Business
Co-Development Agreement & Monetisation Deal
Arecor Therapeutics has entered a co-development agreement with Sequel Med Tech for AT278, committing up to $1.3 million each to fund development work for a Phase 2 trial, with strategic intent for a broader partnership. Additionally, Arecor has sold royalty rights related to AT220 and milestone and technology access fees related to AT292 to Ligand for up to $11 million (£8.2 million), including a $7 million upfront cash payment and a potential $4 million upon achieving certain commercial milestones, with $1 million expected in 2026. Ligand will also receive warrants for 1,002,739 ordinary shares at an exercise price of 67.39 pence. This agreement extends Arecor's cash runway to the first half of 2027. Disclaimer*
About this update from Arecor Therapeutics Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 (\"UK MAR\").\n \n\n\n\nArecor Therapeutics plc\n(\"Arecor\" or the \"Company\")\n \nCo-development Agreement with US Insulin Pump Device Company for AT278\nand\nSale of Royalty and Technology Access Fees for up to $11 million\n\n- AT278 (500U/mL) is the only ultra-concentrated and ultra-rapid acting insulin in development designed to enable the next generation of longer-wear and miniaturised automated insulin delivery (AID) systems\n- Arecor and Sequel Med Tech, LLC to commit up to $1.3 million each to fund development work in preparation for pivotal Phase 2 trial for AT278-Insulin Pump programme\n- Strategic intent is to progress to a broader co-development and commercialisation partnership for Phase 2 trial and beyond\n- Non-dilutive funds raised through the monetisation of Arecor's royalty rights related to AT220 and milestone and\ntechnology access fees related to AT292\n- Cash runway extended to 1H 2027\n \nCambridge, UK, 25 September 2025: Arecor Therapeutics plc (AIM: AREC), the biopharmaceutical company focused on drug development and delivery in diabetes and other cardiometabolic diseases, has signed a co-development agreement with Sequel Med Tech LLC (\"Sequel\"), a company developing state-of-the-art insulin delivery technologies, to combine AT278 (500U/mL) with Sequel's twiist™ Automated Insulin Delivery (AID) system powered by Tidepool, and a royalty financing agreement with Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) (\"Ligand\") which will raise non-dilutive capital of up to $11 million (£8.2 million).\nSarah Howell, CEO of Arecor Therapeutics said:\n\"The co-development agreement for AT278 and the non-dilutive fund raising via the monetisation agreement are both major strategic achievements for Arecor. The Sequel agreement marks a key milestone, furthering our ambitions to realise AT278's significant benefits for people living with diabetes as well as building substantial value for our shareholders. The funding realised through the monetisation of specific royalty rights enables us to accelerate AT278's clinical development and extends our cash runway to 1H 2027 without dilutin...