22nd Apr 2025 11:07
(Alliance News) - Arecor Therapeutics PLC on Tuesday reported a wider loss in 2024, despite an increase in revenue, as the company took a series of impairments related to its decision to refocus its efforts on its insulin candidate.
The Cambridgeshire, England-based biopharmaceutical company reported a pretax loss of GBP10.6 million in 2024, widened from GBP8.9 million in 2023. Revenue was GBP5.1 million, up 10% from GBP4.6 million, but general and administrative expenses rose by more than 50% to GBP9.5 million from GBP6.2 million.
The revenue increase was driven by royalties from Arecor's AT220 biosimilar and a licensing deal with Sanofi SA, both of which continue to generate income through Arecor's Arestat drug enhancement platform.
The higher revenue also was thanks to GBP3.4 million in net sales production generated by subsidiary Tetris Pharma Ltd, increasing from GBP2.9 million the previous year.
However, Tetris also was responsible for the GBP3.3 million in impairments to goodwill, intangible assets, and property, plant and equipment that added to general and administrative expenses.
The full impairment of all Tetris assets followed the decision late last year to end all Tetris operations in 2025 and return the rights to Ogluo to Xeris BioPharma Holdings Inc. Ogluo is a ready-to-use glucagon auto-injector pen for severe hypoglycaemia, or low blood sugar.
In announcing the decision to close Tetris back in January, Arecor said the move will allow the company to focus on its "novel ultra-concentrated, ultra-rapid acting" insulin candidate, AT278.
"The positive advancements within our diabetes portfolio support our confidence in the potential of AT278 to generate significant value creation for the company and shareholders," Chief Executive Officer Sarah Howell said on Tuesday. "In addition, on the back of early initial positive in vitro data, we have the opportunity to leverage our expertise to develop a novel technology platform for the oral delivery of peptides - one that could unlock substantial value in a rapidly expanding market."
Arecor shares were up 1.3% to 38.48 pence in London on Tuesday morning. The stock is down 71% over the past 12 months.
By Olivia Mason-Myhill, Alliance News reporter
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