Arecor gets milestone payment from Arestat partner

Arecor Therapeutics announced a significant milestone in its collaboration with a global pharmaceutical partner on Friday.

The AIM-traded firm said it had received a milestone payment triggered by the first commercial sale of a product named AT220, which incorporates its proprietary ‘Arestat’ technology platform.

It said the achievement stemmed from a licensing agreement established in 2017, in which Arecor developed a novel and distinctive formulation for one of its global pharmaceutical partner's products.

Over the course of the collaboration, Arecor had received payments tied to specific development and commercial milestones.

Looking ahead, Arecor said it would benefit from revenue streams outlined in the royalty-bearing agreement, derived from future sales of AT220.

“The commercialisation of this product in Europe, the first to be launched incorporating our Arestat technology, is a significant milestone for Arecor and further demonstrates the strength of our Arestat platform and the value it can bring to our partners and ultimately patients,” said chief executive officer Sarah Howell.

“This also triggers a milestone payment and will lead to royalty payments, further underscoring our confidence in our strategy and the potential of our in-house portfolio and pipeline of partnered products to deliver long term value to shareholders.”

At 1126 GMT, shares in Arecor Therapeutics were up 1.34% at 184.95p.

Reporting by Josh White for Sharecast.com.