable entitlement offer. This acquisition reflects an increase in Dr. Prendergast’s holdings, potentially signaling confidence in the company’s strategic direction and financial health, which may positively influence stakeholder perception and market positioning.

Recce Pharmaceuticals Raises A$8.4 Million to Advance Phase 3 Trials
May 16, 2025

Recce Pharmaceuticals Ltd. successfully completed an entitlement offer, raising approximately A$3.4 million from existing shareholders, contributing to a total of A$8.4 million raised including a previous placement. This funding will support Phase 3 clinical trials for Diabetic Foot Infection in Indonesia and Acute Bacterial Skin and Skin Structure Infections in Australia, with an aim for commercialization and revenue generation by 2026. The company expressed gratitude towards its shareholders for their support and highlighted the importance of these trials as a catalyst for future revenue.

Recce Pharmaceuticals Announces Quotation of New Securities on ASX
May 16, 2025

Recce Pharmaceuticals Ltd has announced the quotation of 12,273,033 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of May 16, 2025. This move is part of previously announced transactions and is expected to enhance the company’s financial position, potentially impacting its market presence and stakeholder interests positively.

Recce Pharmaceuticals Secures Canadian R&D Rebate
May 5, 2025

Recce Pharmaceuticals Ltd announced the receipt of a US$175,122 rebate from the Canadian Government under the SR&ED Tax Incentive program, which supports R&D activities in Canada. This rebate complements the Australian government’s R&D Tax Incentive, highlighting Recce’s expanding research efforts and the international support for their innovative anti-infective developments.

Recce Pharmaceuticals Updates Securities Issue Timeline
Apr 30, 2025

Recce Pharmaceuticals Ltd has announced an update to its previous announcement regarding the proposed issue of securities. The company has revised the dates for the offer closing, trading commencement on a deferred settlement basis, and the issue date, among others. This update is crucial for stakeholders as it outlines the timeline for the securities offering, which could impact the company’s financial strategy and market positioning.

Recce Pharmaceuticals Extends Entitlement Offer Deadline
Apr 30, 2025

Recce Pharmaceuticals Ltd has announced an extension of the closing date for its pro-rata non-renounceable entitlement offer, allowing eligible shareholders more time to participate. The offer aims to raise up to $10.8 million and provides an opportunity for shareholders to apply for additional shares under the shortfall offer, potentially impacting the company’s financial position and market operations.

Recce Pharmaceuticals Partners with USAMRIID for Biodefense Pathogen Testing
Apr 28, 2025

Recce Pharmaceuticals has entered into a Cooperative Research and Development Agreement with the United States Army Medical Research Institute of Infectious Diseases (USAMRIID), supported by the Defense Threat Reduction Agency. This agreement will involve testing Recce’s synthetic anti-infective, RECCE 327, against biodefense pathogens in USAMRIID’s high biocontainment facilities. This partnership complements a recent US$2 million grant from the U.S. Department of Defense for a burn wound program, enhancing Recce’s collaboration with U.S. Government initiatives and potentially advancing the development of R327 as a treatment for severe infections.

Recce Pharmaceuticals Updates Investors on Clinical Progress and Funding
Apr 23, 2025

Recce Pharmaceuticals Ltd announced the availability of a recording from their recent investor webinar, where company executives discussed updates on clinical activities and the outlook for upcoming Phase 3 trials. They also detailed a recent AUD ~$15.8 million Placement and Entitlement Offer, which will support their clinical activities as they move towards commercialization in 2026.

Recce Pharmaceuticals Announces $10.8 Million Entitlement Offer to Fund Clinical Trials
Apr 22, 2025

Recce Pharmaceuticals Ltd has announced a pro-rata non-renounceable entitlement offer to raise approximately $10.8 million, aimed at funding Phase III clinical trials and other development programs. The offer is available to eligible shareholders in specific regions, while ineligible shareholders have been notified of their exclusion due to cost and regulatory considerations. The funds will support trials in Indonesia and Australia, as well as additional clinical activities and working capital, positioning the company for potential revenue generation in 2026.

Recce Pharmaceuticals Opens Entitlement Offer to Raise $10.8 Million
Apr 22, 2025

Recce Pharmaceuticals Ltd. has announced the opening of a pro-rata non-renounceable entitlement offer, allowing eligible shareholders to purchase one new share for every six shares held at an issue price of $0.28 per share. This offer aims to raise approximately $10.8 million before costs, with the funds potentially enhancing the company’s operational capabilities and market position.

