Recce Pharmaceuticals Secures A$85M R&D Tax Incentive Boost for Global Antibiotic Fight
Recce Pharmaceuticals has won a significant Australian Government R&D tax incentive, unlocking up to A$85 million for its synthetic anti-infective programs worldwide, including a pivotal Phase 3 clinical trial.
- A$85 million Advanced Overseas Finding awarded for R&D expenditure
- 43.5% R&D tax rebate extended to overseas activities for three years
- Supports Phase 3 Diabetic Foot Infection clinical trial in Indonesia
- Validates Recce’s global synthetic anti-infective development strategy
- Recognition of Recce’s role in combating antibiotic-resistant superbugs
Government Endorsement of Global R&D Efforts
Recce Pharmaceuticals Limited, a frontrunner in synthetic anti-infective development, has received a substantial boost from the Australian Government with an Advanced Overseas Finding worth up to A$85 million. This finding confirms that Recce’s research and development activities conducted outside Australia qualify for the government’s 43.5% R&D Tax Incentive rebate over the next three years.
Unlike a direct grant, this finding is a binding confirmation of eligibility for tax rebates on eligible R&D expenditure, effectively extending financial support to Recce’s international projects. This includes its critical Phase 3 clinical trial for Diabetic Foot Infection (DFI) currently underway in Indonesia, as well as other overseas infectious disease research programs.
Strategic Implications for Recce’s Pipeline
The award underscores the Australian Government’s recognition of Recce’s innovative approach to tackling antibiotic resistance, a pressing global health challenge. Recce’s pipeline features three patented synthetic polymer anti-infectives, R327, R435, and R529, targeting bacterial and viral infections, including drug-resistant superbugs.
These compounds have garnered international attention, with the World Health Organization listing them as priority antibacterial products in clinical development. The US FDA has also granted R327 a Qualified Infectious Disease Product designation, highlighting its potential impact.
Financial and Market Perspectives
By confirming eligibility for the R&D tax incentive on overseas activities, Recce can leverage a significant cash rebate that enhances its financial runway and supports accelerated development timelines. This financial endorsement may improve investor confidence and provide a competitive edge in the race to develop next-generation antibiotics.
CEO James Graham emphasized the importance of this milestone, noting it as one of the largest Advanced Overseas Findings in Australian history and a testament to the global relevance of Recce’s work.
Looking Ahead
As Recce advances its clinical programs, particularly the Phase 3 trial in Indonesia, this tax incentive will be a critical enabler. The company’s ability to sustain and expand its R&D efforts internationally could accelerate the arrival of new treatments addressing antibiotic resistance worldwide.
Bottom Line?
Recce’s expanded R&D rebate signals strong government backing, setting the stage for accelerated global anti-infective innovation.
Questions in the middle?
- How will Recce allocate the A$85 million in eligible R&D expenditure across its programs?
- What milestones are expected next in the Phase 3 Diabetic Foot Infection trial in Indonesia?
- Could this tax incentive influence partnerships or funding strategies for Recce’s pipeline?
