REG - Arecor Therapeutics - Trading and Funding Update

Arecor TherapeuticsAnnouncement

10/06/2024 07:00

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RNS Number : 7052R  Arecor Therapeutics PLC  10 June 2024

Arecor Therapeutics plc

("Arecor" or "the Company")

 

TRADING AND FUNDING UPDATE

 

Cambridge, UK, 10 June 2024: Arecor Therapeutics plc (AIM: AREC), the
biopharmaceutical group advancing today's therapies to enable healthier lives,
today provides a trading and funding update.

 

As announced at the time of the Company's results for the year ended 31
December 2023, the Company requires additional funding, noting that the
Company is not yet profitable and there are inherent uncertainties in the
timing and quantum of revenue growth. The Company stated that it had a
reasonable expectation of raising funds in the period to 31 December 2024
(although this was not guaranteed) and that, if needed, it could apply a
number of cost mitigations.

 

Since announcement of the Company's results, the Company has identified that
its working capital requirements have accelerated primarily as a result of the
timing of potential pipeline revenue and an increase in costs. The Company is
examining potential cost mitigation in the near term. In the absence of
significant cost mitigation, funding is now expected to be required in Q3
2024. The Company continues to review all revenue and cost assumptions and
will update shareholders in due course as appropriate.

 

Notwithstanding the working capital requirements which are highly dependent on
timing and quantum of revenue and actual costs incurred, the Company currently
expects that revenue for 2024 remains in line with consensus market
expectations, however this remains dependent on revenue growth across all
areas of the business including new potential licensing deals, increased
Tetris Pharma sales and royalties from AT220, the timing and magnitude of
which are not all fully within the Company's control.

 

Additionally, since announcement of the Company's highly positive results for
its ultra-concentrated ultra-rapid acting insulin, AT278, which demonstrated
superiority in a phase I clinical trial in overweight and obese people with
type 2 diabetes, the Board has concluded that the optimal value inflection for
AT278 and value for shareholders is likely to be achieved through conducting
an insulin pump study which should provide sufficient data for potential
licensing partners, to further demonstrate the potential of AT278 to disrupt
the market by enabling the next generation of truly miniaturised, longer-wear
insulin pumps, a key focus for patients, physicians and the industry. The
Company has not committed to any costs in connection with this study, however,
believes that these data would optimally position this product for strategic
partnering.

 

Sarah Howell, Chief Executive Officer of Arecor, said: "We believe the growth
potential for the Company remains compelling with a number of revenue and
significant partnership opportunities. We are focussed on addressing the
funding requirements for the business to deliver this growth and to capture
the value of our platform and insulin assets."

 

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

 

-ENDS-

 

For more information, please contact:

 

 Arecor Therapeutics plc                         www.arecor.com (http://www.arecor.com/)
 Dr Sarah Howell, Chief Executive Officer        Tel: +44 (0) 1223 426060

                                                 Email: info@arecor.com (mailto:info@arecor.com)

 Susan Lowther, Chief Financial Officer          Tel: +44 (0) 1223 426060

                                                 Email: info@arecor.com (mailto:info@arecor.com)

 Panmure Gordon (UK) Limited (NOMAD and Broker)
 Freddy Crossley, Emma Earl (Corporate Finance)  Tel: +44 (0) 20 7886 2500

 Rupert Dearden (Corporate Broking)

 WG Partners LLP (Financial Advisor)
 Nigel Barnes, Satheesh Nadarajah                Tel: +44 (0)203 705 9321

 David Wilson, Claes Spang

 ICR Consilium
 Chris Gardner, David Daley, Lindsey Neville     Tel: +44 (0) 20 3709 5700

                                                 Email: arecor@consilium-comms.com (mailto:arecor@consilium-comms.com)

 

Notes to Editors

 

About Arecor

Arecor Therapeutics plc is a globally focused biopharmaceutical company
transforming patient care by bringing innovative medicines to market through
the enhancement of existing therapeutic products. By applying our innovative
proprietary technology platform, Arestat™, we are developing an internal
portfolio of proprietary products in diabetes and other indications, as well
as working with leading pharmaceutical and biotechnology companies to deliver
therapeutic products. The Arestat™ platform is supported by an extensive
patent portfolio.

 

For further details please see our website, www.arecor.com
(http://www.arecor.com)

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