Arecor Therapeutics Posts Interim Results with Key Partnerships and Extended Cash Runway

Arecor’s interim results: partnerships, FDA tailwinds and a longer cash runway

Arecor Therapeutics has reported steady half-year numbers and – more importantly – landed two deals post period-end that change the shape of the next 18 months. The focus is tight: advance AT278, its ultra-concentrated (500U/mL) ultra-rapid insulin, in automated insulin delivery systems, and build a high-value oral peptide delivery platform starting with GLP-1 in obesity.

Headline figures for the six months to 30 June 2025 were sensible in a transition year. Revenue held at £2.0 million, the loss after tax narrowed to £2.5 million (1H 2024: loss £4.6 million), and cash at 30 June stood at £1.9 million. Crucially, a royalty financing with Ligand, signed after the period, brings $7.0 million upfront and extends the cash runway into 1H 2027.

AT278 + AID: setting up a Phase 2 insulin study

AT278 is described as the only ultra-concentrated and ultra-rapid insulin in development. The use case here is automated insulin delivery (AID) – think smart pumps that automatically adjust insulin based on glucose readings. Higher concentration and faster action should enable smaller, longer-wear, next-gen systems that could simplify life for people with diabetes.

Post period-end, Arecor received positive FDA feedback on a Phase 2 study design for AT278 in combination with an AID system – a meaningful de-risking step. It also signed a co-development deal with Sequel Med Tech to combine AT278 with Sequel’s twiist AID system. Each party will fund up to $1.3 million of Phase 2-enabling work. Development has started, with an IND (Investigational New Drug application – the FDA’s permission to begin clinical trials) targeted for filing after the work completes in 1H 2026. If approved, a pivotal Phase 2 could begin in 2H 2026. Both parties also flagged intent to agree a broader development and commercial deal in due course.

Oral GLP-1 platform: data due in 2H 2025

The second strategic pillar is an oral peptide delivery platform, starting with GLP-1 receptor agonists in obesity and diabetes. GLP-1 drugs are a fast-growing class, but most are injectable. Arecor aims to improve oral bioavailability versus the only marketed oral GLP-1, Rybelsus, which is reported here as less than 1%.

So far, the company reports “promising” in vitro results and is running in vivo pharmacokinetic studies to determine the best route to boost absorption. Data are due in 2H 2025 and will define next steps. A new Scientific Advisory Board of leading oral delivery experts has been set up to guide the programme.

Arestat partnerships: three new deals and future licensing shots on goal

Arecor’s formulation technology, Arestat, continues to pull in partner work. In 1H 2025, three new formulation development collaborations were signed with total pre-licence revenue of over £1 million. These include Skye Bioscience, focused on a higher concentration formulation of its CB1 inhibitor nimacimab, plus two undisclosed partners (one a major global pharma, one a clinical-stage biotech developing peptides). These are early-stage but provide optionality for future licences and milestones.

Tetris Pharma wind-down: cleaning up the portfolio

Non-core Tetris Pharma is being wound down in an orderly fashion. In May, Arecor sold inventory and rights to non-Ogluo products to Aspire Pharma for £0.5 million. The company expects Tetris to be cashflow positive in 2025, with sharply lower selling, general and administrative costs versus 2024, and to cease Ogluo sales by 30 September 2025 before returning the marketing authorisation to Xeris.

Financial snapshot: tightening the belt and extending the runway

It is a lean set of financials by design as the business refocuses on high-value R&D and exits non-core activities. A few points worth noting:

• Partner revenue rose to £1.0 million (1H 2024: £0.6 million), while product revenue fell to £1.0 million (1H 2024: £1.4 million) as Tetris activity slowed.
• R&D spend reduced to £1.3 million (1H 2024 re-stated: £1.7 million), reflecting lower proprietary clinical spend.
• SG&A dropped to £2.1 million (1H 2024 re-stated: £3.4 million), showing early benefits from the Tetris exit.
• Gain on disposal of non-Ogluo Tetris products: £0.4 million.
• Cash at 30 June 2025: £1.9 million, supplemented post period by $7.0 million (£5.2 million) upfront from Ligand.

