REG - Arecor Therapeutics - Interim results for the six months to 30 June 2025
Thu 07:00
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RNS Number : 7149A Arecor Therapeutics PLC 25 September 2025
Arecor Therapeutics plc
("Arecor", the "Company" or the "Group")
Interim results for the six months to 30 June 2025
Cambridge, UK, 25 September 2025: Arecor Therapeutics plc (AIM: AREC), the
biopharmaceutical company focused on drug development and delivery in diabetes
and other cardiometabolic diseases, reports its unaudited interim results for
the six months ended 30 June 2025.
In-period operational highlights
• Portfolio - Diabetes (AT278 / AT247)
• In vitro modelling in automated insulin delivery (AID) pump systems
with insulin pump device companies for AT247 and AT278 generating positive
results
• Extended IP portfolio in major territories
• Portfolio - Obesity (Oral GLP-1 receptor agonist)
• Positive in-vitro progress
• Data on track to be delivered in 2H 2025 to inform next development
steps
• Platform technology, Arestat®
• Three new formulation development collaborations signed with total
pre-license revenue of over £1 million
• Healthy pipeline of future partnerships and licensing opportunities
• Expanded IP protection in major territories
• Non-core operations
• Sale of inventory and rights to non-Ogluo Tetris products for £0.5m,
in May 2025, with orderly cessation of Tetris by end 2025
Post period-end
• Positive FDA feedback on Phase 2 clinical study design for
ultra-concentrated and ultra-rapid acting insulin, AT278, in combination with
an AID system
• Co-development deal signed with US insulin pump device company, Sequel
Med Tech, LLC ("Sequel") for Phase 2-enabling activities for AT278. Work
already commenced - see separate announcement HERE
(https://arecor.com/investor-centre/regulatory-news/) .
• Sale of royalty and technology access fee streams for up to $11
million via royalty financing agreement with Ligand Pharmaceuticals Inc
("Ligand"); Arecor to receive $7 million upfront - see separate announcement
HERE (https://arecor.com/investor-centre/regulatory-news/) .
• Extends cash runway to 1H 2027
• Established new Scientific Advisory Board of world leading experts
in oral drug delivery
Financial highlights (unaudited)
• Revenue £2.0 million (1H 2024: £2.0 million)
• R&D costs of £1.3 million (1H 2024 re-stated: £1.7 million)
• Gain on disposal of non-Ogluo Tetris Pharma products of £0.4
million
• Loss after tax of £2.5 million (1H 2024: Loss £4.6 million)
• Cash, cash equivalents and short-term investments of £1.9 million
at 30 June 2025 (at 30 June 2024: £2.5 million)
Sarah Howell, Chief Executive Officer of Arecor, commented:
"Our strategic focus for 2025 onwards is two-fold: the development and
commercialisation of AT278 in combination with the next generation AID
systems, alongside the potentially high value field of oral peptide delivery,
starting with GLP-1 in obesity. Much has been achieved in the first six months
in refocusing the business to reflect this strategy, prioritising our
development programmes, ceasing non-core operations and preserving cash.
"During 1H 2025, we advanced partner discussions around both AT278 and our
financial position, culminating in the two partnership agreements announced
today. The co-development agreement with Sequel, our US pump partner, will
accelerate AT278's progress towards a pivotal Phase 2 clinical study. The
royalty financing agreement with Ligand enables us to immediately co-fund
trial-enabling development activities for the AT278 programme, as well as
strengthening the balance sheet with a cash runway into 1H 2027.
"We enter 2H 2025 from a position of strength as we prepare AT278 for Phase 2
studies in 2026 and continue to drive research into our oral peptide delivery
platform."
-Ends-
Analyst conference call
Dr Sarah Howell, Chief Executive Officer, and David Ellam, Chief Financial
Officer, will host a webcast for analysts and institutional investors at 3pm
UK time on Thursday 25 September 2025. To register, please contact
arecor@vigoconsulting.com (mailto:arecor@vigoconsulting.com) . A copy of the
interim results presentation will be released after the meeting on the Company
website at www.arecor.com (http://www.arecor.com) .
