Great summary of actions being undertaken by G7 countries around AMR. Some countries setting up push and/or pull incentives, such as the UK subscription model. And hopefully soon, the PASTEUR Act in the US.
Push incentives are defined as strategies associated with directly lowering the costs of developing a new antimicrobial drug candidate. Such as R&D rebates, grants etc.
Pull incentives:
Pull incentives reward companies based on the efficacy and potential applications of their antimicrobial drug, as opposed to sales volumes. This means there is no need for these companies to maximise sales while under patent. I.e. subscription contacts.
Novel antibiotics is becoming an exciting space for R&D biotech companies to be in. Despite successful new drugs being kept in reserve as last line treatments or medical emergencies, revenues generated could soon be in the realm of oncology and anti-inflammatory drugs, regardless of sales volumes.
I believe their is a chance that Recce could go it alone to reaching market approvals. My thoughts:
Recce currently has good cash reserves. They should continue to access non-dilutive funding such as R&D rebates in multiple jurisdictions and possible philanthropic/industry/government grants (push incentives) to fund the R&D pathway. For the topical 327 product, trial times should be relatively short, and with their US FDA fast-track designation we may see a topical product reach approval within a few years. If Recce were to secure subscription contracts (even one) for the topical 327, the immediate revenue would easily fund the R&D pipeline with cash leftover.
In saying that, I would understand a move to partner with big pharma and that is still a legitimate strategy.
RCE Price at posting:
94.5¢ Sentiment: Buy Disclosure: Held
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