Arecor strengthens funding and partnerships as AT278 insulin advances toward Phase 2

Arecor Therapeutics plc (LSE:AREC) has released its audited results for the full year 2025, highlighting solid operational momentum across its diabetes and oral peptide delivery programmes, despite a decline in revenue following the closure of Tetris Pharma.

The company’s lead insulin candidate, AT278, moved closer to Phase 2 development after receiving encouraging feedback from the U.S. FDA. Progress was further supported by a co-development agreement with Sequel Med Tech to integrate AT278 into its twiist automated insulin delivery system. After the reporting period, both companies confirmed plans to expand this collaboration into a broader co-development and commercialisation partnership.

In addition, Arecor continued advancing its early-stage oral peptide delivery platform and strengthened its intellectual property position through new international patent filings. The business also secured three new formulation partnerships based on its Arestat technology, generating more than £1 million in pre-licensing revenue.

On the financial side, Arecor improved its balance sheet through an $11 million royalty financing agreement with Ligand Pharmaceuticals. The company closed the year with £6.1 million in cash, providing sufficient runway to complete Phase 2-enabling activities for AT278 and further develop its oral peptide platform, while maintaining disciplined cost management.

Looking ahead, Arecor’s outlook is supported by strategic partnerships and continued expansion of its intellectual property portfolio, which strengthen its competitive positioning. However, ongoing losses and cash flow pressures remain a challenge. Technical indicators and valuation suggest a broadly neutral stance, reflecting both the risks and potential typical of the biotech sector.

More about Arecor Therapeutics PLC

Arecor Therapeutics plc is a Cambridge-based clinical-stage biotechnology company focused on developing improved treatments for diabetes, obesity, and other cardiometabolic conditions. Its lead programme, AT278, is an ultra-concentrated (500U/mL), ultra-fast-acting insulin currently in development. Alongside this, the company is building an oral peptide delivery platform, initially targeting GLP-1 receptor agonists aimed at a large and growing global market.