Shareholders back Arecor optimism in Type 2 diabetics arena

Its share price when a battered stockmarket opened after Easter was slightly higher on the results but still too close for comfort to the 52-week low. CEO Sarah Howell is convinced better times are ahead.

Total revenue was slightly ahead at £5.1m (2023: £4.6m)but R & D spend was almost halved - from £5.4m to £3.3m.

The company raised £6.4m during the year, which included support from two international life science healthcare investors. Despite that fundraise, cash and short-term investments of £3.3m at year-end was less than half the £6.8m total at the end of the previous year.

Howell says: “The positive advancements within our diabetes portfolio support our confidence in the potential of AT278 to generate significant value creation for the company and shareholders. In addition, on the back of early initial positive in vitro data, we have the opportunity to leverage our expertise to develop a novel technology platform for the oral delivery of peptides – one that could unlock substantial value in a rapidly expanding market.

“With our streamlined focus to fully pursue high value R & D opportunities underpinned by the company’s highly renowned and innovative drug delivery and development expertise, we are well positioned for significant future growth and success.”

Arecor is focusing on high value R & D underpinned by its Arestat™ technology and reports significant advancements in its diabetes portfolio with positive progress towards a strategic partnership for AT278.

Its ultra-concentrated, ultra-rapid acting insulin candidate, AT278, met all primary and secondary endpoints and demonstrated superiority to NovoRapid® and Humulin® R U-500, in a Phase I clinical trial in Type 2 diabetics with a high body mass index.

Arecor adds that it is progressing positive negotiations with insulin device companies for a strategic partnership for AT278.