RECCE PHARMACEUTICALS LTD — Capital/Financing Update 2020

Dec 7, 2020

ASX Announcement

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Recce Awarded AusIndustry Advanced Overseas (R&D) Finding for Synthetic Anti-Viral Development Program

Sydney Australia, 8 December 2020: Recce Pharmaceuticals Ltd ( ASX: RCE ), the Company developing New Classes of Synthetic Anti-Infectives, is pleased to announce the award of an Advanced Overseas Finding for AU$9,637,500 of Synthetic Anti-Viral Research & Development (R&D) applicable expenditure by AusIndustry (a division of the Australian Government’s Department of Industry, Innovation and Science) - AU$26,787,500 across infectious disease portfolio.

The Advanced Overseas Finding is a pillar of the R&D Tax Incentive Program administered by the Australian Government. This Finding increases government support for the Company’s Infectious Disease Portfolio via 43.5% cash rebate on AU$9,637,500 of Anti-Viral R&D activity. This, in addition to the recently announced AU$17,150,000 Advanced Finding for Synthetic Antibiotic R&D activity, totals AU$26,787,500 over a period of three years (1 July 2019 to 30 June 2022).

Uniquely reserved for local R&D only, the Australian Government further agreed to extend the Company’s R&D rebates to include overseas Anti-Viral activites, with the Company recently announcing the grant of an Anti-Viral patent for Japan (exp 2037) and being on track for data within the calendar year from its United States in- vivo SARS-CoV-2 (COVID-19) program.

Non-Executive Chairman Dr. John Prendergast said, “We are thrilled to have AusIndustry’s financial support for our Anti-Viral R&D program as it takes an increasingly international role in the fight against the global health threat of emerging viral pathogens. We thank AusIndustry and the Department of Industry, Innovation and Science for continuing to play an important role in supporting science and its application to create novel anti-viral therapies.

This announcement has been approved for release by Recce Pharmaceuticals Board.

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About Recce Pharmaceuticals Ltd

Recce Pharmaceuticals Ltd (ASX: RCE) is pioneering the development and commercialisation of New Classes of Synthetic Anti-Infectives designed to address the urgent global health problems of antibiotic resistant superbugs and emerging viral pathogens.

Recce’s anti-infective pipeline is unique and comprised of broad-spectrum synthetic polymer antibiotics RECCE[®] 327 and RECCE[®] 435, and RECCE[®] 529 for viral infections with unique mechanisms of action against hyper-mutation on bacteria and viruses, respectively.

Patented lead candidate RECCE[®] 327 has been developed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria – including their superbug forms. Recce’s new antibiotic compound, RECCE[®] 435, has been formulated for oral use.

The FDA has awarded RECCE[®] 327 Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (GAIN) Act – labelling it for Fast Track Designation, plus 10 years of market exclusivity post approval.

Recce wholly owns its automated manufacturing, ready to support first-in-human clinical trials. Recce’s anti-infective pipeline seeks to exploit the unique capabilities of RECCE[®] technologies targeting synergistic, unmet medical needs.

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