Shares in Arecor Therapeutics PLC (AIM:AREC) rose in the wake of news it is teaming with US med-tech giant Medtronic to develop a new, high-concentration, thermostable insulin designed specifically for use in the latter's next-generation implantable insulin pumps.
Arecor believes there is the potential for 'significant advancements' in treatment for a group of diabetes patients who find limited benefits from conventional therapies.
And, by reducing the need for frequent pump maintenance, there is also the scope to simplify care and cut costs.
No financial details were provided in Thursday’s announcement. However, analysts at Panmure expect to pick up the tab for initial development.
“Should the product be taken forward to commercialisation we expect a further licensing agreement, including milestones and a downstream royalty as the product would include Arecor IP,” they added.
The investment bank’s number crunchers value stock in the specialty pharma group at 539p – a significant premium to the current price of 136.15p (up 1% on the day).