10th Jun 2024 09:54
(Alliance News) - Arecor Therapeutics PLC on Monday said it now expects to require new funding in the third quarter of this year.
Shares in the Essex, England-based biopharmaceutical firm shares fell 26% in response to 117.75 pence each on Monday morning in London. It now has a GBP36.8 million market capitalisation.
Arecor said its working capital requirements have accelerated primarily as a result of the timing of potential pipeline revenue and an increase in costs. The firm now expects funding to be required in the third quarter of 2024.
The company is loss-making, having reported a pretax loss of GBP8.9 million in 2023, narrowed from GBP10.4 million in 2022, on GBP5.7 million in revenue, up from GBP3.7 million.
Revenue for 2024 remains in line with consensus market expectations, Arecor said, but this remains dependent on revenue growth across all areas of business, including new potential licensing deals.
Chief Executive Officer Sarah Howell said: "We believe the growth potential for the company remains compelling with a number of revenue and significant partnership opportunities. We are focussed on addressing the funding requirements for the business to deliver this growth and to capture the value of our platform and insulin assets."
By Tom Budszus, Alliance News slot editor
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