REG - Arecor Therapeutics - Year End Trading Update

Arecor TherapeuticsAnnouncement

01/02/2024 07:00

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RNS Number : 6045B  Arecor Therapeutics PLC  01 February 2024

 

Arecor Therapeutics plc

("Arecor" or the "Group")

 

YEAR END TRADING UPDATE

 

-      Patient enrolment complete in AT278 clinical trial and on track
for key data readout in 1H 2024

-      First commercial launch of product incorporating Arestat™,
AT220, triggering milestone payment and now generating royalties

-      New revenue-generating technology partnership agreements signed

-      Total Income of £5.6 million (2022: £3.5 million) including
grant income

-      Total Group revenue of £4.6 million (2022: £2.4 million)
representing c.90% growth

-      Tetris Pharma product sales increased to £2.9 million (2022:
£1.0 million) with a focus on the commercial roll-out of Ogluo®

-      Cash and cash equivalents balance of £6.8 million, ahead of
market expectations

 

Cambridge, UK, 1 February 2024: Arecor Therapeutics plc (AIM: AREC), the
biopharmaceutical group advancing today's therapies to enable healthier lives,
provides a business update and announces that its audited final results for
the 12 months ended 31 December 2023 will be issued during the week commencing
22 April 2024.

 

Sarah Howell, Chief Executive Officer at Arecor, said: "With a first
commercial product incorporating Arestat™ launched in late 2023 and now
generating royalties, license milestones triggered on partnered products, a
stream of new pharma technology partnerships and continued momentum with our
diabetes portfolio clinical development, we continue to realise the potential
of our Arestat™ platform and, in doing so, are building a significant
biopharmaceutical company. We are encouraged by the continued success of the
Tetris Pharma roll-out of Ogluo® across the UK and Europe, which is reflected
in strong sales performance as awareness and access to this key diabetes
product increases. Looking forward, with further partnerships anticipated from
our in-house proprietary specialty hospital portfolio, in addition to key
Phase I clinical data for AT278 expected in 1H 2024, we look forward to
continued growth and value creation for 2024."

 

Trading for the full year ended 31 December 2023

The strong commercial performance across the Group is reflected in the
increased revenue for the full year of £4.6 million or c. 90% growth compared
to £2.4 million recognised in the prior year. Total Income of £5.6 million
(2022: £3.5 million) included grant income from the Innovate UK 2021 award.
The Group closed its financial year with cash and cash equivalents of £6.8
million (2022: £12.8 million).

 

Revenue, total income, closing cash and cash equivalents balances are
unaudited, with the Group's audited results to be issued during the week
commencing 22 April 2024.

 

Licensed programmes - validating the value of the Arestat™ platform to
patients and growing a diversified revenue stream

Commercialisation by Arecor's partner of the first product incorporating
Arestat™ technology, AT220, was a significant milestone for the Group,
further demonstrating the strength of its technology and its value to partners
and ultimately patients. The first commercial sale in November triggered a
license milestone payment and Arecor is now receiving royalties on product
sales with initial royalties for the short period post launch included in 2023
revenues.

 

In addition to AT220, Arecor has two further partnered programmes under
license - Hikma's development of ready-to-use injectable medicine AT307, and
Inhibrx's development of alpha-1 antitrypsin deficiency therapy AT292
(INBRX-101), which continue to advance well under our partners' control and
have both generated license milestone payments to Arecor within FY 2023.

 

Last month, Inhibrx and Sanofi announced that the companies have entered into
a definitive agreement under which Sanofi will acquire all the assets and
liabilities associated with INBRX-101. That announcement is a further
endorsement of the Group's Arestat™ platform and highlights both the value
of this novel therapy for patients and its future commercial potential. The
Group believes that Sanofi is well placed to complete the late-stage
development of this novel medicine and, ultimately, bring it to patients in
need.

 

In December, the Group announced a co-development and exclusive licence option
agreement with a leading global medical products company for a high-value,
ready-to-dilute oncology product from Arecor's proprietary Specialty Hospital
pipeline. The agreement involves further co-development and regulatory work
which is now underway. The agreement includes an option for the partner to
exercise a license to further develop and commercialise the product, with
Arecor eligible to receive potential developmental milestones.

 

Technology partnerships - new revenue-generating collaborations

Our portfolio of technology partnerships with leading pharmaceutical and
biotechnology companies, to enhance their proprietary products across a range
of indications and stages of development, continues with five new agreements
signed in 2023 and earlier this year. These continue to validate the strength
and the need for the Arestat™ technology platform, provide near term revenue
generation and also significant upside recurring revenue potential from future
licensing.

 

In November, the Group signed a further collaboration with an existing
partner, Lilly, to develop a novel liquid formulation of one of Lilly's key
products with enhanced properties. That was followed last month with the
expansion of an ongoing, exclusive formulation study collaboration with the
pharmaceutical division of one of the world's largest chemicals marketing and
pharmaceuticals companies, to develop a differentiated, ready-to-use liquid
formulation of the company's product, AT351. In both collaborations, the
Group's partners are funding the development work with options to acquire the
rights to the new proprietary formulations and associated intellectual
property under Arecor's technology licensing model. Both illustrate partner
companies' confidence in the Group's expertise and its value as a partner of
choice in the development of enhanced safe, efficacious and more convenient
treatments that improve patient outcomes.

 

Further technology partnerships, the out-licensing of programmes from those
partnerships, together with new licenses from the Group's proprietary
pipeline, are anticipated to continue driving revenue growth in 2024.

 

Diabetes - creating a disrupter insulin

Diabetes has reached pandemic levels, with approximately 537 million adults
living with diabetes worldwide.  There are still significant unmet needs in
diabetes care and the Group is focussed on developing much faster acting and
more concentrated, rapid acting insulins, to improve treatment options and
outcomes for this growing patient population within the existing $6.4 billion
meal-time insulin market. The Group's Phase I clinical study of
ultra-concentrated, ultra-rapid acting insulin candidate AT278 in the type 2
diabetes population, has completed patient enrolment and is on track to
deliver results in 1H 2024. AT278 has the potential to be a critical enabler
in the development of next generation miniaturised and longer wear insulin
delivery systems, which are a significant area of focus for the major insulin
device companies today.

 

Tetris Pharma - continued success of Ogluo® roll-out

The Group's specialty pharmaceutical business, Tetris Pharma, continues to
build sales momentum through the commercial roll-out of its ready-to-use
glucagon auto-injector pen for severe hypoglycaemia, Ogluo®. The increase in
Tetris Pharma product sales to £2.9 million (2022: £1.0 million) was driven
by Ogluo®, which now represents the majority of product sales. The
appointment last month of Dr. Helen Parris as Senior Vice President,
Commercial and General Manager of Tetris Pharma, is an important catalyst to
continue to drive Tetris Pharma revenue.

 

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

 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

 

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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