Arecor Therapeutics LON:AREC has bolstered its balance sheet and sharpened its clinical focus after signing two US partnerships that it says will accelerate its diabetes drug pipeline and underpin its financial position into 2027.
The AIM-listed biopharmaceutical company, based in Cambridge, reported interim results showing a narrower half-year loss and reiterated its strategy to concentrate on advanced insulin products and an oral peptide delivery for obesity, while winding down non-core operations.
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For the six months to 30 June 2025, Arecor posted revenue of £2m, flat on the previous year, with lower research and development costs of £1.3m compared with £1.7m in the same period of 2024. The company recorded a £0.4m gain on the disposal of non-Ogluo products at its Tetris subsidiary, which is being closed by year end. The net loss after tax narrowed to £2.5m from £4.6m, though cash, equivalents and short-term investments declined to £1.9m from £2.5m a year earlier.
Chief executive Sarah Howell said the first half was marked by a decisive refocusing of resources. “Our strategic focus for 2025 onwards is two-fold: the development and commercialisation of AT278 in combination with next-generation automated insulin delivery systems, alongside the potentially high value field of oral peptide delivery, starting with GLP-1 in obesity,” she said. “Much has been achieved in refocusing the business to reflect this strategy, prioritising our development programmes, ceasing non-core operations and preserving cash.”
The company’s lead diabetes candidates, AT247 and AT278, are ultra-rapid and ultra-concentrated insulins designed for use in closed-loop pump systems. In vitro testing of both drugs with device partners produced encouraging results during the period. Shortly after the half year end, the US Food and Drug Administration provided positive feedback on the Phase 2 design for AT278, paving the way for pivotal trials.
Royalty financing agreement with Ligand Pharmaceuticals
To advance the programme, Arecor struck a co-development deal with Sequel Med Tech, a US insulin pump company, covering Phase 2 enabling activities for AT278. The collaboration, work on which has already begun, is intended to accelerate clinical readiness and position the product for commercialisation in combination with Sequel’s systems.
At the same time, Arecor signed a royalty financing agreement with US-listed Ligand Pharmaceuticals, which will provide up to $11m in funding, including an immediate $7m upfront. The deal involves the sale of royalty and technology access fee streams and is expected to co-fund trial-enabling development activities. Arecor said the agreement extends its cash runway into the first half of 2027.
Arecor Therapeutics expanding its footprint
The company is also seeking to expand its footprint in obesity treatments, one of the fastest-growing areas in global pharmaceuticals. Pre-clinical work on its oral GLP-1 receptor agonist candidate delivered positive in-vitro results, with further data expected later this year to inform the next stage of development. A new scientific advisory board has been formed to guide progress in oral drug delivery.
Howell said the second half of the year would be “a period of strength” as Arecor prepares AT278 for Phase 2 studies in 2026 and pushes ahead with its oral peptide platform. With new partnerships in place, the company aims to demonstrate its ability to convert scientific innovation into commercial opportunities despite a still limited cash base.
