How Recce’s $15.8M Raise Fuels Phase 3 Trial Expansion in Indonesia

Clinical Trial Progress and Regulatory Milestones

Recce Pharmaceuticals has made significant strides in its clinical development program during the June quarter of 2025. The company successfully onboarded additional clinical trial sites across Indonesia, expanding its registrational Phase 3 trial for diabetic foot infections. This expansion follows productive meetings with Indonesia’s Food and Drug Authority, underscoring Recce’s commitment to accelerating patient recruitment and advancing toward regulatory approval.

Meanwhile, the Phase 2 clinical trial for Recce’s RECCE 327 Topical Gel (R327G) received further Human Research Ethics Committee approval, allowing more patients with diabetic foot ulcer infections to access the treatment. This decision reflects encouraging earlier Phase 2 results, where over 86% of patients showed clinical improvement after just one week of treatment, with outcomes improving further by day 14.

Strategic Partnerships and Intellectual Property Expansion

Recce also announced a new Cooperative Research and Development Agreement with the United States Army Medical Research Institute of Infectious Diseases (USAMRIID), a premier biodefense research institution. This partnership, supported by the Defense Threat Reduction Agency, will test Recce’s synthetic anti-infective compounds against high-risk pathogens, potentially opening doors to biodefense applications and further validating the company’s technology platform.

On the intellectual property front, Recce secured patent acceptance in China for its anti-infective compounds, extending its global patent family alongside existing protections in Australia, Canada, Japan, and Israel. This broad patent coverage strengthens Recce’s competitive position in key international markets.

Financial Position and Capital Raising

Financially, Recce closed the quarter with a cash balance of A$10.53 million. The company completed a A$15.8 million capital raise exclusively from existing shareholders, earmarked to fund ongoing Phase 3 trials in Indonesia and Australia, regulatory submissions, and general working capital. Complementing this equity raise, Recce secured a non-dilutive debt facility of up to approximately A$30 million from Avenue Capital Group, with A$11.49 million already drawn down. This facility provides additional financial flexibility to support clinical development and commercialisation efforts, particularly across the ASEAN region.

Adding to its cash runway, Recce received a Canadian Scientific Research and Experimental Development rebate of approximately A$272,000, with an Australian R&D rebate expected later in the year. Together, these funding sources provide an effective cash runway of nearly A$40 million, supporting the company’s near-term milestones.

Looking Ahead

With robust funding and strategic partnerships in place, Recce is well-positioned to advance its clinical programs and move closer to commercialisation. The expanded Phase 3 trials in Indonesia and Australia are critical catalysts expected to drive revenue generation in 2026. Meanwhile, the USAMRIID collaboration could unlock new applications for Recce’s synthetic anti-infectives in biodefense, adding a valuable dimension to the company’s growth prospects.