What You Should Know:
– Arecor Therapeutics, a biopharmaceutical company specializing in drug development and delivery, has announced two major strategic achievements: a co-development agreement with Sequel Med Tech and a royalty financing agreement with Ligand Pharmaceuticals Incorporated.
– The dual strategy is intended to accelerate the clinical development of its lead product, AT278, and extend the company’s cash runway without diluting shareholders.
Co-Development: Pairing Precision Pump with Ultra-Rapid Insulin
Arecor and Sequel Med Tech have entered a co-development agreement to combine AT278 (500U/mL) with Sequel’s twiist™ Automated Insulin Delivery (AID) system, which is powered by Tidepool. This partnership addresses a key unmet need in the high-value diabetes market.
Technology Synergy
- AT278: Is positioned as the only ultra-concentrated (500U/mL), ultra-rapid insulin in development. This concentration enables longer wear and miniaturization opportunities for AID systems, even for people with diabetes (PwD) who require high daily doses of insulin.
- twiist™ AID System: Features iiSure™ technology, which uses acoustic sensing to precisely measure each insulin dose and detect occlusions up to nine times faster than other AID systems. This precision is critical when working with highly concentrated insulin.
Development Timeline and Investment
Both companies will commit up to $1.3M to co-fund trial-enabling development activities for the AT278-AID System program. This work, which includes regulatory interactions with the US FDA and manufacturing, is expected to be completed during the first half of 2026. This will culminate in the filing of an Investigational New Drug (IND), positioning the program to enter a pivotal Phase 2 clinical study during the second half of 2026. Arecor estimates the total addressable US insulin revenue market opportunity for AT278 is attractive at approximately $2.9B, with additional upside through commercialization outside the U.S..
$11M Non-Dilutive Funding
Arecor has also signed a royalty financing agreement with Ligand Pharmaceuticals, monetizing specific royalty rights to raise up to $11M (£8.2 million) in non-dilutive capital.
- Upfront Payment: The agreement includes a $7M upfront cash payment.
- Milestone Payments: An additional $4.0 million will be payable upon the achievement of certain commercial milestones related to AT220 and AT292.
