Shares in Arecor Therapeutics PLC (AIM:AREC) rose 12% in morning trading after the company announced a new development deal with US biotech group Skye Bioscience to improve the formulation of a mid-stage obesity drug.
The Cambridge-based firm will apply its proprietary Arestat technology to create a more concentrated version of nimacimab, a monoclonal antibody that targets the CB1 receptor, which plays a role in appetite and metabolism.
The aim is to enhance the drug’s convenience for patients, potentially reducing the dose volume or frequency.
Skye is currently testing nimacimab in a phase IIa trial, with interim results due later this year. It will fund the development work and may license the improved formulation for future commercial use.
Unlike GLP-1-based therapies, nimacimab blocks CB1, a mechanism previously associated with safety concerns. Skye believes its antibody approach can offer a safer alternative.
The deal broadens Arecor’s growing portfolio of drug reformulation partnerships.
Following the update, Panmure Liberum repeated its 'buy' advice and 245p target - a significant premium to the current price of 46p (up 5p).
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