Last week, Recce Pharmaceuticals Ltd [ASX:RCE] had a major win.
This tiny biocap stock divulged that it was going to be working with the CSIRO on tests. Analysing their anti-infectives in the fight against COVID-19.
Now though, one week on, Recce has even more good news to share. Because it isn’t just Australian scientists that are interested in their work anymore, US researchers are also keen…
A revelation that has seen the company’s stock spike 24% higher in trading today.
A global pandemic, calls for a global solution
Path BioAnalytics is the company behind the American interest. A North Carolina-based, private biotech company.
The plan, just like with the CSIRO, is to evaluate the effectiveness of Recce’s anti-infectives. Conducting a study within several ‘state-of-the-art Biosafety Level 3 containment laboratories.’
If all goes to plan, we should get some early data by September. A testament to the quick turnaround time, and urgency to in addressing this pandemic.
As Recce’s non-executive chairman, John Prendergast, notes:
‘The current pandemic underscores the need for more effective treatment approaches to prevent infectious diseases.
‘Over the past few months Recce has received a number of expressions of interest from several universities and research organisations to collaborate on the development of potential new therapies to address the unmet needs of patients with COVID-19.
‘We’re excited to be working with experts at Path BioAnalyutics to investigate the potential effectiveness of Recce’s compounds in treatment of SARS-CoV-2 infection using their advanced respiratory organoid model system.’
For Recce it is a huge endorsement of their potential.
One that may just help us find a way to deal with this daunting virus. Or perhaps, if we’re lucky, even provide a cure.
And for shareholders, it may even provide more incredible returns.
Trial and error
Just as I said last time though, this will likely be a lengthy process.
Even if the preliminary data comes back positive, it will take time to develop a treatment. Let alone get it to the point people can actually get their hands on it.
In time though, hopefully it will lead to a good outcome.
Which, like I said, could lead to some great gains for investors. It all depends on whether you’re willing to take a speculative punt or not.
However, Recce isn’t the only innovative stock in the market right now. There are plenty of other stocks with just as much potential, and stronger fundamentals. Companies which could provide some incredible returns in the coming months.
For Money Morning