The market may be dropping lower on Wednesday, but that hasn’t stopped the Recce Pharmaceuticals Ltd (ASX: RCE) share price from jumping higher.
In afternoon trade the pharmaceutical company’s shares are up almost 10% to $1.21.
This latest gain means the Recce share price is now up a massive 255% since the start of the year.
Why is the Recce share price jumping higher today?
Investors have been buying Recce shares on Wednesday after it announced an agreement with the Murdoch Children’s Research Institute (MCRI) to conduct pre-clinical studies. The MCRI is the largest child health research institute in Australia and one of the top three worldwide for research quality and impact.
According to the release, these studies will assess the potential of RECCE 435 (R435) for the treatment of Helicobacter pylori (H. pylori) infections.
Management notes that there is a global unmet medical need for the treatment of H. pylori with no first-line therapy curative in all patients. In fact, the most commonly used treatment is triple therapy.
This includes the use of a Protein Pump Inhibitor in combination with multiple antibiotics. However, due to the increasing prevalence of antibiotic resistant strains worldwide, the eradication rate of standard triple therapy has fallen below 80%.
The company’s Non-Executive Chairman, Dr. John Prendergast, commented: “Antibiotic-resistant forms of H. pylori are on the rise. This is worrisome because more than four billion worldwide are infected with H. pylori, which is the leading cause of peptic ulcers and stomach cancer.”
“We are excited to collaborate with Professor Sutton and MCRI in investigating the potential of our oral anbitiotic RECCE 435 as what could be the first non-combination treatment for H. pylori infection, including those caused by drug resistant forms of the pathogen,” he concluded.
Management expects to complete the trial in approximately 12 months, after which it will pursue a human clinical trial. It notes that it is well funded to support the study program following its recent successful capital raise.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- Why Corp Travel Management, EOS, Evolution, & Recce shares are charging higher
- Why the Recce Pharmaceuticals (ASX:RCE) share price crashed 15% lower today
- Why Kathmandu, New Hope, Recce, & Ramelius shares are dropping lower today
- These 4 ASX shares have grown more than 100% this year
- Turn $6k into $60k, a guide to growth investing
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Why the Recce Pharmaceuticals (ASX:RCE) share price is jumping 10% higher appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2Geo9Cb
Leave a Reply