Recce Pharmaceuticals Ltd. (RCE) AI Stock Analysis

• Market Cap: AU$190.86M
• Dividend Yield: N/A
• Average Volume (3M): 154.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: 0.66%
• Country: US
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 289,183,400
• 10 Day Avg. Volume: 112,630
• 30 Day Avg. Volume: 154,688
• PEG Ratio: 0.34
• Price to Book (P/B): -22.52
• Price to Sales (P/S): 9.15
• P/FCF Ratio: -3.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.71 ▲(73.66% Upside)

The score is held back primarily by weak financial performance (declining revenue, very large losses, and balance-sheet risk from negative equity). Technicals are supportive in the near term (strong uptrend with positive MACD), but overbought signals increase volatility risk. Valuation is also a headwind because earnings are negative and there is no dividend yield provided.

Positive Factors

Addresses global antibiotic resistance and sepsis

Recce's focus on treatments for antibiotic-resistant infections and sepsis aligns with a durable, growing global health need. Successful clinical progress would target a persistent large-market unmet need, supporting long-term commercial opportunity and strategic relevance regardless of short-term cycles.

Novel synthetic polymer platform

A differentiated synthetic polymer platform can provide a structural competitive advantage versus traditional small molecules, enabling potential broad-spectrum activity and a pipeline approach. Platform-based IP and modality breadth support licensing, partnerships, and multi-indication development over years.

Strong free cash flow growth

Material FCF growth implies improving cash generation efficiency and better capital management, which can extend the runway for clinical programs. Over a multi-month horizon this reduces near-term financing pressure and increases optionality for partnerships or staged development funding.

Negative Factors

Declining revenue and deeply negative margins

Sustained revenue decline and extreme negative margins reflect heavy clinical and development spending without commercial revenue. This persistent loss structure increases dependence on external capital and elevates execution risk for advancing late-stage programs to commercialization.

Negative equity and high leverage

Negative equity signals liabilities exceed assets, constraining financial flexibility. High leverage raises refinancing and covenant risk, making the company more vulnerable to funding stress and potentially forcing dilutive equity raises or costly debt, which can hamper long-term strategy execution.

Operating cash flow insufficient to cover losses

Reliance on non-operational cash sources while operating cash flow lags net losses is a structural funding weakness. For a clinical-stage biotech this implies ongoing funding needs, increasing probability of dilution or program delays if capital markets or partners become less available over the medium term.

Recce Pharmaceuticals Ltd. Business Overview & Revenue Model

Company Description

Recce Pharmaceuticals Ltd. (RCE) is a biotechnology company focused on the development and commercialization of innovative anti-infective therapies. The company specializes in creating synthetic polymers to combat serious infections, particularly those caused by antibiotic-resistant bacteria. Recce's lead product candidate, RECCE 327, is designed to treat a range of infections, including sepsis, and is positioned to address the growing global health challenge of antibiotic resistance.

How the Company Makes Money

Recce 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

Overall financial health is weak: revenue declined 21.73% and profitability is deeply negative (net margin -285.37%, EBIT margin -271.76%). Balance sheet risk is elevated with negative equity (debt-to-equity -3.53). A partial offset is strong free cash flow growth (+51.97%), but operating cash flow is still not supporting net losses.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.51M	7.51M	5.03M	4.37M	3.08M	1.64M
Gross Profit	-2.94M	-2.94M	-2.19M	4.15M	2.90M	1.34M
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 Assets	12.41M	12.41M	6.37M	2.56M	12.62M	21.68M
Cash, Cash Equivalents and Short-Term Investments	10.45M	10.45M	4.42M	1.56M	11.58M	20.87M
Total Debt	10.77M	10.77M	811.19K	250.57K	74.76K	126.95K
Total Liabilities	15.47M	15.47M	15.89M	5.14M	2.56M	1.18M
Stockholders Equity	-3.05M	-3.05M	-9.52M	-2.59M	10.06M	20.50M
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 Flow	26.92M	26.92M	16.00M	2.71M	-240.50K	26.12M

Recce Pharmaceuticals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.66, below the 50-day MA of 0.58, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 8.09 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCE	52 Neutral	AU$190.86M	-7.27	―	―	―	0.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PTX	50 Neutral	AU$88.33M	-8.79	-49.72%	―	―	10.78%
IMU	47 Neutral	AU$113.52M	-1.09	-83.09%	―	―	55.94%
ALA	44 Neutral	AU$106.91M	-12.50	-47.98%	―	700.00%	26.88%
ATX	43 Neutral	AU$66.70M	-6.97	-27.39%	―	―	26.64%
ATH	41 Neutral	AU$87.00M	-5.26	-42.68%	―	―	63.46%

Recce Pharmaceuticals Ltd. Corporate Events

Recce Pharmaceuticals Secures $5.3m R&D Rebate to Bolster Anti-Infective Pipeline

Recce Pharmaceuticals has received an AUD $5.34 million cash refund under Australia’s 43.5% Research & Development Tax Incentive for eligible R&D activities undertaken in the 2025 financial year, providing non-dilutive funding to support its clinical and development programs. The company has also submitted a further claim and anticipates an additional refund of about AUD $3 million, which management says will help finance its Phase 3 clinical trial in Indonesia and other domestic studies, reinforcing its financial runway and capacity to advance its synthetic anti-infective portfolio in the highly competitive anti-infectives market.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.56 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Secures A$85 Million R&D Tax Incentive for Global Anti-Infective Programs

Recce Pharmaceuticals has been awarded an Advanced Overseas Finding for up to A$85 million by the Australian Government, which extends the 43.5% R&D Tax Incentive to the company’s overseas R&D activities for three years. This decision supports Recce’s global anti-infective programs, including a Phase 3 clinical trial for Diabetic Foot Infection in Indonesia, and highlights the company’s efforts in addressing antibiotic resistance.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.52 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Secures Hong Kong Patent for Anti-Infectives

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.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Reports Promising Preclinical Results for Inhaled RECCE® 327

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.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Mourns the Loss of Founder Dr. Graham JH Melrose

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.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Ltd 2025 AGM Results Announced

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.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Outlines Future Strategies at 2025 AGM

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.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.

Recce Pharmaceuticals Advances Phase 3 Trial for Diabetic Foot Infections in Indonesia

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.

The most recent analyst rating on (AU:RCE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Recce Pharmaceuticals Ltd. stock, see the AU:RCE Stock Forecast page.