Arecor Therapeutics

Hikma licence milestone achieved

Update | 13 January 2023

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Arecor has provided an update on its partnered Specialty Hospital programmes with Hikma Pharmaceuticals. AT307 and AT282 are both novel enhanced formulations of existing, albeit undisclosed, marketed injectable products. injectable products. The transfer of AT307 to Hikma for further development and, importantly, their commitment to seek approval under the FDA 505(b)(2) pathway triggers an undisclosed milestone payment. However, all rights to AT282 have been returned to Arecor following a product portfolio review at Hikma; Arecor will assess options for re-partnering AT282. Given Hikma’s focus and expertise with differentiated/specialty generic products, this collaboration provides strong external validation of Arecor’s capabilities, and we believe Hikma is well placed to capitalise on the potential of AT307. Updating our model generates an Arecor valuation of £174.5m (570p per share) from £179.6m previously.

Year-end: December 31202020212022E2023E
Revenues (£m)
Adj. PBT (£m)(4.3)(7.1)(12.7)(14.1)
Net Income (£m)(2.8)(6.2)(10.1)(11.2)
EPS (p)(0.2)(0.3)(0.3)(0.4)
Cash (£m)2.918.312.62.6
EBITDA (£m)(3.3)(6.3)(10.9)(12.4)
Source: Trinity Delta Note: Adjusted numbers exclude share-based payments and exceptionals
  • AT307 transferred to Hikma AT307, a novel RTA (ready to administer) formulation of an already marketed specialty hospital product, was developed using Arecor’s Arestat proprietary drug formulation technology platform. The Hikma deal was struck in October 2020, with subsequent updates indicating development work was progressing well. In the near-term, we continue to expect limited disclosure from Hikma and Arecor, and model first launch in 2025.
  • AT282 eligible for re-partnering Arecor retains unencumbered rights to AT282 following an internal portfolio review at Hikma. AT282, a novel stable RTU (ready to use) liquid concentrate formulation of an existing marketed product only available as a lyophilised powder requiring reconstitution before use, was initially developed to proof of concept by Arecor prior to the Hikma deal in January 2020. We now include AT282 within Arecor’s research stage in-house specialty hospital products portfolio.
  • Hikma Specialty Hospital product collaborations Under Arecor’s co-development and licence deal(s) with Hikma, signed in 2020, specific deal terms and the identity of the underlying assets were not disclosed due to commercial sensitivities. Arecor has received upfront payments and a licence milestone on the transfer of AT307. Hikma is responsible for any further development to support abbreviated regulatory filings in the US/EU and other regions, manufacturing, and commercialisation, with Arecor eligible for further development, regulatory and commercial milestones, and undisclosed royalties on sales (assumed high-single to double-digit percentages).
  • New valuation of £174.5m, or 570p per share Incorporating milestone receipt and increasing AT307’s probability of success, while removing AT282 as a standalone asset, reduces slightly our Arecor pipeline rNPV model to £174.5m (570p/share) from £179.6m previously.


13 January 2023

Market Cap£70.4m
Enterprise Value£57.8m
Shares in issue30.6m
12-month range210p-432p
Free float34.2%
Primary exchangeAIM London
Other exchangesN/A
Company codesAREC.L
Corporate clientYes

Company description

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.


Lala Gregorek
+44 (0) 20 3637 5043

Philippa Gardner
+44 (0) 20 3637 5042

Exhibit 1: Summary of financials
Source: Company, Trinity Delta  Note: Due to subsequent restatement of accounts FY19 relates to the 12 month period ending 31 May 2019.



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