Hikma licence milestone achieved
Update | 13 January 2023
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 31||2020||2021||2022E||2023E|
|Adj. PBT (£m)||(4.3)||(7.1)||(12.7)||(14.1)|
|Net Income (£m)||(2.8)||(6.2)||(10.1)||(11.2)|
13 January 2023
|Shares in issue||30.6m|
|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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