tiprankstipranks
Trending News
More News >
Recce Pharmaceuticals Ltd. (AU:RCE)
:RCE

Recce Pharmaceuticals Ltd. (RCE) AI Stock Analysis

Compare
18 Followers

Top Page

AU:RCE

Recce Pharmaceuticals Ltd.

(Sydney:RCE)

Select Model
Select Model
Select Model
Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
AU$0.52
▲(27.80% Upside)
The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and negative margins. While technical analysis shows bullish momentum, overbought indicators suggest caution. The valuation is weak due to negative earnings and no dividend yield.
Positive Factors
Innovative Product Pipeline
Recce Pharmaceuticals' focus on developing RECCE 327 positions it well to address the global challenge of antibiotic resistance, potentially leading to significant market opportunities and revenue streams if successful.
Positive Cash Flow Growth
The strong growth in free cash flow indicates Recce's improving ability to generate cash, which is crucial for funding ongoing R&D and supporting future expansion without relying excessively on external financing.
Return on Equity
Despite negative equity, a positive return on equity indicates that Recce is effectively using its resources to generate returns, which can be a sign of potential operational efficiency and management effectiveness.
Negative Factors
Declining Revenue
The significant decline in revenue growth poses a challenge to Recce's financial stability and could hinder its ability to invest in R&D and commercialize its products effectively.
Negative Margins
Substantial negative margins indicate that Recce is incurring significant losses relative to its revenue, which may impact its long-term viability and ability to sustain operations without external support.
High Leverage
High leverage and negative equity suggest financial instability, increasing the risk of financial distress and limiting Recce's ability to invest in growth opportunities or withstand economic downturns.

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

Recce Pharmaceuticals Ltd. Business Overview & Revenue Model

Company DescriptionRecce Pharmaceuticals Ltd, a biotechnology company, engages in the research, development, and commercialization of synthetic anti–infectives in Australia, the United States, and the United Kingdom. The company's lead candidate is RECCE 327 to treat blood infections and sepsis derived from E. coli and S. aureus bacteria, including their superbug forms. It also develops RECCE 529, a synthetic anti-infective for viral infections; and RECCE 435, a synthetic polymer anti-infective. The company was formerly known as Recce Limited and changed its name to Recce Pharmaceuticals Ltd in November 2017. Recce Pharmaceuticals Ltd was incorporated in 2007 and is headquartered in Sydney, Australia.
How the Company Makes MoneyRecce Pharmaceuticals generates revenue primarily through the advancement of its product candidates in clinical trials and potential future commercialization. The company may secure funding through various means, including government grants, equity financing, and partnerships with larger pharmaceutical companies for co-development and licensing agreements. Additionally, if successful in its clinical trials, Recce could earn revenue from product sales, royalties, and milestone payments from collaborators and partners. Strategic alliances with research institutions and other biotech firms could also provide additional funding and resources, contributing to the overall financial health of the company.

Recce Pharmaceuticals Ltd. Financial Statement Overview

Summary
Recce Pharmaceuticals Ltd. is facing significant financial challenges, with declining revenues, negative margins, and high leverage. Despite some positive cash flow growth, the overall financial health is concerning, with substantial risks due to negative equity and ongoing losses.
Income Statement
25
Negative
Recce Pharmaceuticals Ltd. has experienced declining revenue growth, with a significant drop of 21.73% in the latest year. The company is facing negative margins across the board, with a net profit margin of -285.37% and an EBIT margin of -271.76%, indicating substantial losses relative to revenue. The gross profit margin is also negative, reflecting challenges in covering production costs.
Balance Sheet
30
Negative
The company's balance sheet shows a concerning debt-to-equity ratio of -3.53, indicating high leverage and negative equity. Despite this, the return on equity is positive at 7.02%, suggesting some efficiency in generating returns from equity, albeit with significant risk due to negative equity.
Cash Flow
40
Negative
The cash flow statement reveals a positive free cash flow growth rate of 51.97%, which is a positive sign. However, the operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net losses. The free cash flow to net income ratio is slightly above 1, showing that free cash flow is in line with net income.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.51M7.51M5.03M4.37M3.08M1.64M
Gross Profit-2.94M-2.94M-2.19M4.15M2.90M1.34M
EBITDA-20.28M-20.33M-21.35M-16.99M-13.87M-14.77M
Net Income-21.43M-21.43M-17.66M-13.08M-10.99M-13.51M
Balance Sheet
Total Assets12.41M12.41M6.37M2.56M12.62M21.68M
Cash, Cash Equivalents and Short-Term Investments10.45M10.45M4.42M1.56M11.58M20.87M
Total Debt10.77M10.77M811.19K250.57K74.76K126.95K
Total Liabilities15.47M15.47M15.89M5.14M2.56M1.18M
Stockholders Equity-3.05M-3.05M-9.52M-2.59M10.06M20.50M
Cash Flow
Free Cash Flow-20.47M-20.47M-13.15M-12.73M-9.05M-7.93M
Operating Cash Flow-20.44M-20.44M-13.01M-12.69M-9.01M-7.86M
Investing Cash Flow-443.90K-443.90K-141.90K-38.63K-40.34K-76.01K
Financing Cash Flow26.92M26.92M16.00M2.71M-240.50K26.12M

