Shares in Arecor Therapeutics PLC (AIM:AREC) remain "significantly undervalued", according to one broker that closely follows the diabetes drug specialist.
Panmure Gordon's comments followed the group's prelims on Thursday which recounted the significant progress made in 2023, but also confirmed the phase I read-out for AT278 is expected at some point in the first half.
In her comments yesterday alongside the results, CEO Sarah Howell labelled the concentrated, rapid-acting insulin candidate for Type-2 diabetes as potentially disruptive.
This is because it would provide the "critical enabler" in the development of miniaturised and longer-wear insulin delivery systems.
Panmure in its latest note, would seem to agree with Howell: "This the most advanced (and possibly only) ultra-rapid, ultra-concentrated insulin in development.
"Ahead of the data, we reviewed the insulin pump market, worth circa $5.5bn growing with a compound annual growth rate of 16%, and demonstrating rapid technological developments including smaller pumps, longer wear time, automated control systems and starting to address the T2D [Type-2 diabetes] market.
"Each of these could be more effectively enabled with a higher concentration ultra-rapid insulin."
While Panmure pegged back its valuation for shares in Arecore to 481p from 539p, the former figure still represents a 250% premium to the current price of 135p (up 3%).
"Arecor remains significantly undervalued in our view, however, more cautious timelines on some programmes result in a reduction in our target price," said Panmure.