Positive negotiations are in progress on a broader co-development and commercialisation partnership for the Phase 2 trial of Arecor Therapeutics PLC's (AIM:AREC) ultra-concentrated insulin candidate, AT278, with management identifying the agreement as a key focus for 2026.
The Cambridge-based biopharmaceutical company said the discussions follow a September deal with Sequel Med Tech, under which both parties committed up to $1.3 million to support development of AT278 in combination with Sequel’s twiist automated insulin delivery system.
The phase II trial will target people with high daily insulin needs and builds on a successful Type C meeting with the US Food and Drug Administration, where Arecor received positive feedback on its innovative clinical study design.
Chief executive Sarah Howell said: “The combination of AT278 with a device such as Sequel’s twiist AID system addresses key unmet needs for people living with diabetes and is a compelling proposition for this growing market.”
Alongside diabetes, Arecor is developing a platform for the oral delivery of complex peptides, beginning with an improved formulation of glucagon-like peptide-1 (GLP-1) based on semaglutide.
The company noted that existing oral GLP-1 treatments such as Rybelsus offer bioavailability below 1%. Arecor filed a European patent application in the final quarter of 2025 for novel compositions intended to improve absorption and is conducting non-clinical studies throughout 2026.
Howell said the oral peptide platform “has a low resource burden but a large commercial upside opportunity”.
The update follows a strategic refocus during 2025, including the closure of Tetris Pharma and an emphasis on high-growth opportunities in diabetes and peptide delivery.
Total revenue fell to £3.1 million in 2025 from £5.1 million in the prior year, reflecting the discontinuation of Tetris operations. Revenue from continuing activities rose slightly to £1.7 million.
Cash and cash equivalents increased to £6.1 million, up from £3.2 million, with the company attributing the rise to favourable performance at Tetris prior to closure and a non-dilutive royalty financing deal signed with Ligand Pharmaceuticals worth up to $11 million, of which $7 million was received immediately.