Panmure Liberum has reiterated its 'buy' recommendation on Arecor Therapeutics PLC (AIM:AREC), setting a price target of 324p, and hailing its latest research, which is targeting a huge potential market.
The AIM-listed firm is making strides in the therapeutic peptides, an area of medicine expected to surpass $100 billion of revenues annually in the next decade.
Peptides are short chains of amino acids that act as messengers in the body, helping regulate hormones, digestion, and metabolism.
Many modern medicines, including diabetes and weight-loss treatments like Ozempic and Mounjaro, are based on peptides.
In news earlier on Wednesday, Arecor said it had partnered with an unnamed biopharmaceutical company to develop a new peptide therapy formulation.
The partner is funding the project, with the potential for a licensing deal if successful. Arecor's Arestat technology enhances drug formulations, improving their stability and effectiveness.
The company is also working on oral versions of GLP-1 receptor agonists, a key class of weight-loss and diabetes drugs. Arecor expects an update on this project in the first half of 2025. Shares rose 3% to 52.3p on Wednesday.
Panmure Liberum, in a note, told investors: "Therapeutic peptides are a large market, expected to reach $100 billion by 2034, and are generally have complex delivery requirements, making them particularly well suited to reformulation."