Arecor Therapeutics PLC (AIM:AREC), the Cambridge-based diabetes biotech, says positive negotiations are underway on a broader co-development and commercialisation partnership for its lead insulin candidate AT278, as the company targets a phase II clinical trial start in the second half of 2026.
The company described the partnership discussions as a current key management focus, with the deal intended to support both the cinical studyl and longer-term commercialisation of AT278, an ultra-concentrated, ultra-rapid-acting insulin formulated at 500U/mL for use with automated insulin delivery (AID) systems.
Arecor signed an initial co-development agreement with US insulin pump developer Sequel Med Tech in September 2025, covering trial-enabling development work to combine AT278 with Sequel's twiist AID system, and both companies have since confirmed their strategic intent to expand that arrangement.
Positive feedback from the US Food and Drug Administration (FDA) on the phase II design was secured during the year, with trial-enabling work described as progressing well.
To fund development while limiting shareholder dilution, Arecor agreed an $11 million royalty financing deal with Ligand Pharmaceuticals in September 2025, receiving $7 million upfront and with $4 million contingent on commercial milestones, of which $0.5 million has already been received.
The company also reported progress on a separate oral peptide delivery platform, initially targeting oral GLP-1 receptor agonists, the class of drugs that includes semaglutide, with positive in-vitro results and a new international patent filed during the year.
Full-year revenue, including discontinued operations, fell to £3.1 million from £5.1 million in 2024, with the decline attributed to the cessation of operations at subsidiary Tetris Pharma.
Cash and cash equivalents rose to £6.1 million at year's end, from £3.2 million in 2024, supported by the Ligand proceeds.
Chief executive Sarah Howell said the board's current focus was securing the best possible deal to take AT278 into phase II while advancing the oral peptide platform with careful financial management.