Recce Pharmaceuticals Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.41
Price Trends
50DMA
0.45
Positive
100DMA
0.43
Positive
200DMA
0.38
Positive
Market Momentum
MACD
0.04
Negative
RSI
67.98
Neutral
STOCH
61.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCE, the sentiment is Positive. The current price of 0.41 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.45, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 61.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RCE.

Recce Pharmaceuticals Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
AU$90.43M-9.45-49.72%10.78%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
45
Neutral
AU$64.13M-27.39%26.64%
44
Neutral
AU$160.50M0.66%
41
Neutral
AU$97.88M-42.68%63.46%
41
Neutral
$104.06M-83.09%55.94%
40
Underperform
AU$106.68M-13.09-47.98%700.00%26.88%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RCE
Recce Pharmaceuticals Ltd.
0.58
0.09
18.37%
AU:ATX
Amplia Therapeutics
0.13
0.04
51.16%
AU:IMU
Imugene
0.32
-1.01
-75.87%
AU:ATH
Alterity Therapeutics
0.01
0.00
0.00%
AU:PTX
Prescient Therapeutics Limited
0.09
0.05
111.90%
AU:ALA
Arovella Therapeutics Limited
0.08
-0.08
-50.00%

Recce Pharmaceuticals Ltd. Corporate Events

Recce Pharmaceuticals Secures Hong Kong Patent for Anti-Infectives
Nov 27, 2025

Recce Pharmaceuticals Ltd. announced the granting of a patent in Hong Kong for its anti-infective products, RECCE® 327 and RECCE® 529, which are used to treat various infections. This patent strengthens Recce’s intellectual property portfolio in Asia, supporting its strategy to enter markets with significant medical and commercial potential, such as the ASEAN region, where it is also progressing with a Phase 3 clinical trial in Indonesia.

Recce Pharmaceuticals Reports Promising Preclinical Results for Inhaled RECCE® 327
Nov 26, 2025

Recce Pharmaceuticals Ltd. announced positive preclinical results for its synthetic anti-infective, RECCE® 327, in treating hospital-acquired pneumonia caused by multidrug-resistant Acinetobacter baumannii in mice models. The study demonstrated that nebulised R327 significantly reduced bacterial load in the lungs, outperforming traditional antibiotics like meropenem, which face solubility challenges. This advancement highlights R327’s potential as a critical treatment option in hospital settings, particularly for drug-resistant lung infections, and underscores its versatility and efficacy in direct lung delivery.

Recce Pharmaceuticals Mourns the Loss of Founder Dr. Graham JH Melrose
Nov 14, 2025

Recce Pharmaceuticals Ltd. announced the passing of its founder, Dr. Graham JH Melrose, a pioneer in polymer chemistry and infectious diseases. His leadership and vision were instrumental in establishing Recce as a notable player in the biotech industry, focusing on innovative solutions to antibiotic resistance. Dr. Melrose’s legacy continues to inspire the company’s mission and future innovations.

Recce Pharmaceuticals Ltd 2025 AGM Results Announced
Nov 5, 2025

Recce Pharmaceuticals Ltd held its 2025 Annual General Meeting, where all resolutions were decided by poll. Notably, the re-election of Dr. John Prendergast and Dr. Justin Ward as directors was carried, while resolutions related to the future issue of securities and ratification of prior share and warrant issues were not carried. The outcome of the meeting, including a ‘first strike’ against the remuneration report, may impact the company’s governance and future strategic decisions.

