Arecor upbeat as shareholders reserve judgement
The upbeat comment from CEO Sarah Howell lit up the AIM-quoted biopharma group’s interim results for the six months to June 30. But shareholders appeared unimpressed as the stock dipped slightly lower on the news.
Revenue was higher at £2m half-on-half (first half 2023 unaudited: £1.67m) and total income slightly lower at £2.03m (£2.33m). Investment in R & D of £2.09m was down on the £2.86m invested in the first half.
It all meant that the post-tax loss was fractionally higher at £4.6m (£4.53m). Cash, equivalents and short-term investments of £2.53m plummeted from £6.61m at the same juncture of 2023.
The picture seems brighter since Arecor clinched its post-period fundraise of £6.4m before expenses, including support from two international life science healthcare investors.
The cash is to be used towards delivering significant value inflection points including investment in R & D to drive high-value partnerships and working capital inventory investment for Ogluo®, as well as strengthening the balance sheet.
Dr Howell said: “During the period we have significantly advanced and expanded our diabetes and obesity portfolio, reporting very positive Phase I clinical results for AT278 demonstrating its clear superiority and potential to improve outcomes and lower the burden for people living with diabetes, and expanding our technology platform in the development of the oral delivery of peptides, initially GLP-1, a potential high value, high growth proposition.
“With multiple opportunities for value creation, we continue to build momentum across the business. With a strengthened financial position following our fundraise we are confident in our ability to deliver against our strategy and excited about what can be achieved through 2024 and beyond.”
In terms of the clinic, Arecor announced significant progress in development of its AT278 insulin candidate, “demonstrating superiority to current best insulins in a Phase I clinical trial in Type 2 diabetics with high BMI.”
It also expanded its diabetes and obesity pipeline, with its oral GLP-1 receptor agonist development initiated.
Arecor entered a strategic research collaboration with Medtronic to develop a novel formulation of insulin for implantable intraperitoneal insulin pump delivery, fully funded by Medtroni.c
Its Arestat™-enabled product, AT220, generated growing royalties under a worldwide licensing agreement.
Arecor said its technology partnerships portfolio offered significant future upside potential from licensing – including expansion of its ongoing collaboration with pharmaceuticals division of one of the world's largest chemicals marketing and pharmaceuticals companies, in addition to the Medtronic partnership.