Trinity Delta view: New funds are welcome, and will allow Arecor to invest judiciously in Tetris Pharma to drive Ogluo sales, whilst also continuing to expand the technology platform to include oral delivery of peptides as well as developing enhanced injectables, with these potentially generating meaningful future income streams through deals and partnerships. The funds also remove recent working capital headwinds. The key value driver for Arecor remains the diabetes franchise, with further development of disruptor insulin AT278 strongly supported by recent best-case Phase I data, albeit this will be subject to additional funding. As is usual, we suspend our valuation and forecasts; for context our last published Arecor valuation was £179m (or 583p/share).
