Acquisition of Tetris Pharma and £6m equity raise
Lighthouse | 01 August 2022
Trinity Delta view: There are several clear strategic benefits underpinning the Tetris Pharma acquisition, in our view, which we believe offers a low-cost, low-risk way to securing longer-term value for Arecor’s development efforts in Speciality Hospital Products and acceleration of revenue generation from Ogluo roll out. Currently Arecor’s formulation expertise is employed to create a portfolio of proprietary and partnered clinical assets. The partnered assets generate development and commercial milestones, plus royalties or equivalent on sales. The Tetris Pharma acquisition will allow selected future niche products to be marketed directly across Europe, providing an optimal set-up to crystallise value. Importantly, we view the in-house diabetes insulins, AT247 (ultra-rapid) and AT278 (ultra-concentrated ultra-rapid) as the key value drivers. These continue to progress well with their commercialisation strategy unchanged. As usual, we suspend our valuation and forecasts until deal completion.
01 August 2022
|Primary exchange||AIM London|
Arecor Therapeutics is a revenue-generating clinical stage drug developer, with a well-balanced portfolio of in-house and partnered programmes. Its proprietary Arestat formulation platforms result in enhanced products with lower development risks and less onerous regulatory approvals.
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