Arecor inks co-development deal with global medicine company

(Sharecast News) - Arecor Therapeutics announced a co-development and exclusive licence option agreement with an unnamed global medical products company on Monday. The AIM-traded firm said the collaboration would centre around a high-value, ready-to-dilute (RTD) oncology product derived from its in-house speciality hospital pipeline.

It said the agreement stipulated that Arecor, alongside its partner, would undertake further co-development and regulatory activities.

Arecor said it stood to gain potential developmental milestones as part of the collaboration.

Moreover, the agreement included an option for the partner to obtain an exclusive global licence for the continued development and commercialisation of the product, with Arecor being eligible for milestone payments and royalties.

Arecor said its breakthrough was developing a proprietary RTD formulation using its Arestat formulation technology platform.

It explained that the innovative liquid RTD version of an established 'blockbuster' oncology therapy offered substantial advantages compared to the current product.

The company said it would replace a time-consuming and resource-intensive reconstitution process, promoting safe medical practices and simplifying patient care by reducing chair time.

"This collaboration highlights the potential of our proprietary pipeline and Arestat technology to enable the development of high-value, specialty hospital products which bring improved treatment options to patients and caregivers and are attractive to pharmaceutical partners," said chief executive officer Sarah Howell.

"This product, from our in-house specialty hospital pipeline, is the second revenue-generating transaction of this type and demonstrates not only our expertise in selecting and delivering RTA and RTD improved medicines but also our commercial capabilities to convert these into value-driving collaborations at key inflection points."

Howell said the firm was confident that it had chosen the right partner, with outstanding commercial capabilities and a shared vision to bring a vital cancer medicine to patients.

"With the current therapy continuing to grow in both volume and value terms, this enhanced formulation has the potential to further benefit pharmacists and physicians through the simplified reconstitution process and, most importantly, improve care for patients."

At 0900 GMT, shares in Arecor Therapeutics were up 1.84% at 193.5p.

Reporting by Josh White for Sharecast.com.