REG - Arecor Therapeutics - Arecor Business Update

Arecor TherapeuticsAnnouncement

20/07/2023 07:00

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RNS Number : 5821G  Arecor Therapeutics PLC  20 July 2023

Arecor Therapeutics plc

("Arecor" or the "Group")

 

BUSINESS UPDATE

 

-      Strong pipeline of revenue-generating collaborations with major
pharmaceutical and biotech companies with further deals anticipated during H2
and beyond

-      Significant progress across proprietary diabetes focused portfolio
with AT278 scheduled to complete within Q4 2023

-      Good partner progress across licensed portfolio

 

Cambridge, UK, 20 July 2023: Arecor Therapeutics plc (AIM: AREC), the
biopharmaceutical group advancing today's therapies to enable healthier lives,
today provides a business update and announces that its interim results for
the six months ended 30 June 2023 will be issued in mid-September.

 

Arecor is pleased to report strong progress across the business in the first
half of 2023, with advances across its in-house and partnered programmes and
continued success in the roll-out of Ogluo® in key territories. Arecor looks
forward to providing a full update on performance and outlook at the time of
its interim results.  The Group's unaudited cash position at 30 June 2023 was
£8.2 million.

 

Sarah Howell, Chief Executive Officer at Arecor, said: "We have continued to
make significant progress across all areas of the business, strengthening the
foundations for future growth across our in-house proprietary products and
partnered programmes and supported by a revenue contribution from our
commercial subsidiary, Tetris Pharma. Later this year we expect key data for
AT278 and anticipate further value inflection points within our licensed
product portfolio. With further partnerships and collaborations expected, we
are continuing towards our ambition of building a significant self-sustaining
biopharmaceutical company."

 

The Group has continued to make strong progress across its proprietary
diabetes focused portfolio.  The second Phase I clinical trial of AT278 in
Type 2 diabetic patients is scheduled to complete within Q4 2023. AT278 is an
ultra-rapid, ultra-concentrated (500U/mL) insulin candidate that has been
designed to accelerate the absorption of insulin post injection, despite a
5-fold increase in concentration compared with 100U/mL insulins available to
patients today. It has the potential to become the gold standard treatment for
the growing population of people with diabetes with high daily insulin needs
as the first and potentially only concentrated, yet rapid acting insulin. A
truly rapid acting, concentrated insulin is also a critical step towards the
advancement of the next generation of longer wear and miniaturised insulin
delivery devices. Positive results from the Group's second Phase I clinical
trial investigating ultra-rapid acting insulin product candidate, AT247,
presented at the American Diabetes Association (ADA) 83rd Scientific Sessions
meeting in June 2023
(https://otp.tools.investis.com/clients/uk/arecor_therapeutics_plc/rns/regulatory-story.aspx?cid=2671&newsid=1697531)
, clearly demonstrate faster insulin absorption than current, gold-standard,
rapid acting insulins and reinforce AT247's potential to enable a fully closed
loop artificial pancreas - a life changing treatment approach for people
living with diabetes.

 

The Group maintains a strong pipeline of revenue-generating collaborations
with major pharmaceutical and biotech companies with further deals anticipated
in H2 and beyond. In June 2023, the Group entered into a revenue-generating
agreement with a leading biopharmaceutical company to support development of a
biosimilar product. This collaboration follows an earlier technology
partnership between the two companies, further demonstrating the strength and
relevance of the Group's technology platform and expertise. This was the
second agreement signed in the first half of 2023, after an additional
formulation agreement with an existing Top 5 pharma partner in February,
bringing the total number of new technology partnerships signed to 10 since
IPO. These partnerships deliver revenue and offer significant upside potential
from licensing under milestone and royalty bearing agreements.

 

The Group's three licensed programmes, under milestone and royalty-based
agreements or equivalent, have also advanced. Arecor continues to expect the
first product incorporating its Arestat™ technology, AT220, to be
commercialised by its partner under a royalty-generating license agreement in
a multi-billion dollar market, with US FDA approval anticipated in H2 2023.

 

In addition, Hikma continues to progress AT307, a ready-to-use ("RTU")
injectable medicine after its milestone-triggering transfer from Arecor in
January 2023. The Group was also pleased to note, in April 2023, that its
partner Inhibrx initiated a registration-enabling trial of INBRX-101, an
Arestat™ formulated optimized recombinant human AAT-Fc fusion protein, for
treatment of patients with emphysema due to alpha-1 antitrypsin deficiency
(AATD).

 

Tetris Pharma, the speciality pharmaceutical company acquired by Arecor in
August 2022, continues the European commercial roll out of its key diabetes
product, Ogluo® (glucagon prefilled autoinjector pen), adding Denmark and
Norway in May 2023
(https://otp.tools.investis.com/clients/uk/arecor_therapeutics_plc/rns/regulatory-story.aspx?cid=2671&newsid=1687531)
, to existing markets in Austria, Germany and the UK, and sales continue to
grow. During the remainder of H2 2023, Tetris Pharma will focus on
accelerating market adoption of Ogluo® and roll-out across key territories.
With this continued focus on growing and maximising the value of Ogluo® in
the UK and Europe, Dr Shafiq Choudhary, Founder and Managing Director, will be
leaving the business later this year following a handover period. The
Management Team and Board of Arecor thank Shafiq for his contribution and
commitment since the acquisition.

 

The momentum we are seeing and the increasingly pan-European focus of our
commercial efforts provide the Group with continued confidence in Ogluo®.
 Sales of Gvoke® in the US also remain strong with continued quarter on
quarter growth and, while the market dynamics clearly differ, the US
experience provides further support for the Group's belief in the growth
potential of the product in the UK and Europe.

 

The Group has continued to strengthen its patent portfolio to protect its
Arestat™ technology platform and proprietary pipeline products, with six
new patent grants this year, most recently, in June 2023
(https://otp.tools.investis.com/clients/uk/arecor_therapeutics_plc/rns/regulatory-story.aspx?cid=2671&newsid=1697860)
, announcing key patents from the European Patent Office and the China
National Intellectual Property Administration, protecting novel formulations
of AT278 and AT247.  The Group's intellectual property (IP) portfolio
currently comprises 36 patent families, including >75 granted patents in
Europe, the US and in other key territories.

 

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

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

                                                 Email: info@arecor.com

 Mo Noonan, Communications                       Tel: +44 (0) 7876 444977

                                                 Email: mo.noonan@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)

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

                                                 Email: arecor@consilium-comms.com

 

Notes to Editors

About Arecor

Arecor Therapeutics plc is a globally focused biopharmaceutical group
transforming patient care by bringing innovative medicines to market through
the enhancement of existing therapeutic products. By applying our innovative
proprietary formulation 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 enhanced formulations of their 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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