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Pharma & Biotech

Arecor CEO flags compelling potential as it looks to replenish coffers

Arecor Therapeutics PLC (AIM:AREC) chief executive Sarah Howell described the business's growth potential as "compelling", highlighting "numerous revenue and significant partnership opportunities".

Her comments accompanied a trading and funding update which flagged the accelerated requirement for new investment in a business that is making breakthroughs in insulin delivery.

It is looking to replenish the coffers in the third quarter, around three months earlier than previously anticipated. Arecor cited increased costs and the 'timing' in potential pipeline revenue as the reason for the change in forecast.

"We are focused on addressing the funding requirements for the business to deliver this growth and to capture the value of our platform and insulin assets," Howell told investors.

Despite these financial challenges, Arecor expects its 2024 revenue to align with market expectations. This projection hinges on the success of new licensing deals, increased sales from Tetris Pharma, and royalties from AT220. However, these revenue sources remain uncertain and largely beyond the company's control.

Arecor also highlighted the promising results of its phase I clinical trial for ultra-concentrated, ultra-rapid-acting insulin, AT278. The company is now considering an insulin pump study to further showcase AT278's potential. This study aims to generate sufficient data to attract potential licensing partners and support the development of next-generation miniaturized, longer-wear insulin pumps.

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