Recce Pharmaceuticals Receives AUD $11.17 Million Research and Development (R&D) Advance

SYDNEY, Australia, March 12, 2024 (GLOBE NEWSWIRE) -- Recce Pharmaceuticals Ltd (ASX: RCE, FSE: R9Q), (the Company), the Company developing a new class of synthetic anti-infectives, today announced it received AUD $11,178,965 as a research and development (R&D) advance with Endpoints Capital, capturing Recce’s R&D tax incentive for the 2023/2024 fiscal year (FY23/24) and 2025 fiscal year (FY25).

Recce received $11.17 million in non-dilutive cash, reflecting R&D rebate credits for FY23/24, in addition to future anticipated R&D applicable expenditure for FY25. This enables the Company to leverage its R&D expenditure benefits of the past, present, and future R&D applicable expenditure on a here-today basis, as achieved by this agreement.

“Securing this advanced funding from Endpoints is a testament to the strength of Recce’s scientific platform and the potential of our pipeline,” said James Graham, Chief Executive Officer of Recce Pharmaceuticals. “This non-dilutive funding not only extends our financial runway but facilitates the acceleration of our multiple clinical programs. We thank Endpoints for having confidence in our vision and look forward to leveraging this partnership to drive meaningful progress in the fight against antimicrobial resistance.”

The Company recently announced it received an Advanced Overseas finding of AUD $54.9 million awarded by the Australian Government, underscoring the advance funds from Endpoints and extending the 43.5% R&D rebate from Australia to cover those undertaken by Recce anywhere in the world for a period of three years (July 1, 2022 to June 30, 2025).

The 15% per annum interest rate is market-leading, payable through offset against R&D refunds, and secured against accrued R&D credits only. Any surplus to R&D rebates, including around an imminent R&D rebate to FY23, is always that of Recce’s.

Andrew Stewart, Chief Executive Officer of Endpoints Capital, added, “We are delighted to be working with Recce Pharmaceuticals and the critical work they are doing advancing this new class of synthetic anti-infectives to address unmet medical needs where no cure exists for antibiotic-resistant superbugs. In a vast landscape of biotech innovators, we are pleased to be collaborating with Recce Pharmaceuticals as they pave the way in advancing their infectious disease portfolio to their next primary efficacy endpoint.”