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Pharma & Biotech

Arecor broker gives drug developer the thumbs up as it repeats its 'buy' call and price target

Panmure Liberum has maintained its 'buy' rating and punchy price target for shares in Arecor Therapeutics PLC (AIM:AREC) after it said it would be presenting data from a phase I trial of its fast-acting insulin AT278 at a leading industry conference.

The study involved overweight and obese individuals with Type 2 diabetes, showing that AT278 significantly accelerates insulin absorption compared to NovoRapid, a commonly used fast-uptake insulin.

The findings are consistent with previous results in people with Type 1 diabetes, confirming that AT278 retains its faster action profile, regardless of diabetes type or body mass index (BMI).

As a highly concentrated insulin (500 U/mL), AT278 offers a solution for patients with high daily insulin requirements, reducing injection volume while maintaining efficacy.

The rapid absorption profile of AT278 also makes it an important development for next-generation, miniaturised insulin pumps, which require more concentrated insulins to reduce size and increase wear time. No safety concerns were identified during the trial, highlighting a favourable safety profile.

"Although progression of AT278 is currently limited by the need for funding, this remains a very valuable programme, offering the potential for significant expansion in the use of insulin pumps, and we see it as a future driver of share performance," said Panmure Liberum in a note to clients.

"The high-profile presentation should encourage co-development or partnering interest."

Arecor shares were trading sideways mid-morning. Panmure-Liberum's price target is 371p.

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