Arecor upbeat on signing of exclusive licensing deal

(Sharecast News) - Arecor Therapeutics announced the signing of an exclusive licensing agreement for AT351, a ready-to-dilute (RTD) liquid formulation of a widely-used critical care therapy, with a subsidiary of a leading global pharmaceutical-focused chemicals marketing company on Monday. The AIM-traded firm said the deal would build on a successful collaboration in which Arecor leveraged its proprietary 'Arestat' technology to develop the formulation.

Under the terms of the agreement, Arecor said it would receive an upfront milestone payment, with additional potential payments tied to development, regulatory, and commercial milestones, as well as royalties on global sales.

The licensee would gain exclusive worldwide rights to AT351, and would be responsible for its development, regulatory submissions, and commercialisation.

A US Food and Drug Administration 505b2 submission was expected within three years.

Arecor said AT351 had the potential to become the first RTD liquid formulation of its kind, addressing challenges in critical care by eliminating lengthy preparation processes and reducing costs across the supply chain.

"The progress of this collaboration illustrates the value that our proprietary technology platform, Arestat, can bring to our partners," said chief executive officer Sarah Howell.

"It further validates our strengths in the development of differentiated medicines to improve patient outcomes and underscores our confidence in Arecor's technology partnership and licensing strategy to deliver long term value for shareholders."

At 0846 GMT, shares in Arecor Therapeutics were up 3.6% at 72p.

Reporting by Josh White for Sharecast.com.