Arecor Therapeutics

Sanofi deal for INBRX-101 validates Arestat technology

Lighthouse | 24 January 2024

Share this note

  • Sanofi is acquiring Inhibrx for its Arecor-partnered asset INBRX-101 in a $2.2bn deal (non-INBRX-101 assets will be spun off into a new Inhibrx). For each Inhibrx share, shareholders will receive (1) $30 in cash ($1.7bn, fully diluted), (2) one non-transferable CVR (contingent value right) of $5, conditional on receiving FDA approval by June 30, 2027 (a potential $296m additional cash consideration), and (3) 0.25 shares of a new publicly traded company ‘New Inhibrx’, that will retain the non-INBRX-101 assets, in which Sanofi will hold an 8% equity stake. Deal closure is expected in Q224.
  • In December 2020, Inhibrx exercised its option to licence AT292, a novel enhanced formulation of INBRX-101 enabled by Arecor’s Arestat platform. Under the terms of the licence deal, Arecor received an upfront payment and is entitled to further payments on achieving development, regulatory, and commercial milestones, plus annual technology access fees post-launch. The most recent undisclosed milestone was triggered in November 2023, following dosing of the first patient in the registration-enabling ElevAAte trial for the treatment of emphysema due to alpha-1 antitrypsin deficiency (AATD). INBRX-101 was granted FDA Fast Track Designation in this indication in May 2022. Topline ElevAAte data are expected late-2024. Assuming these are positive, we have modelled a potential 2026 launch.
  • INBRX-101 is a recombinant human Alpha-1 Antitrypsin Fc-fusion Protein in development for the treatment of AATD, AATD is an inherited orphan genetic disease characterised by low levels of the AAT enzyme (neutrophil elastase inhibitor), that predominantly affects the lung (but also the liver in c 15% of cases) resulting in progressive tissue deterioration. INBRX-101 has the potential to help AATD patients normalise their serum AAT levels with less frequent dosing (monthly vs weekly), helping reduce inflammation, preventing further decline in lung function, and improving quality of life vs the current standard of care.

Trinity Delta view: Sanofi’s acquisition of INBRX-101 fits in with its portfolio growth strategy and its focus and reputation in rare diseases, and the $1.7bn+ deal value underscores INBRX-101’s attractiveness. For Arecor this is further commercial validation for its formulation expertise and ability to create clearly differentiated assets. INBRX-101 is Arecor’s second most advanced partnered asset, behind biosimilar AT220 (believed to be Fresenius Kabi’s tocilizumab) which launched in Europe in H223; both emerged from a technology formulation partnership. Such partnerships are a low-risk business model generating near-term revenues; Arecor receives research fees from day one of any formulation development collaboration under which it reformulates and develops optimised versions of a partner’s own products or product candidates. Should these convert to licences, as with AT220 and INBRX-101, there is potential for meaningful financial upside via milestones and future commercialisation income (royalties or similar). For more detail on Arecor’s investment case see our November 2023 Outlook. Our valuation remains £179m, equivalent to 583p per share.


24 January 2024

Market Cap£51.3m
Primary exchangeAIM London
Company CodeAREC
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


Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publicly available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2024 Trinity Delta Research Limited. All rights reserved.