Recce Pharmaceuticals has received a $5.3 million R&D tax rebate from the Australian Taxation Office, providing a significant cash injection to support its innovative synthetic anti-infective drug development programs.
- AUD $5.3 million R&D tax rebate received for FY2025
- Additional $3 million rebate pending Australian Taxation Office approval
- Funds to support Phase 3 clinical trial in Indonesia and domestic programs
- Rebate reflects 43.5% of eligible R&D activities conducted locally and overseas
- Non-dilutive funding strengthens Recce’s anti-infective pipeline development
Significant Government Support for Innovation
Recce Pharmaceuticals Ltd (ASX – RCE) has announced a cash refund of AUD $5.3 million from the Australian Government’s Research and Development (R&D) Tax Incentive program for the financial year ending 30 June 2025. This rebate reflects 43.5% of the company’s eligible R&D expenditure, both within Australia and internationally, underscoring the government’s commitment to fostering innovation in the pharmaceutical sector.
Funding the Fight Against Superbugs
The rebate will directly support Recce’s ongoing research into synthetic anti-infectives, a new class of drugs designed to combat antibiotic-resistant bacteria and viruses. Notably, the funds will contribute to the company’s Phase 3 clinical trial currently underway in Indonesia, as well as other domestic clinical programs. These initiatives are critical as antibiotic resistance remains a pressing global health challenge.
Additional Rebate Expected
Recce has also lodged a further R&D Tax Incentive claim for additional eligible activities, with an expected cash refund of approximately AUD $3 million pending approval by the Australian Taxation Office. If granted, this will complete the company’s FY25 R&D rebate, providing further non-dilutive capital to advance its drug development pipeline without diluting shareholder equity.
Strategic Implications for Recce
CEO James Graham highlighted the importance of this financial support, stating that the rebate bolsters confidence in the company’s objectives and accelerates the progression of its synthetic anti-infective portfolio. Recce’s innovative approach has already gained recognition from global health authorities, including the World Health Organization and the US FDA, positioning the company as a promising player in the fight against antimicrobial resistance.
Looking Ahead
With an automated manufacturing facility supporting current clinical trials and a pipeline that includes intravenous, oral, and antiviral candidates, Recce is well-placed to leverage this government-backed funding. The R&D rebate not only eases financial pressures but also signals strong institutional support for cutting-edge pharmaceutical innovation in Australia.
Bottom Line?
Recce’s substantial R&D rebate strengthens its financial footing as it advances critical anti-infective therapies amid growing global health challenges.
Questions in the middle?
- Will the additional $3 million rebate be approved without delay?
- How will this funding impact timelines for Recce’s Phase 3 clinical trial outcomes?
- What are the next regulatory milestones for Recce’s synthetic anti-infective candidates?