Enquiries
Arecor Therapeutics plc +44 (0) 1223 426060
Dr Sarah Howell, CEO info@arecor.com (mailto:info@arecor.com)
David Ellam, CFO
Singer Capital Markets Advisory LLP (NOMAD and Broker) +44 (0) 20 7496 3000
Phil Davies/Sam Butcher
Vigo Consulting +44 20 7390 0230
Melanie Toyne Sewell, Rozi Morris arecor@vigoconsulting.com (mailto:arecor@vigoconsulting.com)
Notes to Editors
About Arecor
Arecor Therapeutics plc is a clinical stage biopharmaceutical company focused
on drug development and delivery in diabetes and other cardiometabolic
diseases. The Company is applying its proprietary technology platform,
Arestat®, to develop a portfolio of proprietary products, as well as working
with leading pharmaceutical and biotechnology companies to deliver enhanced
therapeutic products. Its lead product is AT278, the only ultra-concentrated
(500U/mL) ultra-rapid acting insulin. Arecor is also developing a novel oral
delivery platform for peptides (e.g. GLP-1 receptor agonists) targeting the
obesity and diabetes markets. The Company is listed on AIM (AIM: AREC) and is
based in Cambridge, UK. For further details please see www.arecor.com
(http://www.arecor.com)
Arecor® and Arestat® are registered trademarks of Arecor Limited.
Business Review
Introduction
Arecor's strategic focus is on drug development and delivery in diabetes and
other cardiometabolic diseases, with the aim of creating significant benefit
for people living with these conditions, as well as building value for
shareholders. The Company is progressing two proprietary development
portfolios - one in diabetes and one for the oral delivery of peptides,
underpinned by its proprietary Arestat® technology platform.
This interim report provides an update on the two portfolios, including the
recent events post period-end related to a co-development agreement and
non-dilutive financing which has been raised to accelerate the development of
AT278 and strengthen the Company's position for future partnering discussions.
Diabetes development portfolio
Arecor's lead asset, AT278 is the only ultra-concentrated and ultra-rapid
acting insulin in development and is best-in-class. AT278 has the potential to
enable and catalyse the next innovation leap in AID (automated insulin
delivery) systems. The ultimate aim would be the creation of a next
generation, longer wear miniaturised AID system to meet a fast growing and
unmet patient demand, simplifying care and improving outcomes for people
living with diabetes (PwD).
Arecor received positive FDA feedback on the Phase 2 clinical study design for
AT278 in combination with an AID system, which is a major achievement for
Arecor and a significant step towards a successful Phase 2 study. Full
details HERE
(https://otp.tools.investis.com/clients/uk/arecor_therapeutics_plc/rns/regulatory-story.aspx?cid=2671&newsid=1983515)
.
Arecor's strategic priority has been to pursue high-value R&D
opportunities that have the potential to generate significant value for
shareholders. Near term, management believed that to achieve the best future
value for AT278, the Company needed to partner with an insulin pump innovator
to co-develop AT278 in a next generation AID system. Therefore, post the
period end in September 2025, Arecor was pleased to sign a co-development
agreement with Sequel Med Tech LLC ("Sequel"), a US insulin pump device
company developing state-of-the-art insulin delivery technologies, to combine
AT278 (500U/mL) with Sequel's twiist(TM) AID system.
Under the terms of this Agreement both companies have committed up to $1.3m
each to accelerate and fund all Phase 2 trial enabling development work. Full
details of the agreement are in today's announcement HERE
(https://arecor.com/investor-centre/regulatory-news/) .
The development work has commenced and is expected to be completed during 1H
2026, culminating in the filing of an IND (Investigational New Drug)
application. If approved, the programme would be ready to enter a pivotal
Phase 2 clinical study during 2H 2026.
Longer term, both companies have confirmed their strategic intent to enter
into a broader, co-development and commercialisation partnership, to further
develop and commercialise AT278 in a next-generational AID system, serving a
key unmet patient need in a high value market.
Oral Delivery of Peptides
The second pillar of Arecor's strategy is to develop a platform for the oral
delivery of peptides, an increasingly important class of therapeutics in the
treatment of acute and chronic conditions. The global peptide therapeutics
market is projected to reach more than $100 billion by 2034 growing at a CAGR
of 10.8%(1), driven by peptide therapeutics' strong efficacy and selectivity,
the rise of endocrine and metabolic diseases, and technological advancements
in the field.
