Arecor Therapeutics PLC (AIM:AREC), the Cambridge-based biotech focused on diabetes and cardiometabolic treatments, has received a $500,000 commercial milestone payment from Ligand Pharmaceuticals under a royalty financing agreement struck in September 2025.
The payment is the first milestone tranche under a deal in which Arecor sold Ligand the global royalty rights to AT220, an enhanced biosimilar insulin product, and related rights to AT292, a therapy licensed to Sanofi, in exchange for an initial $7 million upfront and up to $4 million in milestone payments.
Arecor said it expects to receive a further $500,000 in the second half of 2026, with the remaining $3 million contingent on future commercial milestones related to both products, which it described as on track.
Chief executive Sarah Howell said the non-dilutive funds are being directed towards AT278, the company's lead programme and the only ultra-concentrated, ultra-rapid-acting insulin in development, which is being paired with Sequel Med Tech's twiist automated insulin delivery system.
A phase II clinical trial of the AT278 combination is expected to begin in the second half of 2026.