Arecor Therapeutics PLC (AIM:AREC) has struck a partnership with an American medical device maker to advance its experimental insulin treatment, while also securing up to $11 million through a royalty rights sale.
The Cambridge company said Thursday it has signed a co-development deal with Sequel Med Tech, a private US firm that recently launched its twiist insulin pump.
Under the agreement, each side will commit as much as $1.3 million to prepare Arecor’s flagship candidate, AT278, for a phase II trial.
AT278 is the only ultra-concentrated and ultra-rapid insulin in development. At 500 units per millilitre, it can deliver higher doses in smaller volumes.
That design could allow pumps to be worn for longer or made smaller, an important feature for people with diabetes who need large daily doses of insulin but currently have limited pump options.
Sequel’s pump technology could be a strong fit. Its twiist system uses acoustic sensors, branded as iiSure, to measure the volume of each microdose and detect blockages quickly.
That accuracy, Sequel executives say, is especially important when handling concentrated insulin.
Clinical trial preparations, including talks with US regulators and test manufacturing, are expected to be complete in the first half of 2026, setting up a potential Phase 2 launch in the second half of that year.
At the same time, Arecor has sold future royalty streams linked to two partnered products to Ligand Pharmaceuticals of the US.
Ligand will pay $7 million upfront, plus up to $4 million more if the products reach commercial milestones. The structure means
Arecor raises cash without issuing new shares, extending its financial runway to at least mid-2027.
The announcements came alongside interim results for the six months to June 30. Revenue held steady at £2 million, while research and development costs fell to £1.3 million from £1.7 million a year earlier.
Arecor reported a loss after tax of £2.5 million, compared with £4.6 million in the same period of 2024. Cash on hand at the end of June stood at £1.9 million.
Operationally, the company highlighted progress across several fronts. It reported encouraging lab data for both AT278 and another insulin candidate, AT247, in pump systems.
It also advanced its obesity programme with early-stage work on an oral version of GLP-1, the same class of drug that underpins blockbuster injectables like Ozempic and Wegovy.
Data from that project are expected later this year. In addition, Arecor signed three new formulation collaborations under its Arestat technology platform, generating more than £1 million in pre-licence revenue.