Ligand Pharmaceuticals Milestone Payment
Arecor Therapeutics plc has received a $0.5 million commercial milestone payment from Ligand Pharmaceuticals, representing the first such payment under their royalty financing agreement. This payment is related to the sale of global royalty rights for AT220 and potential milestone fees for AT292. Arecor initially received $7.0 million upfront and anticipates another $0.5 million in the second half of 2026, with the remaining $3 million contingent on future commercial milestones for AT220 and AT292. These non-dilutive funds are being utilized to accelerate Arecor's lead program, AT278, an ultra-concentrated and ultra-rapid-acting insulin, with a Phase 2 clinical trial anticipated to commence in the second half of 2026.
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Cambridge, UK, 26 March 2026: Arecor Therapeutics plc (AIM: AREC), a clinical stage biotech company developing superior therapeutics that can reduce treatment burden and improve outcomes for people living with diabetes, obesity and other cardiometabolic diseases, confirms that it has received its first milestone payment of $0.5 million from Ligand Pharmaceuticals Incorporated ('Ligand'), following the previously announced royalty financing agreement, the ('Agreement').
In September 2025, Arecor agreed to the sale of the global royalty rights related to AT220, an Arestat®-enhanced biosimilar product marketed by a global pharmaceutical company, and all potential milestone and technology access fees related to AT292 (licensed to Inhibrx, now Sanofi's Efdoralprin alfa) to Ligand. Arecor received an initial $7.0 million upfront cash payment, with an additional $4.0 million payable upon the achievement of certain commercial milestones related to AT220 and AT292.
Under the terms of the Agreement, the first commercial milestone has been achieved, resulting in a $0.5m payment to Arecor. Arecor expects to receive a further $0.5 million in the second half of 2026. The remaining $3 million is contingent upon achievement of future commercial milestones related to AT220 and AT292, which remain on track.
Sarah Howell, Chief Executive Officer of Arecor, said:
"The agreement with Ligand continues to generate non-dilutive funds which are being used to accelerate our lead programme, AT278. This is the only ultra-concentrated and ultra-rapid-acting insulin in development, in combination with Sequel Med Tech's innovative twiistTM Automated Insulin Delivery (AID) system. Arecor and Sequel Med Tech are making great progress across all of the trial-enabling development activities for the Phase 2 AT278-AID clinical trial which is anticipated to commence in 2H 2026."
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