Arecor Therapeutics PLC (AIM:AREC) shares jumped 31% on Thursday after the Cambridge-based biotech unveiled a US partnership to advance its flagship insulin candidate and raised up to $11 million through a royalty rights sale.
The AIM-listed group said it has signed a co-development agreement with Sequel Med Tech, a private American company behind the newly launched twiist insulin pump.
Both parties will invest up to $1.3 million to prepare Arecor’s ultra-concentrated, ultra-rapid insulin AT278 for a phase II trial.
AT278 delivers 500 units per millilitre, allowing higher doses in smaller volumes.
That design makes it suitable for longer-wear or smaller pumps, addressing the needs of people with diabetes requiring large daily doses of insulin.
Sequel’s iiSure technology uses acoustic sensors to measure each microdose and quickly detect blockages, which the companies said is especially important when working with concentrated insulin.
Trial preparations, including FDA consultations and test manufacturing, are expected to wrap up in the first half of 2026.
Separately, Arecor sold future royalty streams tied to two partnered products to Ligand Pharmaceuticals, securing $7 million upfront and up to $4 million in milestones. The deal extends its cash runway to mid-2027.
"All of [this] puts the company on a much more secure footing and accelerates the development of AT278, the most valuable programme in the Arecor portfolio, towards the pivotal phase," said Panmure Liberum in a note.
The broker raised its price target to 251p from 245p, a significant premium to Thursday's price of 95p, up 22.5p.