A class of peptides called GLP-1 receptor agonists have become especially well
known in the treatment of diabetes and obesity, but at present the majority of
these drugs are available only as injectables. There is significant interest
from the pharmaceutical industry to find the next generation of these GLP-1
therapeutics in oral form. This would not only lower the cost of development
for the pharma companies but more importantly, would improve patient
accessibility, compliance and overall outcomes.
Arecor has deep expertise in peptide chemistry and the formulation and product
development know-how to create a novel proprietary technology platform for the
oral delivery of peptides. The first programme is the development of an oral
GLP-1 receptor agonist with improved bioavailability compared to the only
current marketed oral GLP-1 product, Rybelsus®, whose bioavailability is very
low, at less than 1%.
During 1H 2025, progress has continued. Promising in vitro data has already
been generated and a series of in vivo studies are now underway looking at
pharmacokinetic data which will inform the best route to improve
bioavailability. Data will be available during 2H 2025, which will define the
next steps in its development.
If oral bioavailability can be enhanced, it would clearly be of significant
interest and value to potential partners, not only evidenced from recent
M&A activity where substantial multiples have been paid for relatively
early-stage programmes, but also from the Company's active engagement with
leading pharmaceutical companies. Arecor has also appointed a Scientific
Advisory Board of internationally recognised experts in the fields of oral
drug delivery and peptide therapeutics, specifically to support its oral
peptide strategy.
(1) Future Market Insights: Global Peptide Therapeutics Market to Skyrocket:
Estimated
(https://www.globenewswire.com/news-release/2024/12/26/3001949/0/en/Global-Peptide-Therapeutics-Market-to-Skyrocket-Estimated-Growth-at-a-CAGR-of-10-8-to-Reach-USD-117-4-Billion-by-2034-FMI.html)
Partnership revenues
A robust portfolio of revenue-generating partnered programmes underscores the
strength of Arecor's Arestat® technology platform and its value to partners
in the development of enhanced formulations of their proprietary products.
Arecor signed three further Arestat® formulation development collaborations
with a total pre-license revenue of over £1 million. In March 2025, the
Company announced the first two new formulation development collaborations:
one with an unnamed clinical-stage biopharmaceutical company developing
peptide therapies, the other with a major global pharmaceutical partner.
These were followed in May 2025 by the announcement of a formulation
development collaboration with Skye Bioscience [Nasdaq: SKYE], a
clinical-stage biotechnology company focused on obesity and other metabolic
health disorders. The partnership aims to develop a novel, higher
concentration formulation of Skye's CB1 inhibitor, nimacimab, using Arecor's
proprietary formulation technology platform, Arestat®. Together these three
collaborations provide significant upside potential from future licensing
opportunities.
Royalty Financing Agreement
The Board's ongoing strategy is to ensure sufficient working capital and a
strong balance sheet to accelerate R&D and achieving transformational
value events including partnering. The Board has therefore sought sources of
non-dilutive funding. As detailed in the separate announcement today (see HERE
(https://arecor.com/investor-centre/regulatory-news/) ), Arecor has sold the
global royalty rights related to AT220, an Arestat®-enhanced biosimilar
product marketed by a global pharmaceutical company, and all potential
milestone and technology access fees related to AT292 (licensed to Inhibrx,
now Sanofi's Efdoralprin alfa) (the "Royalty Financing Agreement") to Ligand.
Total consideration from the deal is up to $11.0 million (c.£8.2 million)
which comprises a $7.0 million upfront cash payment and an additional $4.0
million payable upon achievement of certain commercial milestones related to
AT220 and AT292, of which $1.0 million is expected to be received during 2026.
This funding immediately supports the acceleration of the AT278-AID system
co-development partnership programme and strengthens the balance sheet.
Intellectual property portfolio
A robust intellectual property portfolio is key to Arecor's strategy. The
Company has a comprehensive global patent portfolio of >100 granted patents
across major territories protecting both the Arestat® technology platform as
well as the enhanced versions of therapeutic medicines developed leveraging
Arestat®. During the first half of 2025, the portfolio was bolstered with the
addition of seven patents granted in US, Europe, Canada and South Korea,
including patents that strengthen the protection of Arecor's proprietary
diabetes portfolio.