Recce Pharmaceuticals Outlines Future Strategies at 2025 AGM
Nov 4, 2025

Recce Pharmaceuticals Ltd presented at their Annual General Meeting in 2025, highlighting their strategic intentions and future plans. The presentation emphasized the company’s commitment to innovation in the pharmaceutical sector, particularly in combating antibiotic resistance. While the document outlines potential future strategies, it also acknowledges the inherent risks and uncertainties that could impact the company’s performance and operations.

Recce Pharmaceuticals Advances Phase 3 Trial for Diabetic Foot Infections in Indonesia
Oct 31, 2025

Recce Pharmaceuticals Ltd has commenced patient dosing in a Phase 3 clinical trial for diabetic foot infections in Indonesia, aiming to enroll up to 310 patients. This trial is significant due to Indonesia’s high diabetes prevalence and the urgent need for new treatment solutions. The company’s RECCE® 327 Topical Gel has shown high efficacy against antibiotic-resistant pathogens, highlighting its potential impact on the treatment of chronic wounds and positioning Recce as a key player in addressing global health challenges.

Recce Pharmaceuticals Announces Director’s Interest Change
Oct 14, 2025

Recce Pharmaceuticals Ltd announced a change in the director’s interest, specifically concerning James Graham, who has disposed of 745,962 Class B Performance Shares through a selective buy-back approved by shareholders. This change reflects a strategic adjustment in the company’s equity structure, potentially impacting its market positioning and shareholder value.

Recce Pharmaceuticals Announces Cessation of Securities
Oct 7, 2025

Recce Pharmaceuticals Ltd has announced the cessation of 8,754,423 performance shares due to a selective buy-back, effective October 7, 2025. This move may impact the company’s capital structure and could be part of a strategic effort to optimize shareholder value and streamline operations, signaling potential shifts in their market positioning.

Recce Pharmaceuticals Completes Selective Buy-Back of Performance Shares
Oct 7, 2025

Recce Pharmaceuticals Ltd has announced the final notification of its selective buy-back of performance shares, totaling 8,754,423 securities at a consideration of AUD 87.54. This strategic move is likely to impact the company’s financial structure and could influence its market positioning by potentially increasing shareholder value.

Recce Pharmaceuticals Updates Buy-Back Date
Oct 7, 2025

Recce Pharmaceuticals Ltd has announced an update regarding its selective buy-back of performance shares, identified by the ASX security code RCEAH. The update pertains to the date of the buy-back occurring, which has been changed from the initially notified date. This announcement could impact stakeholders by altering the timeline of the buy-back process, potentially affecting the company’s share structure and market perception.

Recce Pharmaceuticals Announces 2025 Annual General Meeting
Oct 3, 2025

Recce Pharmaceuticals Ltd announced the dispatch of documents related to its 2025 Annual General Meeting to shareholders. The company’s innovative anti-infective solutions, which have garnered significant recognition, position it as a key player in addressing global health challenges related to antibiotic resistance. The upcoming meeting is set to discuss these advancements and their implications for stakeholders.

Recce Pharmaceuticals Advances Phase 3 Trial for Diabetic Foot Infections in Indonesia
Sep 25, 2025

Recce Pharmaceuticals has commenced patient dosing in its Registrational Phase 3 clinical trial for diabetic foot infections (DFI) in Indonesia, with five clinical sites activated. This trial, one of the largest DFI studies globally, aims to assess the efficacy of RECCE 327 Topical Gel (R327G) and is expected to have interim results by Q1 2026. The trial is strategically significant given Indonesia’s high diabetes prevalence, representing a substantial market opportunity. Successful results could lead to accelerated approval and a potential commercial launch in 2026, positioning Recce as a key player in addressing diabetes-related infections.

Recce Pharmaceuticals Schedules 2025 Annual General Meeting
Sep 15, 2025

Recce Pharmaceuticals Ltd has announced its Annual General Meeting scheduled for November 5, 2025, with the closing date for director nominations set for September 23, 2025. This announcement underscores the company’s ongoing commitment to advancing its anti-infective pipeline, which has garnered significant attention from global health authorities for its potential to address critical health challenges posed by resistant pathogens.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Dec 02, 2025