Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) confirmed this week a second Cooperative Research and Development Agreement with the United States Army Institute of Surgical Research to evaluate RECCE® 327 Gel, a synthetic antibiotic, for treating infected burn wounds.
James Graham, managing director and CEO, stated the agreement is a significant advancement for the company’s defense research and marks its second CRADA with the US Army and third research program with the US Department of Defense. He emphasized that infected burn wounds represent a critical medical challenge for warfighters.
Interview highlights
- Recce Pharmaceuticals secured a second CRADA with the US Army.
- The USAISR will evaluate R327G for infected burn wounds.
- R327G is a synthetic antibiotic designed to overcome antibiotic resistance.
- The company is the sole clinical-stage synthetic antibiotic globally, according to the WHO.
- R327G maintains effectiveness with repeated use.
- The same formulation is undergoing Phase III trials for diabetic foot infections.
- Edison Research has assigned the company a valuation of $3 per share.
Welcome back. Today I’m joined by James Graham, managing director and CEO of Recce Pharmaceuticals, which is developing a new class of synthetic anti-infectives targeting antibiotic-resistant superbugs. James, welcome.
Good to be with you.
You’re collaborating with the US Army. This is the second or third agreement. Why is this important?
This is very significant, not only for Recce Pharmaceuticals but also for the frontline warfighter. This is our second CRADA with the US Army and our third research program with the US Department of Defense. We are testing against staphylococcal bacteria in a burn wound model, which addresses one of the greatest challenges in antibiotic resistance today.
Is anyone else pursuing a similar approach?
According to the World Health Organization, we are the only clinical-stage synthetic antibiotic in the world at this time. We are also the first new class of antibiotic in over 40 years.
What distinguishes your antibiotic?
It comes down to mechanism of action. Traditional antibiotics are naturally derived, and bacteria evolve to survive them. Our antibiotic is synthetic and continues to work with repeated use.
How did the US Army collaboration materialize?
It was a very comfortable relationship. Our burn wound program previously involved Professor Fiona Wood, and the results were very successful, which supported a seamless entry into the US program.
Are there applications beyond military use?
Yes. The same product is in Phase III trials for diabetic foot infections. This complements both military and civilian healthcare needs, including potential use within the Veterans Affairs system.
Edison recently valued the company at $3 per share. What’s your perspective on that?
When the WHO identifies antibiotic resistance as one of the greatest threats to human health, and recognizes our antibiotic as the only new class at this stage, those valuations are just the beginning.
