Arecor Therapeutics PLC (AIM:AREC) has struck a deal with an unnamed clinical-stage biopharmaceutical company to develop a new formulation of a peptide therapy.
The partner company will fund Arecor’s development work and has the option to license the rights to the improved formulation if it meets expectations.
Arecor specialises in reformulating existing drugs to make them more effective or easier to administer, using its proprietary Arestat technology.
This collaboration highlights its growing expertise in peptide-based treatments, a fast-growing area of medicine that targets specific receptors in the body to treat conditions such as diabetes and metabolic disorders.
Peptide therapeutics are becoming increasingly important in the pharmaceutical industry, with the global market expected to surpass $100 billion by 2034.
"Arecor has significant expertise in developing novel formulations of therapeutic peptides to address unmet patient needs in this large and growing market. This collaboration further validates our leadership in this field," said CEO Sarah Howell.
The company is also working on oral versions of peptide therapies, including a glucagon-like peptide-1 (GLP-1) receptor agonist, which could offer an alternative to injectable treatments.