Tetris Pharma
In January 2025, Arecor announced
(https://otp.tools.investis.com/clients/uk/arecor_therapeutics_plc/rns/regulatory-story.aspx?cid=2671&newsid=1899705)
that it would be managing the orderly cessation of activities at Tetris Pharma
and the return of Ogluo® rights to Xeris BioPharma Holdings Inc (Nasdaq:
XERS). In May 2025, rights to certain non-Ogluo® products were sold to Aspire
Pharma Limited for a cash payment of £0.5 million in return for the UK
distribution rights to the products and the transfer of the existing
inventory.
As previously indicated, it is expected that Tetris Pharma will generate a
positive cashflow in 2025, and that the Selling, General and Administrative
expenses will significantly decrease during 2025 compared to 2024. Tetris
will cease sales of Ogluo by 30 September 2025, at which stage the Marketing
Authorisation will be returned to Xeris.
Board and Scientific Advisory Board
In June 2025, Dr Alan Smith, who served as a Non-Executive Director of Arecor
for more than 17 years, retired from the Board. Throughout his time at Arecor,
Dr Smith provided invaluable scientific and strategic guidance as the Company
has evolved from its early stages to a clinical-stage company, and the Board
is grateful for his long service and dedication.
Post period-end, in July 2025, Arecor formed a new Scientific Advisory Board
of internationally recognised experts in the fields of oral drug delivery and
peptide therapeutics. Members include David Brayden, PhD, a Full Professor of
Advanced Drug Delivery at the School of Veterinary Medicine, University
College Dublin (UCD), a Senior Fellow of the UCD Conway Institute, Randy
Mrsny, PhD, Professor of Drug Delivery at the University of Bath, and
Christopher Porter, PhD, Director of the Monash Institute of Pharmaceutical
Sciences (MIPS) at Monash University. These specialist advisors will provide
key technical and strategic guidance as Arecor tackles the challenge of
achieving effective oral delivery of peptides, with the goal of unlocking the
potential of oral delivery for this increasingly important class of
therapeutics.
Financials
The consolidated financial results for the six months ended 30 June 2025
reflect the performance of Arecor Therapeutics plc and its trading
subsidiaries: Arecor Limited and Tetris Pharma Ltd.
Total revenue for the six months to 30 June 2025 was £2.0 million (1H 2024:
£2.0 million). Partner revenue increased by £0.4 million to £1.0 million
(1H 2024: £0.6 million) and product revenue decreased by £0.4 million to
£1.0 million (1H 2024: £1.4 million) as Tetris activities have slowed.
Other operating income for the period was £0.1 million (1H 2024: £0.04
million) being income of £0.1 million under the R&D Expenditure Scheme
"RDEC."
Investment in R&D was £1.3 million (1H 2024 restated: £1.7 million),
reflecting a reduced R&D spend on clinical development in our proprietary
diabetes portfolio.
Sales, General and Administrative costs were £2.1 million (1H 2024 restated:
£3.4 million), the decrease reflecting the cessation of activities at Tetris
Pharma during 2025.
Gain on disposal of non-Ogluo Tetris Pharma products of £0.4 million.
The total loss after tax for the six-month period was £2.5 million (1H 2024:
loss £4.6 million).
The Group ended 1H 2025 with cash, cash equivalents and short-term investments
of £1.9 million (1H 2024: £2.5 million).
Post period-end, the Company will receive a royalty monetisation upfront of $7
million (£5.2 million) from Ligand, extending the cash runway into 1H 2027.
As part of the transaction, Ligand will also receive warrants over 1,002,739
ordinary shares of 1 pence each in the Company ("Ordinary Shares") which will
be fully paid and will rank pari passu in all respects with the existing
Ordinary Shares of the Company. The exercise price for the warrants will be
67.39 pence, being the 30-day volume-weighted average price at the date of the
agreement. The warrants are exercisable over 10 years.
Summary and outlook
At the start of 2025, the Board set a clear strategic direction for Arecor to
focus on the opportunities which would present most significant valuation
creation. These opportunities included the proprietary diabetes portfolio,
focusing on lead clinical programme, AT278, and the oral peptide delivery
platform driven by growing market demand for alternatives to injectables. As
part of this strategy, the underlying business has been realigned and
financial position strengthened. This is being achieved through the orderly
cessation of the non-core business, Tetris Pharma, and securing non-dilutive
financing, through monetising future milestones and royalties of two of the
Company's Arestat® license partnerships.