Recce Pharmaceuticals Expands Phase II Trial for Diabetic Foot Infections
Apr 22, 2025

Recce Pharmaceuticals Ltd. has received Human Research Ethics Committee approval to expand its Phase II clinical trial for the RECCE® 327 Topical Gel, allowing up to 20 additional diabetic patients with foot infections to participate. This decision follows promising Phase II results, where the gel showed high efficacy in treating acute bacterial skin and skin-structure infections, including diabetic foot ulcer infections. The study aims to address the urgent need for effective treatments, as diabetic foot infections have high recurrence rates and can lead to severe complications. The trial will run alongside Recce’s Phase 3 programs in Indonesia and Australia, further supporting the company’s clinical momentum and data portfolio.

Recce Pharmaceuticals Raises A$5 Million Through Share Placement
Apr 17, 2025

Recce Pharmaceuticals Ltd. has announced the issuance of 17,857,143 fully paid ordinary shares, raising A$5.0 million as part of a recent placement. This move is aligned with the company’s ongoing efforts to fund additional clinical trials, for which they are in the process of obtaining necessary approvals, potentially enhancing their position in the pharmaceutical industry by advancing their anti-infective product pipeline.

Recce Pharmaceuticals Secures Funding for Advanced Clinical Trials
Apr 17, 2025

Recce Pharmaceuticals Ltd has successfully completed a A$5.0 million placement of new shares to support Phase 3 clinical trials for diabetic foot infection in Indonesia and acute bacterial skin infections in Australia. Additionally, the company is launching a pro-rata entitlement offer to raise up to A$10.8 million, further bolstering its financial resources for ongoing clinical developments. These financial maneuvers are expected to strengthen Recce’s position in the pharmaceutical industry, particularly in addressing unmet medical needs related to antibiotic resistance.

Recce Pharmaceuticals Announces Quotation of New Securities on ASX
Apr 17, 2025

Recce Pharmaceuticals Ltd has announced the quotation of 17,857,143 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code RCE. This move is part of previously announced transactions and may enhance the company’s financial flexibility and market presence, potentially impacting its operational capabilities and stakeholder interests positively.

Recce Pharmaceuticals Announces Investor Webinar and Funding Update
Apr 15, 2025

Recce Pharmaceuticals Ltd. announced an upcoming investor webinar where key executives will discuss recent clinical activities, the outlook for Phase 3 clinical trials, and details of a recent AUD ~$15.8 million Placement and Entitlement Offer. This funding is pivotal for supporting Recce’s clinical activities as it progresses towards commercialization in 2026, potentially strengthening its position in the pharmaceutical industry and offering significant implications for stakeholders.

Recce Pharmaceuticals Launches Equity Raising Initiative
Apr 10, 2025

Recce Pharmaceuticals Limited announced an equity raising initiative through a placement and entitlement offer of new fully paid ordinary shares. This move is aimed at bolstering the company’s financial resources to further its development and commercialization efforts. The offer is restricted to certain jurisdictions, emphasizing compliance with applicable securities laws, and is not available to investors in the United States.

Recce Pharmaceuticals Announces Capital Raising Initiatives
Apr 10, 2025

Recce Pharmaceuticals Ltd. announced a $5 million placement to an Australian private investor and a pro-rata non-renounceable entitlement offer to raise approximately $10.8 million. The capital raising initiatives are expected to affect shareholder control dynamics, with potential dilution for existing shareholders due to the placement and entitlement offer.

Recce Pharmaceuticals Secures A$15.8 Million for Phase III Trials
Apr 10, 2025

Recce Pharmaceuticals Ltd has announced a capital raising initiative totaling approximately A$15.8 million, consisting of a A$5.0 million placement from an Australian-based private investor and a A$10.8 million entitlement offer to shareholders. The funds will support Phase III clinical trials for diabetic foot infections in Indonesia and acute bacterial skin and skin structure infections in Australia, with the potential to generate revenue by 2026. This capital raise is seen as a pivotal step for Recce, potentially enhancing its market position and offering significant value to shareholders as it progresses with its clinical trials.

Recce Pharmaceuticals Announces Proposed Securities Issue
Apr 10, 2025

Recce Pharmaceuticals Ltd announced a proposed issue of securities, with a total of 38,645,269 ordinary fully paid securities to be issued through a standard pro rata issue and an additional 17,857,143 securities through a placement. This move is likely aimed at raising capital to support the company’s operations and strategic initiatives, potentially enhancing its market position and providing opportunities for stakeholders.

Recce Pharmaceuticals Unveils Strategic Focus on Synthetic Anti-Infectives
Mar 20, 2025

Recce Pharmaceuticals Ltd has released a corporate presentation detailing its focus on developing and commercializing synthetic anti-infectives. The presentation outlines the company’s strategic intentions and future plans, although it emphasizes that these are subject to various risks and uncertainties. The company disclaims any responsibility for the accuracy or completeness of the information provided, and it does not constitute an offer to sell or buy securities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.