Arecor announces Co-development Agreement with US Insulin Pump Device Company for AT278 & Sale of Royalty Rights and Technology Access Fees for AT220 and AT292

Core Viewpoint - Arecor Therapeutics has entered a co-development agreement with Sequel Med Tech for AT278, an ultra-concentrated insulin, and secured up to $11 million in non-dilutive funding through a royalty financing agreement with Ligand Pharmaceuticals, enhancing its strategic position in the diabetes management market [2][4][11]. Co-Development Agreement - Arecor and Sequel will co-fund development activities for the AT278-AID System, with each company committing up to $1.3 million to prepare for Phase 2 clinical trials [6][12]. - The collaboration aims to leverage Sequel's advanced automated insulin delivery technology, which offers superior dosing accuracy and faster occlusion detection, complementing AT278's rapid insulin delivery [5][10]. Market Opportunity - The total addressable US insulin revenue market for AT278 is estimated at approximately $2.9 billion, with additional potential in Europe and other regions [11]. - The partnership targets two high unmet-need segments: individuals requiring high daily insulin doses and those seeking extended-wear devices [11]. Financial Aspects - Arecor has secured a royalty financing agreement with Ligand, which includes a $7 million upfront payment and up to $4 million based on commercial milestones related to AT220 and AT292 [16][19]. - The financing extends Arecor's cash runway to the first half of 2027, allowing for the initiation of Phase 2-enabling activities without shareholder dilution [18][19]. Strategic Intent - Both companies express intent to establish a broader co-development and commercialization partnership for AT278, addressing significant patient needs in a high-value market [7][14]. - Arecor's management views AT278 as a key asset that could catalyze the development of next-generation insulin delivery systems, simplifying diabetes care [13][22].