Arecor Therapeutics (AREC) H1 2025 earnings summary

Executive summary

• Strategic focus on diabetes and cardiometabolic diseases, prioritizing high-value R&D and winding down non-core Tetris Pharma operations.

• Lead product AT278, an ultra-concentrated rapid-acting insulin, advancing toward Phase 2 clinical studies in 2H 2026, supported by a co-development partnership with Sequel MedTech.

• Oral GLP-1/peptide delivery platform progressing, with key preclinical/PK data expected in 2H 2025.

• Strengthened financial position through non-dilutive royalty financing with Ligand Pharmaceuticals, providing up to $11 million, and expanded IP portfolio.

• Formation of a new Scientific Advisory Board to support oral drug delivery strategy.

Financial highlights

• Revenue stable at £2.0 million for 1H 2025; partner revenue increased to £1.0 million, while product revenue decreased due to Tetris Pharma wind-down.

• R&D expenses reduced to £1.3 million (1H 2024: £1.7 million); SG&A costs also down due to Tetris reduction.

• Loss after tax narrowed to £2.5 million (1H 2024: £4.6 million).

• Cash at 30 June 2025 was £1.9 million, with $7 million/£5.2 million received post-period from Ligand deal.

• Gain on disposal of non-Ogluo Tetris Pharma products recognized as an exceptional item.

Outlook and guidance

• Cash runway extended into 1H 2027, supporting all phase two enabling costs and ongoing R&D.

• Phase 2 clinical study for AT278 targeted for 2H 2026, with enabling activities underway and positive FDA feedback.

• Oral GLP-1/peptide platform development ongoing, with key data expected in 2H 2025.

• Strategic intent to expand oral peptide delivery platform and pursue new partnerships.