Arecor takes cash and kudos into fight for global glory
Cambridge’s Arecor Therapeutics, a new darling of the UK stockmarket, saw its share price increase 15p – more than 3.4 per cent – to 455p on the back of strong progress in the six months to the end of June.
Arecor, which recently raised £20 million through an oversubscribed AIM IPO, saw interim revenue flat at £0.5m and loss after tax triple to £3.1m from £1m.
But the business has power in its portfolio and cash in its coffers and punters are clearly backing its pipeline of potential products – chiefly rapid insulin delivery to fight diabetes. The business is poised to take the US by storm with its headline solutions.
CEO Sarah Howell said: “We have made tremendous progress across the business during the first six months of the year with our successful IPO on AIM and very successful Phase I clinical results for AT278 being key highlights.
“Earlier this week, we announced positive results from the Phase I clinical trial for our ultra-concentrated ultra-rapid acting insulin, AT278, the second product in our diabetes franchise.
“This follows the positive results of the Phase I clinical trial for AT247, our ultra-rapid acting insulin, and positions Arecor with a combination of rapid concentrated and ultra-rapid insulins to advance diabetes treatment.
“In addition, our new partnership agreements with Lilly and Par, and most recently with Intas Pharmaceuticals, further demonstrate the strength and breadth of our Arestat™ platform.
“With the £20m raised on IPO, we are now well-placed to advance our proprietary pipeline with further clinical trials for our lead products planned in the coming year, including the expected completion of the US Phase I clinical trial for AT247.”
Also in the period, Arecor signed three new partnership agreements with Eli Lilly and Company, Par Sterile Products and Intas Pharmaceuticals and was awarded a £2.8m Innovate UK grant to support Phase II development of AT247.
The company has cash and equivalents of £22.1m – 10 times the figure 12 months ago. It is also debt free, following the conversion of £4.4m worth of loan notes into new ordinary shares, immediately prior to the IPO.