Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Arecor Therapeutics PLC (LSE:AREC, Financial) reported an 11% increase in revenues to GBP5.1 million, driven by Tetris products and 80 to 20 royalty income.
- The company achieved fantastic phase 1 clinical results for AT278, demonstrating superiority in type 2 diabetics with high BMI against leading insulins.
- Arecor is making significant progress towards strategic partnerships for the development and commercialization of AT278, particularly in insulin pump settings.
- The company has a growing portfolio of partner programs, with three products under license and significant progress in intellectual property, including 17 key patents granted.
- Arecor's oral delivery platform for peptides, particularly GLP-1, shows promise with initial positive results and potential for significant commercial opportunities.
Negative Points
- R&D expenses decreased by GBP2.4 million to GBP3 million, indicating potential reductions in clinical study investments.
- SG&A expenses remained flat at GBP6.2 million, with a significant portion attributed to Tetris expenses, which are expected to cease in 2026.
- The company reported exceptional items related to the impairment of assets concerning Tetris, impacting financial performance.
- Despite progress, the commercialization of AT278 and the oral peptide platform remains in early stages, with significant development and regulatory hurdles ahead.
- The market for oral peptide delivery is highly competitive, with only two marketed peptides currently available, posing challenges for Arecor's differentiation and market entry.
Q & A Highlights
Q: How does Arecor's Arestat platform compare to other oral delivery technologies, and what differentiates it?
A: Sarah Howell, CEO, explained that Arecor's approach involves using novel combinations of lipids and stabilized peptides to enhance bioavailability. This method leverages natural processes for peptide delivery, differentiating it from existing permeation enhancers. The goal is to optimize and enhance bioavailability through this innovative approach.
Q: What is the potential market for AT278, and how are discussions with pump companies progressing?
A: Sarah Howell highlighted that AT278 is the only insulin meeting the profile needed for next-generation insulin pumps. Discussions with pump companies are ongoing, with options for exclusive or co-exclusive deals. The focus is on ensuring AT278 is available to the broadest patient population and advancing its development swiftly.
Q: When might Arecor's oral peptide platform be marketed to potential partners?
A: Sarah Howell indicated that partnerships could be pursued early, even based on pre-clinical data, as demonstrated by recent industry deals. The timing will depend on product-specific factors and the potential to maximize platform value.
Q: How is the pathway to a pivotal Phase 2 study for AT278 being guided?
A: The pathway is informed by insights from ex-FDA reviewers and discussions with insulin pump companies. The aim is to efficiently generate necessary data for optimal product labeling while advancing towards market readiness.
Q: What is the focus of Arecor's R&D efforts, and how does it align with market needs?
A: Arecor is concentrating on areas with significant unmet patient needs, particularly in diabetes and obesity. The company is leveraging its expertise and partnerships to develop innovative solutions, such as AT278 and the oral peptide platform, to address these markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
