Arecor inks formulation study deal with 'leading' pharma firm

Biopharmaceuticals developer Arecor Therapeutics has signed an exclusive formulation study collaboration with the pharmaceutical division of “one of the world's largest” chemicals marketing and pharma companies, it announced on Thursday, which focuses on the development and commercialisation of speciality drugs.

The AIM-traded firm said that under the agreement, it would use its proprietary formulation technology platform ‘Arestat’ to develop a differentiated, stable liquid drug product for intravenous administration in a ready-to-use format.

It said the new liquid formulation of the product would support safe medication practices and operational efficiency, by eliminating the need for reconstitution.

The unnamed partner would fund the development work, and had the option to acquire the rights to the new proprietary formulation and associated intellectual property under a technology licensing model, to further develop and commercialise the product.

Arecor said the collaboration added to its growing portfolio of pre-licence technology partnerships which, subject to licensing, typically included both potential milestone and royalty payments and could offer significant future recurring revenue upside potential for the group.

“This collaboration further demonstrates the strength of our proprietary technology platform, Arestat, and its potential in the development of ready-to-use medicines,” said chief executive officer Sarah Howell.

“This is a field in which Arecor is building a considerable portfolio of potential specialty hospital products, as well as bringing our technology and experience to further our partners' products.

“Our expertise in formulating complex medicines, when combined with our partner's global network and specific local knowledge of providing access to the major markets worldwide, will be key to advancing these fast, safe and effective treatments for patients.”

At 0935 GMT, shares in Arecor Therapeutics were up 4.26% at 245p.

Reporting by Josh White for Sharecast.com.