2H 2025 has begun with great optimism, driven firstly by the positive FDA
feedback for AT278 and then by the signing of a Phase 2-enabling
co-development agreement for AT278 with Sequel, showing strategic intent to
enter into a wider co-development deal for the full Phase 2 study and
beyond. The royalty financing agreement with Ligand not only funds Arecor's
portion of the co-development deal, but also strengthens the balance sheet
with a cash runway into 1H 2027, providing a better financial position for
future potential partnering discussions.
Dr Sarah Howell
Chief Executive Officer
Consolidated income statement
For the six-month period to 30 June 2025
Notes Period ended 30 June 2025 Period ended 30 June 2024 (Re-stated) Year ended 31 December 2024
Unaudited Unaudited Audited
£000 £000 £000
Revenue 6 2,003 1,995 5,053
Cost of Sales (1,675) (1,727) (3,510)
Gross Profit 328 268 1,543
Other operating income 93 39 267
Research and Development expenses (1,279) (1,725) (3,041)
Sales, General & Administrative expenses (2) 5 (2,112) (3,416) (9,466)
Operating loss (2,970) (4,834) (10,697)
Gain on disposal (3) 5 409 - -
Finance income 27 55 101
Finance expense (8) (12) (22)
Loss before tax (2,542) (4,791) (10,618)
Taxation credit 34 151 382
Loss for the period (2,508) (4,640) (10,236)
Basic and diluted loss per share (£) 8 (0.07) (0.15) (0.31)
2 Included within Sales, General & Administrative expenses are exceptional
items to the sum of £0 (1H 2024: £0, YE24: £(3,288)k), see note 5 for
further details.
3 Included within Gain on disposal are exceptional items to the sum of £399k
(1H 2024: £0, YE24: £0), see note 5 for further details.
Consolidated statement of financial position
At 30 June 2025
Notes 30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
£000 £000 £000
Assets
Non-current assets
Intangible Assets 24 1,743 33
Goodwill - 1,484 -
Property, Plant and Equipment 396 694 400
Other receivables 58 69 55
Total non-current assets 478 3,990 488
Current assets
Trade and other receivables 2,372 2,753 3,845
Current tax receivable 402 632 654
Cash and cash equivalents 1,867 2,529 3,239
Short term investments 19 16 18
Inventory 112 446 478
Total current assets 4,772 6,376 8,234
Current liabilities
Trade and other payables (2,169) (4,551) (3,069)
Lease liabilities (114) (111) (121)
Provisions (43) (1) (66)
Total current liabilities (2,326) (4,663) (3,256)
Non-current liabilities
Lease liabilities (59) (169) (111)
Provisions (9) (19) (6)
Deferred tax - (437) -
Total non-current liabilities (68) (625) (117)
Net Assets 2,856 5,078 5,349
Equity attributable to equity holders of the Group
Share capital 9 378 306 378
Share premium account 34,684 28,976 34,684
Share-based payment reserve 1,816 1,638 1,676
Other reserves 11,455 11,455 11,455
Merger relief reserve 2,014 2,014 2,014
Foreign exchange reserve (25) 51 100
Retained losses (47,466) (39,362) (44,958)
Equity attributable to equity holders of the Group 2,856 5,078 5,349
Consolidated statement of changes in equity
For the six-month period to 30 June 2025
Other reserves Merger relief reserve Share-based payment reserve Foreign exchange reserve Retained
losses
Share capital Share premium Total
equity
£000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 January 2024 306 28,976 11,455 2,014 1,518 (20) (34,722) 9,527
Loss for the period - - - - - - (4,640) (4,640)
Foreign exchange movements - - - - - 71 - 71
Transactions with owners:
Share-based compensation - - - - 120 - - 120
Total transactions with owners - - - - 120 - - 120
Balance at 30 June 2024 (Unaudited) 306 28,976 11,455 2,014 1,638 51 (39,362) 5,078
For the period ended 31 December 2024
Balance at 1 July 2024 306 28,976 11,455 2,014 1,638 51 (39,362) 5,078
Loss for the period - - - - - - (5,596) (5,596)
Foreign exchange movements - - - - - 49 - 49
Transactions with owners
Share-based compensation - - - - 38 - - 38
Issue of shares 72 6,345 - - - - - 6,417
Share issue expenses - (637) - - - - - (637)
Total transactions with owners 72 5,708 - - 38 - - 5,818
Balance at 378 34,684 11,455 2,014 1,676 100 (44,958) 5,349
31 December 2024 (audited)
Consolidated statement of changes in equity (continued)
For the six-month period to 30 June 2025
Other reserves Merger relief reserve Share-based payment reserve Foreign exchange reserve Retained
