Highlights

  • Arecor maintains focus on diabetes and oral peptide delivery in high-growth, multi-billion-pound markets.
  • Co-development agreement signed with Sequel Med Tech for AT278 insulin with an Automated Insulin Delivery (AID) system.
  • Non-dilutive royalty financing with Ligand Pharmaceuticals raised USD 7 million on signing.

Arecor Therapeutics plc (LSE:AREC), the biopharmaceutical company focused on diabetes and cardiometabolic therapies, released an unaudited business update for the 12 months ending 31 December 2025. The report outlines developments across its core product areas, financial performance, and strategic collaborations, while the audited results are expected in April 2026.

Arecor’s share price reached GBX 75.20 on 6 February 2026, up 36.73% over the past year. Broker Liberum has issued a “buy” rating with a target price of GBX 251.

AT278 Development Gains Momentum

Arecor continues to make progress with AT278, its ultra-concentrated, ultra-rapid-acting insulin. In September 2025, the company held a Type C meeting with the FDA to discuss a first-of-its-kind Phase 2 study combining AT278 with an Automated Insulin Delivery system for patients with type 1 and type 2 diabetes requiring high daily insulin doses. Feedback from the FDA supports the trial design and marks a significant step toward the Phase 2 study.

The same month, Arecor partnered with Sequel Med Tech, committing up to USD 1.3 million each to prepare for the pivotal trial. The twiist™ AID system is now launched in the US, and discussions for a wider co-development and commercialisation partnership are ongoing.

Oral Peptide Delivery Programme Expands

The company is advancing its oral peptide delivery platform, aiming to improve bioavailability of complex peptides. Initial focus is on developing oral GLP-1 (semaglutide) formulations with enhanced absorption compared to current therapies, such as Rybelsus®, which has less than 1% bioavailability.

Non-clinical pharmacokinetic studies are continuing in 2026 to determine optimal delivery strategies. In Q4 2025, Arecor filed a European patent application for novel compositions designed to enhance oral peptide bioavailability. Success in this area could open opportunities for oral delivery of a wide range of peptides.

Financial Overview

Revenue for the year, including discontinued operations, was £3.1 million, down from £5.1 million in 2024, largely due to the cessation of Tetris Pharma operations. Revenue from continuing operations increased slightly to £1.7 million (2024: £1.6 million). Cash and cash equivalents rose to £6.1 million (2024: £3.2 million), exceeding expectations.

Arecor Therapeutics is progressing on multiple fronts, including its AT278 insulin development, oral peptide platform, and strategic partnerships, while maintaining a strong cash position. The broker upgrade and rising share price underscore investor interest in the company’s growth trajectory as it prepares for pivotal studies and potential commercial expansion.

FAQs

Q1: What is AT278 and why is it significant?
A: AT278 is Arecor’s ultra-concentrated, ultra-rapid-acting insulin designed for use with automated insulin delivery systems. It targets patients with high daily insulin needs and is entering Phase 2 clinical trials following positive FDA feedback.

Q2: How is Arecor advancing its oral peptide delivery platform?
A: The company is developing oral GLP-1 peptides with improved bioavailability. Non-clinical studies are ongoing, and a European patent has been filed for novel compositions to enhance peptide absorption.

Q3: What financial support has Arecor received recently?
A: Arecor signed a non-dilutive royalty financing agreement with Ligand Pharmaceuticals for up to USD 11 million, receiving USD 7 million on signing. Cash reserves reached £6.1 million at year-end, exceeding expectations.