Arecor Therapeutics PLC (AIM:AREC) has raised £6.26 million from the placing of and subscription for shares at 90p each.
The new funds will be used to develop its pipeline as well as support the commercial roll-out of its main product, Ogluo, a treatment for severe diabetes.
Specifically, £2.7 million will be ploughed into product sales through the investment in inventory and in awareness and marketing campaigns in the UK and Germany with the aim of being cash flow positive in 2026.
A further £2.7 million will be used in research and development delivering enhanced injectables and a data package for an oral GLP-1 drug that it wants to convert into a "value-driving" partnership.
GLP-1, or glucagon-like peptide 1 drugs are diabetes treatments that are now used as weight-loss treatments. While they promise a revolution in the fight against obesity, GLP-1s have a downside - they require weekly or daily injections.