Key metric (1H 2025)	Figure
Revenue	£2.0 million
Partner revenue	£1.0 million
Product revenue	£1.0 million
R&D expense	£1.3 million
SG&A expense	£2.1 million
Gain on disposal	£0.4 million
Loss after tax	£2.5 million
Cash and short-term investments (30 Jun)	£1.9 million
Cash runway (post Ligand deal)	Into 1H 2027

Other operating income was £0.1 million from RDEC (the UK R&D Expenditure Credit). The basic and diluted loss per share was £0.07.

Royalty financing with Ligand: why it matters

Arecor has sold global royalty rights related to AT220 (an Arestat-enhanced biosimilar marketed by a global pharma) and potential milestones and technology access fees related to AT292 (licensed to Inhibrx, now Sanofi’s efdoralprin alfa), for up to $11.0 million. The company receives $7.0 million upfront, plus up to $4.0 million contingent on commercial milestones (with $1.0 million expected in 2026). This immediately co-funds the AT278-Sequel Phase 2-enabling work and strengthens the balance sheet.

As part of the deal, Ligand gets warrants over 1,002,739 ordinary shares at an exercise price of 67.39 pence, exercisable over 10 years. The trade-off here is classic: non-dilutive cash now to accelerate core programmes, in exchange for giving up future royalty streams and issuing long-dated warrants that could be dilutive if exercised.

Intellectual property: still a strong moat

Arecor reports more than 100 granted patents across major territories protecting Arestat and enhanced therapeutics developed from it. In 1H 2025, seven new patents were granted in the US, Europe, Canada and South Korea, including additional protection around the diabetes portfolio. That IP breadth matters when negotiating partnerships.

Positives, watch-outs and near-term catalysts

What looks positive

• Positive FDA feedback on AT278’s Phase 2 study design with an AID system – a key de-risking step.
• Co-development with Sequel aligns drug and device – essential for real-world adoption – and has funding in place for enabling work.
• Runway extended into 1H 2027, giving time to execute without an immediate equity raise.
• Loss narrowed to £2.5 million as costs fell, demonstrating focus and discipline.
• Three new Arestat collaborations add optionality for future licensing economics.

What to watch

• Execution on AT278 timelines: completing enabling work by 1H 2026, filing the IND, and initiating Phase 2 in 2H 2026.
• Oral GLP-1: achieving a tangible step-up in bioavailability versus less than 1% is the big value driver – data are due in 2H 2025.
• Royalty financing trade-off: foregone future income, plus potential dilution from 1,002,739 warrants at 67.39 pence.
• Tetris wind-down: closure costs are expected in 2H 2025; final accounting likely to be shown as discontinued operations at year-end.
• Partner dependency: AT278 progress now interlinked with Sequel’s timelines and device readiness.

Upcoming catalysts

• 2H 2025: in vivo data readouts to guide the oral GLP-1 programme.
• Ongoing: AT278-AID Phase 2-enabling progress and potential broad co-development agreement with Sequel.
• 1H 2026: completion of enabling work and intended IND filing for AT278 in AID.

My take

This is a cleaner, more focused Arecor. The combination of FDA feedback, a credible pump partner in Sequel, and non-dilutive funding from Ligand gives AT278 a realistic path into a pivotal Phase 2 study in 2026. On the second pillar, if Arecor can materially improve oral GLP-1 bioavailability, partner interest should follow.

Risks remain – this is still early-stage development, dependent on partner execution and regulatory milestones, and the royalty financing sacrifices future income. But the extended runway into 1H 2027 buys valuable time. Near-term, the 2H 2025 oral GLP-1 data and visible progress on AT278 enabling work are the updates to watch.