Arecor Therapeutics shares tank on funding update

10th Jun 2024 07:52

(Sharecast News) - The share price of AIM-listed Arecor Therapeutics dropped by almost a third on Monday after the biopharma firm warned that its working capital requirements had "accelerated" while full-year revenues remain highly uncertain.

The company, which stated earlier in the year that it needed additional funding, said that the timing of potential pipeline revenue and an increase in costs had increased the need for funding, now expected to be required by the third quarter.

Arecor said full-year revenues are predicted to be in line with consensus estimates. "However, this remains dependent on revenue growth across all areas of the business including new potential licensing deals, increased Tetris Pharma sales and royalties from AT220, the timing and magnitude of which are not all fully within the company's control," the group said in a statement.

Additionally, Arecor said it would need to conduct an insulin pump study for its ultra-rapid acting insulin product, AT278, to provide sufficient data for potential licensing partners. No costs have been committed at this stage.

"We believe the growth potential for the company remains compelling with a number of revenue and significant partnership opportunities," said chief executive Sarah Howell.

"We are focussed on addressing the funding requirements for the business to deliver this growth and to capture the value of our platform and insulin assets."

The stock was down 30.8% at 110p by 0829 BST.