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Recce Pharmaceuticals Ltd. (AU:RCE)
ASX:RCE
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Recce Pharmaceuticals Ltd. (RCE) AI Stock Analysis

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AU:RCE

Recce Pharmaceuticals Ltd.

(Sydney:RCE)

Rating:55Neutral
Price Target:
AU$0.50
▲(31.58% Upside)
The overall score is heavily influenced by significant financial challenges, including negative equity and persistent losses, leading to a low financial performance score. However, positive technical indicators, such as bullish momentum and price trading above key moving averages, provide some support for the stock. The valuation is constrained by negative earnings, resulting in a mixed overall outlook.

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 Ltd. primarily generates revenue through the development and commercialization of its proprietary synthetic anti-infective compounds. The company aims to out-license its products or enter into strategic partnerships with larger pharmaceutical companies for further development, commercialization, and distribution. These partnerships may involve upfront payments, milestone payments, and royalties on product sales. Additionally, Recce may receive funding through government grants and incentives aimed at addressing antimicrobial resistance, as well as through private investments and public offerings.

Recce Pharmaceuticals Ltd. Financial Statement Overview

Summary
Recce Pharmaceuticals Ltd. faces significant financial challenges characterized by consistent losses, negative cash flows, and high leverage. The company has negative stockholders' equity and persistent negative margins. While financing inflows have supported cash reserves, operational inefficiencies and high debt levels present substantial risks.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue6.85M4.37M3.08M1.64M1.12M
Gross Profit-366.77K4.15M2.90M1.34M920.91K
EBITDA-21.35M-16.99M-10.80M-14.77M-5.13M
Net Income-17.66M-13.08M-10.99M-13.51M-4.32M
Balance Sheet
Total Assets6.37M2.56M12.62M21.68M3.24M
Cash, Cash Equivalents and Short-Term Investments4.42M1.56M11.58M20.87M2.68M
Total Debt811.19K250.57K74.76K126.95K83.23K
Total Liabilities15.89M5.14M2.56M1.18M931.53K
Stockholders Equity-9.52M-2.59M10.06M20.50M2.31M
Cash Flow
Free Cash Flow-13.15M-12.73M-9.05M-7.93M-3.81M
Operating Cash Flow-13.01M-12.69M-9.01M-7.86M-3.81M
Investing Cash Flow-141.90K-38.63K-40.34K-76.01K-5.94K
Financing Cash Flow16.00M2.71M-240.50K26.12M6.09M

Recce Pharmaceuticals Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.38
Price Trends
50DMA
0.34
Positive
100DMA
0.33
Positive
200DMA
0.39
Negative
Market Momentum
MACD
0.02
Positive
RSI
56.87
Neutral
STOCH
13.85
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 0.38 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.34, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.85 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
AU$108.44M
-33.01%
51
Neutral
$7.27B-0.06-62.84%2.34%15.16%-2.86%
$65.07M-41.60%
$49.89M-99.05%
$90.12M-154.88%
56
Neutral
AU$40.06M-36.95%11.11%
40
Underperform
AU$125.26M-85.35%315.11%51.16%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RCE
Recce Pharmaceuticals Ltd.
0.38
-0.11
-22.45%
INNMF
Amplia Therapeutics
0.12
0.02
20.00%
IUGNF
Imugene
0.18
-1.28
-87.67%
PRNAF
Alterity Therapeutics
0.01
0.00
0.00%
AU:PTX
Prescient Therapeutics Limited
0.04
0.00
0.00%
AU:ALA
Arovella Therapeutics Limited
0.10
-0.02
-16.67%

Recce Pharmaceuticals Ltd. Corporate Events

Recce Pharmaceuticals Advances Clinical Trials and Secures Strategic Partnerships
Jul 31, 2025

Recce Pharmaceuticals Ltd has reported significant progress in its clinical trials and strategic partnerships. The company has expanded its Phase 3 clinical trial sites in Indonesia and received additional approval for its Phase 2 trial, allowing more diabetic foot infection patients access to its R327G topical gel. This follows positive results in previous trials, indicating high efficacy. Additionally, Recce has entered into a Cooperative Research and Development Agreement with the US Army Medical Research Institute of Infectious Diseases, enhancing its research capabilities against biodefense pathogens. The company has also secured substantial funding through a capital raise and a non-dilutive financing agreement, strengthening its financial position.

