Recce Pharmaceuticals Shares Up on Possible COVID-19 Treatment

We’ve reached a point where it’s almost certain that herd immunity won’t beat the ‘rona.

COVID-19 is showing no signs of slowing down in nations that opted for this strategy. With Sweden one of the prime examples of this outcome.

To date, they have one of the highest mortality rates per capita from the pandemic. Not exactly the kind of recognition you want.

Suffice to say, both Sweden and the rest of the world need a cure.

That’s where biotech companies like Recce Pharmaceuticals Ltd [ASX:RCE] come in. A small-cap that is trading 50% higher today after it was selected to see if it could help fight the coronavirus.

Hunt for a solution

Yesterday afternoon, after the market close, Recce made a big announcement.

The company is set to begin working with the CSIRO and Doherty Institute. Putting their synthetic anti-infectives to the ultimate test: a SARS-CoV-2 (coronavirus) screening program.

In other words, they will take part in a coordinated effort to find a treatment for COVID-19. One of a handful of promising treatments that may help us find a way to beat this deadly virus.

Naturally, it is a huge win and honour for Recce. With their non-executive Chairman Dr John Prendergast commenting:

We are very pleased to have been selected by the CSIRO, one of the largest and most diverse scientific research organisations in the world, to investigate the efficacy of two of our promising compounds against SARS-CoV-2.

The compounds’ unique, universal mechanisms of action indicate potential to attack a broad range of viruses and as well, overcome the threat of viruses’ typical hyper-mutation into new and deadly pathogens.

And it is this late point, on mutations, that Recce will be well aware of. Their entire objective to date has been in identifying anti-viral solutions that aren’t vulnerable to antimicrobial resistance. The phenomenon that has limited the viability of so many other drugs both past and present.

For now though, the goal is simply to find any kind of solution. A goal that Recce may play some part in; only time will tell.

A long way to go

As is always the case for any drug, this won’t be a quick affair.

Even with fast-tracked research, the screening process will take time. Ensuring that no stone is left unturned in the pursuit of a workable treatment.

Recce hasn’t even provided a timeline for the next stages, let alone the entire roadmap. All we know is that they will update the market as the screening process progresses. That is, if their two candidates continue to show potential.

It is by no means a guaranteed win, but it certainly provides hope.

And for shareholders, it could be the beginning of some much larger returns.

However, biotech isn’t the only promising sector for small-caps at the moment. There are a range of incredible companies that are looking likely to boom in the coming months. Many of which could offer some amazing returns.

For four of our favourite picks, check out our high-value small caps report, right here.

Because in this market, finding tiny companies with big potential may be the best remedy when it comes to your financial health.


Ryan Clarkson-Ledward,
For Money Morning


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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