losses
Share capital Share premium Total
equity
£000 £000 £000 £000 £000 £000 £000 £000
For the period ended 30 June 2025
Balance at 1 January 2025 378 34,684 11,455 2,014 1,676 100 (44,958) 5,349
Loss for the period - - - - - - (2,508) (2,508)
Foreign Exchange movements - - - - - (124) - (124)
Transactions with owners:
Share-based compensation - - - - 140 - - 140
Total transactions with owners - - - - 140 - - 140
Balance at 30 June 2025 (unaudited) 378 34,684 11,455 2,014 1,816 (24) (47,466) 2,856
Consolidated statement of cash flows
For the six-month period to 30 June 2025
Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
Unaudited Unaudited Audited
£000 £000 £000
Cash flow from operating activities
Loss before tax (2,542) (4,791) (10,618)
Finance income (27) (55) (101)
Finance costs 8 12 22
Gain on disposal (409) - -
Share-based compensation 140 120 158
Depreciation 104 157 307
Amortisation 9 69 139
Impairment of property, plant, and equipment - - 163
Impairment of intangible assets - - 3,125
(2,717) (4,488) (6,805)
Changes in working capital
Decrease in inventory 366 325 293
(Increase) / decrease in trade and other receivables 1,470 444 (634)
(Decrease) in trade and other payables (900) (352) (1,834)
(Decrease) in provisions (20) (137) (85)
(Increase) / decrease in tax receivable 252 - (197)
1,168 280 (2,457)
Tax Received 104 - -
RDEC Cash Received 275 - -
Net cash used in operating activities (1,170) (4,208) (9,262)
Cash flow from investing activities
Purchase of property, plant & equipment (98) (15) (23)
Disposal proceeds 110 - -
Movement in short-term investments (1) 1,643 1,641
Interest received 27 55 101
Net cash generated from investing activities 38 1,683 1,719
Cash flow from financing activities
Issue of ordinary shares - - 6,417
Share issue costs - - (637)
Repayment of loans by Directors - 10 9
Capital payments on lease liabilities (60) (63) (119)
Interest paid on lease liabilities (8) (12) (22)
Net cash (used in) / generated by financing activities (68) (65) 5,648
Net (decrease) / increase in cash and cash equivalents (1,200) (2,590) (1,895)
Exchange (losses) / gains on cash and cash equivalents (172) 26 41
Cash and cash equivalents at beginning of period or financial year 3,239 5,093 5,093
Cash and cash equivalents at end of period or financial year 1,867 2,529 3,239
Notes to the Interim Financial Statements
For the six-month period to 30 June 2025
1. BASIS OF PREPARATION
The financial statements for the period ended 30 June 2025 incorporate the
results of Arecor Therapeutics plc ("Arecor" or the "Company") and its trading
subsidiaries. The consolidated interim financial statements for the period to
30 June 2025 are unaudited and were approved by the board of directors on 24
September 2025.
The consolidated interim financial statements have been prepared in accordance
with the AIM rules for Companies and should be read in conjunction with the
Group's Annual Report for the Year ended 31 December 2024. The financial
information has been prepared in accordance with the IFRS standards.
The financial information contained in these interim financial statements does
not constitute statutory accounts as defined in section 434 of the Companies
Act 2006. These interim financial statements do not include all the
information and disclosures required in the annual financial statements. The
financial information for the six months ended 30 June 2025 and 30 June 2024
is unaudited.
Financial statements for year ended 31 December 2024 have been filed with the
Registrar of Companies for Arecor Therapeutics plc (Company registration
number 13331147). The audit report for this period, previously filed, was
unmodified.
2. PRINCIPAL ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with the
accounting policies set out in the audited financial statements for the period
ended 31 December 2024. New standards, amendments and interpretations to UK
adopted IAS applicable from 1 January 2025 are not expected to have a material
impact on the financial statements.
a) Going Concern
Following a successful monetisation event post period, the Group's cash runway
has been extended beyond 12 months from the date of approval of these
unaudited interim financial statements.
