Arecor Therapeutics (AREC) H2 2025 earnings summary

Executive summary

• Lead program AT278 is an ultra-concentrated, ultra-rapid-acting insulin in development for next-generation AID systems, with advanced clinical progress and commercial partnerships targeting diabetes and obesity markets.

• Oral peptide delivery platform aims to improve GLP-1 stabilization and bioavailability, with positive in-vitro data and new IP filed.

• Strategic partnerships with Sequel Med Tech, Eli Lilly, MiniMed, and Ligand Pharmaceuticals support development and commercialization.

• Sale of royalty and technology access fee streams to Ligand raised $11 million, strengthening the balance sheet.

• Expanded IP protection and signed new formulation collaborations for the ArestatⓇ platform.

Financial highlights

• Revenue for FY25 was £1.7 million, up from £1.6 million in FY24, mainly from formulation revenues.

• Other income included a £5 million gain from the sale of royalty rights and a £0.3 million R&D tax credit.

• Operating profit of £0.9 million, compared to a loss of £5.2 million in FY24.

• Year-end cash and short-term investments of £6.1 million, up from £3.2 million in FY24, bolstered by royalty rights sale proceeds.

• Net cash used in operating activities for continued operations was £3.1 million, improved from £5.7 million in FY24.

Outlook and guidance

• Cash runway secured to Q2 2027, supporting core programs, strategic deal-making, and funding for Phase II clinical study.

• Phase II clinical trial for AT278 expected to commence in the second half of 2026, pending partnership finalization and funding.

• Key pharmacokinetic data for oral peptide delivery technology expected in 2026.

• Significant milestones anticipated in 2026, including partnership deals and PK data generation.