Arecor cashing in on potential blockbuster
Cambridge biopharma business Arecor has clinched a potentially lucrative milestones payback from a global pharmaceutical and healthcare partner.
No figures for the milestones are being revealed due to client confidentiality agreements but Arecor confirms that the biosimilar in question is of blockbuster status – with annual sales of at least $1 billion – and that the licence concerned is milestone and royalty bearing, including an undisclosed up-front exercise of licence option payment.
Arecor is focused on developing superior biopharmaceuticals via the innovative reformulation of proteins and peptides to improve the treatment of diabetes and other conditions.
The customer concerned has exercised its licence option to Arecor’s proprietary formulation technology to develop differentiated biosimilar products.
This is the first licence conversion resulting from a multi-product research agreement entered into by both parties at the end of 2015.
The partner has exercised its worldwide exclusive option to Arecor’s formulation and the associated Arestat technology. This will allow the further development, manufacture and commercialisation of the superior reformulated biosimilar product. In return, Arecor will receive payments on relevant development milestones and royalties on sales.
Dr Sarah Howell (pictured above), Arecor’s CEO, said: “This licence conversion is a major milestone for the company and clear evidence that we can successfully exploit our technology to deliver superior formulations of biosimilar products for our pharmaceutical customers and help them differentiate their biosimilar pipelines from competition.
“In so doing, patients will gain access to superior and more affordable versions of key therapeutics.
“This agreement further accelerates the year-on-year growth in our technology licensing business, both in terms of revenue and profit and supports our dual business model and the development of our diabetes products.”
To complete a heady few days for the business, Arecor was chosen to appear in the 2016/17 edition of The Parliamentary Review, featuring alongside Prime Minister Theresa May and a small number of outstanding
organisations in the technology edition.
Established by former minister David Curry shortly after the 2010 general election, The Parliamentary Review demonstrates how sector leaders have responded to challenges in the political and economic environment. Arecor was selected as an example of an outstanding organisation and growth company.
Dr Howell said: “We are thrilled to have been chosen to feature in this year’s Review alongside such an august and select group of companies.
“Our inclusion is a very welcome endorsement of our vision to build a global diabetes specialty pharmaceutical company leveraging proprietary technology to develop superior products that will make a significant
contribution in improving the treatment of diabetes and other conditions.”