Recce Pharmaceuticals Issues New Shares to Support Anti-Infective Development
Jul 14, 2025

Recce Pharmaceuticals Ltd announced the issuance of 811,062 fully paid ordinary shares without disclosure to investors under the Corporations Act. This move aligns with the company’s compliance with relevant legal provisions and does not involve any excluded information. The issuance of new shares is part of Recce’s ongoing efforts to support its operations and clinical trials, enhancing its position in the pharmaceutical industry focused on addressing unmet medical needs related to antibiotic resistance.

Recce Pharmaceuticals Announces Quotation of New Shares on ASX
Jul 14, 2025

Recce Pharmaceuticals Ltd has announced the application for quotation of 811,062 fully paid ordinary shares on the ASX. These shares were issued as part of compensation for services provided to the company, including legal, corporate advisory, investor relations, and stakeholder engagement support. This move is expected to enhance the company’s financial flexibility and strengthen its operational capabilities, potentially impacting its market position positively.

Recce Pharmaceuticals Announces Proposed Securities Issue to Strengthen Market Position
Jun 17, 2025

Recce Pharmaceuticals Ltd announced a proposed issue of securities, including warrants and ordinary shares, set to be issued by the end of 2025. This strategic move aims to bolster the company’s financial resources, potentially enhancing its market position and operational capabilities in the pharmaceutical sector.

Recce Pharmaceuticals Secures A$30 Million Debt Facility to Advance Clinical Trials
Jun 17, 2025

Recce Pharmaceuticals has secured a non-dilutive debt facility of up to A$30 million with Avenue Capital Group, providing initial funding of A$11.5 million to support Phase 3 clinical trials and commercialization efforts for its lead candidate R327G. This financial move, alongside a recent equity raise, strengthens Recce’s cash position, ensuring a cash runway sufficient for trial completion and market authorization submissions. The partnership with Avenue Capital Group underscores the commercial potential of Recce’s synthetic anti-infectives and their role in addressing antimicrobial resistance, marking a significant step in the company’s growth and strategic objectives.

FIL Limited Increases Stake in Recce Pharmaceuticals
Jun 12, 2025

FIL Limited has increased its stake in Recce Pharmaceuticals Ltd., raising its voting power from 6.40% to 8.57% by acquiring an additional 7,950,744 common shares. This change in substantial holding reflects a growing confidence in Recce Pharmaceuticals’ strategic direction and potential, potentially impacting the company’s market positioning and stakeholder interests positively.

Recce Pharmaceuticals Announces Change in Substantial Shareholding
Jun 11, 2025

Recce Pharmaceuticals Ltd. has announced a change in the substantial holding of its shares, with Gavin William Brown increasing his voting power from 7.16% to 12.39% through the acquisition of shortfall shares from the company’s recent entitlement offer. This change in shareholding could potentially impact the company’s governance and strategic decisions, reflecting increased investor confidence in Recce Pharmaceuticals’ market positioning and future prospects.

Recce Pharmaceuticals Strengthens Financial Position with Share Issue and Loan Negotiations
Jun 10, 2025

Recce Pharmaceuticals Ltd announced the issuance of 26,370,567 fully paid ordinary shares, raising A$7.4 million through a pro-rata non-renounceable entitlement offer. The company is also negotiating a secured loan facility with a US-based investment firm for up to USD $20 million to refinance existing debt and provide working capital. This financial maneuvering reflects Recce’s strategic efforts to strengthen its financial position and support its ongoing development of innovative anti-infective solutions, potentially impacting its market positioning and stakeholder interests.

Recce Pharmaceuticals Expands Market Reach with New ASX Securities Quotation
Jun 10, 2025

Recce Pharmaceuticals Ltd has announced the application for the quotation of 26,370,567 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of June 10, 2025. This move is part of previously announced transactions and is expected to enhance the company’s market presence, potentially increasing its visibility and accessibility to investors, thereby supporting its strategic growth initiatives in the pharmaceutical sector.

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.

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: Jul 30, 2025