• Recce signs non-binding term sheet with Middle Eastern pharmaceutical company
• 10-year exclusive agreement expected with milestone payments up to USD 3.5M
• Recce to receive 30% of net selling price plus a 6% royalty on net sales exceeding USD$50m/year
• Agreement targets completion next quarter

Recce Pharmaceuticals Limited has signed a non-binding term sheet with a leading Middle Eastern pharmaceutical company for a 10-year exclusive multi-country licensing agreement. The agreement covers the commercial sales and distribution of Recce's R327G Topical Gel for the treatment of Diabetic Foot Infections (DFIs) across the Middle East and North Africa (MENA) region. The term sheet outlines the key commercial terms for the proposed agreement, which includes an upfront signing fee and milestone payments totaling up to USD 3.5M. Recce will receive 30% of the net selling price plus an additional 6% annual royalty on net sales exceeding USD$50m/year. The Licensee, with a strong sales portfolio and established market access, is well positioned to accelerate the adoption and distribution of R327G across key MENA markets.

Recce expects milestone payments up to USD 3.5M from the licensing agreement.

The parties are actively working to finalize the definitive licensing agreement, with the anticipation of completing next quarter.