The Recce share price is flying today on news the company has had encouraging results in its COVID-19 drug trials. Let’s take a look.
The post Why is the Recce (ASX:RCE) share price soaring 14%? appeared first on Motley Fool Australia. –
The Recce Pharmaceuticals Ltd (ASX: RCE) share price has been soaring up today. Recce shares jumped up more than 14% on news that the company has seen encouraging results in the treatment against the COVID-19 virus. The release comes on the same day that Pfizer Inc (NYSE: PFE) announced its vaccine success.
The Recce share price has risen 14.21% at the time of writing, vaulting its shares to $1.08.
What does Recce do?
Recce is involved in drug discovery and development business. It aims to commercialise a new class of synthetic antibiotics that target a wide range of diseases to address the global health challenge of antibiotic-resistant superbugs.
The group operates solely in research and development, and is located in both Australia and the United States.
COVID-19 trial success
Today the Recce share price is flying on the news that it saw encouraging results of its primary drug, Recce 327 against COVID-19. R327, a synthetic anti-infective drug, showed encouraging efficacy in an in-vitro screening assay against the virus.
FDA-approved R327 has traditionally been developed for the treatment of blood infections and sepsis. Infections that are derived from E. coli and S. aureus bacteria. However, earlier this year it was announced that the drug may also be effective against COVID-19.
As the drug showed encouraging inhibition against the virus it is now advancing to Stage 1b. This stage will be under way in near weeks.
Whilst the company is delighted by the results, it notes that preliminary and further testing must be completed before the drug can be announced as fully effective.
Recce non-executive chair John Prendergast was pleased, saying:
We’re highly encouraged by the results from this study, which indicate anti-viral activity of R327 and, in particular, highlight the potential potency of our lead candidate against SARS-CoV-2 . We are interested in seeing the next stage and look forward to continuing research on the effectiveness of R327 with the team at the Doherty Institute.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.