Why the Recce Pharmaceuticals (ASX:REE) share price is storming higher today

The Recce Pharmaceuticals Ltd (ASX:RCE) share price is on the move on Tuesday following the release of an update on R327…

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The Recce Pharmaceuticals Ltd (ASX: RCE) share price has been a positive performer on Tuesday.

In morning trade, the pharmaceutical company's shares are up 3.5% to $1.17.

This latest gain means the Recce Pharmaceuticals share price has now almost tripled in value over the last 12 months.

A drawing of a rocket follows a chart up, indicating share price lift

Image source: Getty Images

Why is the Recce Pharmaceuticals share price storming higher?

Investors have been buying Recce Pharmaceuticals shares this morning following the release of an update on its Recce 327 (R327) product.

According to the release, R327 has demonstrated bactericidal activity against all six antibiotic resistant ESKAPE pathogens. This includes drug resistant mutations (superbugs), as well as two additional World Health Organisation (WHO) priority pathogens list. The study was conducted by an independent Contract Research Organisation.

Management advised that the bactericidal activity of R327 demonstrated a three-log or 99.9% reduction in the number of colony forming units (CFUs) over 24 hours against all six strains at various concentrations and times.

What are ESKAPE pathogens?

These antibiotic resistant bacteria have been named 'ESKAPE' due to their propensity of escaping the biocidal action of antibiotics. They are collectively responsible for over 720,000 hospital acquired infections in the United States alone each year.

The ESKAPE pathogens include both Gram-positive and Gram-negative bacteria; Enterococcus faecium, Staphylococcus aureus, Klebsiella pneumoniae, Acinetobacter baumannii, Pseudomonas aeruginosa, and Enterobacter species.

The release explains that ESKAPE pathogens are also responsible for 42.2% of blood infections, around 50 million infections each year, resulting in one in five deaths in the community or one in three deaths in hospitals and are associated with higher lengths of stay, cost of care, and mortality compared with non-ESKAPE pathogens.

In light of this, there is a large market opportunity for a successful anti-infective product.

Recce Pharmaceuticals' CEO, James Graham, said: "We are encouraged by the data from this study and will continue to explore the potential of RECCE 327 to treat hospital-acquired infections. Antimicrobial resistance is one of the most urgent threats to global public health with the suite of ESKAPE pathogens posing a significant threat due to their virulence and rapid development of drug resistance."

"Additionally, with R327 effective against two more priority pathogens listed by the WHO, we believe reinforces the potential of R327 to treat some of the greatest threats to human health," he concluded.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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