The Directors have reviewed the Group's current cash and short-term
investments, along with forecast receivables, to support planned operating
expenditure and investment in research and development. The review also
considered downside sensitivity scenarios, including the impact of reduced
receivables and the implementation of mitigating actions.
Based on this analysis, the Directors have a reasonable expectation that the
Group has adequate financial resources to continue in operational existence
for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing these
unaudited interim financial statements.
3. CHANGE IN ACCOUNTING POLICY AS RESTATEMENT OF PRIOR YEAR INTERIM
COMPARATIVE
Per IAS1, the Income Statement can be presented using either the 'nature of
expense' method or the 'function of expense' method. These consolidated
financial statements use the 'function of expense' method: however, this
requires the separation of cost of sales from other expenses within the Income
Statement. This separation was not shown in the prior period interim financial
statements and therefore the restatement of the prior year comparatives is a
material prior-period error.
The restated Income Statement for the period ended June 2024 discloses a cost
of sales of £1,727k (prior: £nil). The sales, general and administrative
expenses line is restated to £3,416k (prior: £4,781k) and the research and
development expenses line is restated to £1,725k (prior: £2,087k). There was
no impact to the loss before tax or the loss after tax, and no impact to the
balance sheet brought forward.
Cost of sales includes all costs directly attributable to the sale of products
(purchased finished goods, raw materials, packaging, and freight). They also
include staff costs directly attributable to partnered formulation development
revenue.
4. CESSATION OF OPERATIONS OF SUBSIDIARY
Following a strategic review of Tetris Pharma, the Group's management
announced on 10 January 2025 its intention to cease operations within its
subsidiary Tetris Pharma. This decision was taken in conjunction with a mutual
agreement with Xeris BioPharma Holdings, Inc. to return the Group's rights to
Ogluo® as part of the Group's strategic focus on those areas which best
leverage its platform and resources to deliver transformational value
opportunities.
Tetris Pharma continued to trade during the half-year period ended 30 June
2025; however, operations are expected to cease in full before the financial
year ending 31 December 2025. The wind-down process includes the planned
closure of operational activities, fulfilment of contractual obligations, and
decommissioning of infrastructure. The Group expects to incur certain
closure-related costs in the second half of the year as part of the wind-down
process, which will be recognised as incurred.
As at 30 June 2025, the subsidiary remains fully consolidated in the Group's
financial statements.
The Group expects to present the results of Tetris Pharma as a discontinued
operation in the consolidated financial statements for the year ending 31
December 2025, in accordance with IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations, subject to the completion of the wind-down process
and final assessment of the relevant criteria.
5. EXCEPTIONAL ITEM
During 1H 2025, the Group sold a previously impaired intangible asset, a
revenue-generating licence held by Tetris Pharma Limited, for proceeds of
£399k.
At 31 December 2024, the licence was fully impaired to nil in accordance with
IAS 36 - Impairment of Assets, reflecting its recoverable amount at that date.
The gain on disposal, calculated as proceeds less carrying value, is
recognised in the interim income statement and presented in the footnotes as
an exceptional item due to its non-recurring and unusual nature relative to
the Group's ongoing operations.
6. REVENUE AND OPERATING SEGMENTS
The geographic analysis of the Group's revenue is as follows:
Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
£000 £000 £000
UK 895 1,267 2,884
Switzerland 555 203 618
Germany 169 95 598
Norway 13 - -
USA 241 185 466
Denmark 130 - -
Netherlands - 191 433
Italy - 54 54
2,003 1,995 5,053
The geographic analysis of the Group's non-current assets is as follows:
Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
£000 £000 £000
UK 478 3,868 488
Netherlands - 122 -
478 3,990 488
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision makers. Information
reported includes revenue by project, expenditure by type and department,
cashflows and EBITDA for the Group.
The Board of Directors has been identified as the chief operating decision
makers, who are responsible for allocating resources, assessing the
performance of the operating segment, and making strategic decisions.
Accordingly, the Directors consider there to be a single operating segment.
Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
£000 £000 £000
Sale of Pharmaceuticals 985 1,409 3,410
Revenue recognised from contracts with partners - at a point in time - - 125
Revenue recognised from contracts with partners - over time 1,018 586 1,518
Total revenue 2,003 1,995 5,053
Pharmaceutical sales are limited to a small number of pre-wholesalers in each
territory who then sell on to a larger number of wholesalers. With respect to
partner revenue, three customers each contributed more than 10% of the
partnership revenues respectively £555,521 (55%), £130,333 (13%) and
£124,083 (12%)
(1H 2024: £202,466 (35%), £116,133 (20%) and £91,416 (16%).
7. SHARE BASED COMPENSATION
The Company operates an All-Employee Share Option Plan (AESOP), and grants
share options to eligible employees. The options vest over time.
The Company's Long Term Incentive Plan (LTIP) is principally used to grant
options to Executive directors and senior management. The LTIP options vest
after three years subject to meeting performance criteria as defined in the
option agreement. These can be a combination of both operational objectives
and share price performance compared to a benchmark. These performance
conditions are approved by the Board on each occasion prior to the grant of
the options. Ordinary shares acquired on exercise of the LTIP options are
subject to a holding period of a minimum of one year from the date of vesting.
The movement in share options in the period was as follows:
Number of Options
Balance at 1 January 2024 1,658,333
AESOP options granted 382,250
LTIP options granted 540,000
AESOP options exercised -
Options lapsed (165,333)
Balance at 30 June 2024 2,415,250
AESOP options granted -
LTIP options granted 280,000
AESOP options exercised -
Options lapsed (423,250)
Balance at 31 December 2024 2,272,000
AESOP options granted 279,600
LTIP options granted 485,000
AESOP options exercised (84,000)
Options lapsed (160,000)
Balance at 30 June 2025 2,792,600
Shared Based Payment charges to the Consolidated income statement £000
Period to June 2025 140
Period to June 2024 120
Year to December 2024 158
8. EARNINGS PER SHARE
Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders by the
weighted average number of ordinary shares outstanding during the period.
Given the Company's reported loss for the periods and financial year, share
options were not taken into account when determining the weighted average
number of ordinary shares in issue during the year as they would be
anti-dilutive, and therefore the basic and diluted loss per share are the
same.
30 June 30 June 31 December
2025 2024 2024
£ £ £
Loss per share from continuing operations (0.07) (0.15) (0.31)
The loss and weighted average number of ordinary shares used in the
calculation of basic loss per share are as follows:
30 June 30 June 31 December
2025 2024 2024
£000 £000 £000
Loss used in the calculation of total basic and diluted loss per share (2,508) (4,640) (10,236)
30 June 30 June 31 December
2025 2024 2024
Number of shares Number Number Number
Weighted average number of ordinary shares for the purposes of basic and 37,756,601 30,626,986 33,439,766
diluted loss per share
9. EQUITY
Share Capital
At 30 June 2025 At 30 June 2024 At 31 December 2024
Number Number Number
Allotted, called up and fully paid
Ordinary shares of £0.01 37,756,601 30,626,986 37,756,601
Total share capital 37,756,601 30,626,986 37,756,601
At 30 June 2025 At 30 June 2024 At 31 December 2024
£'000 £'000 £'000
Allotted, called up and fully paid
Ordinary shares of £0.01 378 306 378
Total share capital 378 306 378
10. EVENTS AFTER THE BALANCE SHEET DATE
On 25 September 2025, the Company announced that it had 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™ AID system. Under the terms of the
agreement, Arecor and Sequel will co-fund all trial-enabling development
activities for the AT278-AID system development programme to achieve Phase 2
trial-ready status. Each company will commit up to $1.3 million to accelerate
and fund all Phase 2 clinical trial-enabling development work.
On 25 September 2025, the Company announced that it had signed a royalty
financing agreement with Ligand Pharmaceuticals Inc. (NASDAQ: LGND) ("Ligand")
which will raise non-dilutive capital of up to $11 million (£8.2 million).
This includes a $7.0 million upfront cash payment and an additional $4.0.
million, which will be payable upon achievement of certain commercial
milestones related to AT220 and AT292, of which $1.0 million is expected to be
received during 2026.
As part of the transaction, Ligand will receive warrants over 1,002,739
ordinary shares of 1 pence each in the Company ("Ordinary Shares") which will
be fully paid and will rank pari passu in all respects with the existing
Ordinary Shares of the Company. The exercise price for the warrants will be
67.39 pence, being the 30-day volume-weighted average price at the date of the
agreement. The warrants are exercisable over 10 years.
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