Arecor seeks broader AT278 partnership as phase II trial start is targeted for 2026
Arecor said it is in talks on a broader AT278 partnership as it targets a phase II trial start in the second half of 2026. The company also cited FDA feedback, Ligand financing and year-end cash of £6.1 million.
Arecor Therapeutics PLC said 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 deal is intended to support both the clinical study and longer-term commercialisation of AT278, an ultra-concentrated, ultra-rapid-acting insulin formulated at 500U/mL for use with automated insulin delivery 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 automated insulin delivery system, and both companies have since confirmed their strategic intent to expand that arrangement. Positive feedback from the US Food and Drug Administration 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 phase II clinical study is subject to funding, and the company said it is actively working on a similar co-development case funding deal for phase II clinical and beyond.
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. Nonclinical pharmacokinetic studies are ongoing to inform the optimal approach to improving bioavailability.
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-end, from £3.2 million in 2024, supported by the Ligand proceeds, and the company said cash at the end of December 2025 extended the runway into the first half of 2027.