Shares in Arecor Therapeutics PLC (AIM:AREC) rose 2% to 50p on Wednesday after the company announced a new partnership with a major global pharmaceutical group.
The AIM-listed biotech has signed a formulation study agreement under which it will use its proprietary Arestat platform to develop an improved version of one of the partner’s existing products. The identity of the larger firm has not been disclosed.
While the deal is at the early study stage, Arecor said there is potential for future licensing arrangements depending on the outcome.
Chief executive Sarah Howell said the agreement “further validates the potential of our proprietary technology platform ... to enable enhanced formulations of partners’ proprietary products which would otherwise be unachievable.”
Panmure Liberum repeated its 'buy' recommendation following the update and reckons the stock is worth 324p - a significant premium to the current valuation.