Arecor Therapeutics plc, a leading biopharmaceutical company specialising in diabetes and cardiometabolic disease, has announced two significant agreements designed to accelerate the clinical development of its ultra-concentrated insulin candidate, AT278, and extend its cash runway into the first half of 2027.

Strategic Co-Development with Sequel Med Tech

Arecor has entered into a co-development agreement with Sequel Med Tech, developer of the twiist™ Automated Insulin Delivery (AID) System, powered by Tidepool. The collaboration will pair AT278 (500U/mL), the world’s only ultra-concentrated and ultra-rapid acting insulin in development, with Sequel’s state-of-the-art delivery platform.

  • Both companies will contribute up to $1.3 million each towards development work ahead of a pivotal Phase 2 trial.
  • The programme will include FDA regulatory interactions, clinical trial batch manufacturing, and device compatibility testing, with an IND filing targeted for 1H 2026.
  • Longer term, Arecor and Sequel intend to expand into a full commercialisation partnership, addressing a $2.9 billion US insulin market opportunity, with further upside internationally.

Why it matters: The combination of AT278’s unique insulin profile with Sequel’s precision dosing technology could unlock the next generation of longer-wear and miniaturised AID systems, a major unmet need for people with Type 1 and Type 2 diabetes requiring high daily insulin doses.

Non-Dilutive Financing from Ligand Pharmaceuticals

In a parallel transaction, Arecor has secured up to $11 million (£8.2 million) in non-dilutive capital through the sale of certain royalty and milestone rights to Ligand Pharmaceuticals .

  • Immediate $7 million upfront cash received.
  • Up to $4 million additional milestone payments, including $1 million anticipated in 2026.
  • Ligand receives long-term warrants over 1,002,739 Arecor shares at a strike price of 67.39p.

This financing provides balance sheet strength and ensures uninterrupted progress toward AT278’s Phase 2 trial, while safeguarding shareholder value through a non-dilutive structure.

Leadership Commentary

Sarah Howell, CEO of Arecor, highlighted:

“The Sequel collaboration advances our ambition to unlock AT278’s transformative potential, while the Ligand financing strengthens our financial position and extends our cash runway to 1H 2027 without diluting shareholders.”

Alan Lotvin, CEO of Sequel Med Tech, added:

“Pairing AT278 with the twiist™ AID System has the potential to deliver a truly next-generation diabetes management solution.”

Todd Davis, CEO of Ligand, commented:

“This investment reflects our focus on highly differentiated, de-risked assets with strong commercial potential.”

Market Opportunity and Outlook

Arecor estimates the total addressable US insulin opportunity for AT278 at c.$2.9 billion, driven by:

  • People with diabetes requiring high daily insulin doses who currently lack a suitable pump option.
  • Patients seeking extended-wear AID devices with insulin capacity for 7+ days.

With the co-development agreement and financing in place, Arecor is strategically positioned to deliver shareholder value while advancing therapies that improve the daily lives of millions managing diabetes worldwide