Panmure Liberum has reiterated its Buy stance on Arecor Therapeutics PLC (AIM:AREC), arguing the market is underappreciating the potential of its ultra-concentrated, ultra-rapid insulin candidate AT278 as automated insulin delivery (AID) systems broaden beyond type 1 diabetes.
In a note, analysts highlighted Arecor’s September co-development deal with Sequel Med Tech as a key step towards a phase 2-ready package, with the partners targeting clinical trial commencement in H2 2026. They see Sequel’s twiist pump as a strong strategic fit, pointing to its accuracy as particularly important for a U500 insulin, where dosing precision is critical.
Liberum said the combination could unlock new opportunities in the growing AID market, specifically type 2 diabetics, smaller pumps and longer wear.
Arecor estimates an initial US opportunity of around $3.3bn for the insulin alone, based on current pricing and without assuming a premium for AT278’s characteristics, which Liberum views as conservative.
The broker, meanwhile, expects a broader collaboration agreement to be signed ahead of phase 2 initiation. Liberum retains a 251p target price which compares to a market price of around 82.5p.