4C Update (1/5/26)

A$1.7m cash at quarter end, with positive operating cash flow of $1.6m driven by receipt of the $5.5m R&D tax rebate flagged in the prior 4C. A further $3.5m rebate is expected in the coming weeks. Assuming operating and R&D spend remains in line with YTD levels, this should fund the next quarter. Beyond that, funding options include borrowing against future R&D rebates and/or a capital raise. Partnering to complete the Phase 3 trials also remains a realistic pathway and could provide a meaningful cash injection.

Quarter highlights (largely a rehash):

• Ongoing engagement with the US DoD via a CRADA with USAISR for R327G. The use of the gel in pre-packaged wound dressings is notable and suggests tacit validation of its medical utility in developing operational applications.
• Patient dosing is progressing across five clinical sites in Indonesia for the Phase 3 DFI trial. Interim data is still expected in the back half of CY26.
• Patent Family 4 granted in Brazil, extending protection to 2041 in what is a ~A$1.1bn anti-infectives market. Incrementally positive, but unlikely to move the dial for investors.

For now, it’s a waiting game pending interim data from Indonesia. I’d expect some form of funding update over the next quarter. As for Phase 3 FDA trials and potential pharma partnerships, updates may or may not materialise within that timeframe.

Disc: I own RL+SM

H1 FY26 (2/3/26)

H1 FY26 accounts for Recce were released after hours on Friday and like most biotechs at it’s current stage there is only one figure in it that matters and that was already released with the 4C at the end of January. As I noted at the time and is mentioned in the “Events Subsequent to Reporting Period” on p2 of the directors report for the accounts, the 31 December 2025 finishing cash position of A$365k needs to be viewed in context with the A$5.3m R&D tax rebated received on 14 January 2026.

Also Note 4: Going concern – is dependent on ability to secure additional funding, which it has done for a long time now and continues to expect to. Cash spending is mostly discretionary and the R&D rebates can be borrowed against, so I the solvency risk is low (as distinct from clinical risk) but we will probably see a capital raise at some point this year so they can accelerate development which is probably why the share price continues to go sideways despite clinical and commercial progress.

Disc: I own RL+SM

CRADA with USAISR (2/2/26)

Recce has announced an expansion of it’s work with the DoD (now Dept of War…), having previously received a US$2.2m grant (Announced 8Apr24 and further details on 15Jul24). The Cooperative Research and Development Agreement (CRADA) is with the United States Army Institute of Surgical Research (USAISR) and will see R327G validation testing using the USAISR’s Walker-Mason rat model of burn wound infections.

The direction seems to be to develop R327G into an amorphous gel wound dressing that would be available in military field kits and for use in clinical and post-operative care. Details are scant with no timelines and no funding is mentioned.

Given most of the work being done with the DoD/DoW is classified, we are unlikely to get much of a clue until cheques start being written. The work was discussed at the AGM, but in the context that they couldn’t provide any details, but provided a positive impression of both the effectiveness of R327G and the scope of the conditions it was being tested in.

A positive announcement that will likely help the price near term, also supportive of the investment thesis in that things seem to be on track.

Disc: I own RL+SM 

4C Q2 FY26 (30/1/26)

I feel like RCE needed to borrow from the cover of the Hitchhikers Guide to the Galaxy and have the words “Don’t Panic” in large, friendly letters at the start before investors raced to the cash balance (only $425k). The subsequent receipt of A$5.4m and another $3.5m expected later this quarter in R&D grants was buried on page 4 and tells investors more about the current cash position of the business than the 4C, and the reason not to panic.

The operational update for the quarter mostly repeated announcements I have already covered:

• Indonesia Phase 3 Dosing underway (25/9/25)
• Positive Efficacy Data of Inhaled RECCE® 327 in Hospital/Ventilator Acquired Pneumonia (HAP/VAP) in Mice Models (26/11/25)
• A$85m Advanced Overseas R&D Finding (16/12/25)

Also, the awarding of a Hong Kong patent for Recce Anti-infectives (to 2041) that I didn’t bother writing about and the sad passing of Dr Graham Melrose the inventor of the technology platform, vale Dr Melrose.

The funds available are being focused on the Phase 3 clinical trial in Indonesia for R327 Topical Gel (R327G) and U.S. Department of Defense Burn Wound Program. “With these initiatives advancing in parallel, Recce is actively pursuing regulatory, partnering, and potential market entry opportunities aimed at unlocking near‑term shareholder value.”

Which has been the plan for quite a while now, so no new information but it must be recognised that solid progress and milestones were reached last quarter. I wouldn’t hold your breath but it’s starting to look more like a case of when not if they commercialise or get a buyout offer.

Disc: I own RL+SM