Arecor to wind up operations at Tetris Pharma subsidiary
By Josh White
Date: Friday 10 Jan 2025
(Sharecast News) - Arecor Therapeutics announced plans to cease operations within its subsidiary Tetris Pharma during 2025 on Friday, adding that it had mutually agreed with Xeris BioPharma to return the rights to Ogluo - a ready-to-use glucagon auto-injector for severe hypoglycemia.
The AIM-traded firm said the decision followed a strategic review aimed at focusing the company's resources on high-value research and development opportunities.
It said the review concluded that, while Ogluo remained a proven product with significant patient benefits, rising supply chain costs and fixed selling prices in licensed territories had eroded margins, extending the timeline to breakeven.
Additionally, a partner's loss of a key NHS tender significantly reduced revenue projections for non-Ogluo products in 2025.
As a result, the company fully impaired goodwill and intangibles associated with Tetris Pharma, amounting to about £3m in 2024.
Arecor said it intended to redirect resources towards advancing its pipeline, including its ultra-concentrated, ultra-rapid acting insulin candidate, AT278, where co-development partnering discussions were progressing.
The company said it was also prioritising its oral peptide delivery platform, with non-clinical pharmacokinetic studies for an oral GLP-1 receptor agonist product set to start in the first half of the year.
Those efforts were aiming to unlock broader opportunities within the peptide therapeutics field.
"This strategic decision consolidates Arecor's focus on research and development in areas in which our innovative Arestat technology can deliver transformational opportunities," said chief executive officer Sarah Howell.
"These include the progression of our next-generation insulin portfolio and innovation in the field of the oral delivery of peptides."
Howell said the company would also continue to progress its partnered portfolio of Arestat-enabled "superior therapeutics" under its revenue-generating technology-licensing model.
"These present the greatest opportunities for the Group to build significant value and we remain confident in our strategy and excited about the opportunities for Arecor."
At 1410 GMT, shares in Arecor Therapeutics were down 10.18% at 66.47p.
Reporting by Josh White for Sharecast.com.
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