CAMBRIDGE, UK - Arecor Therapeutics plc (AIM: LON:AREC), a biopharmaceutical company, today announced the planned orderly cessation of operations at its subsidiary Tetris Pharma during 2025. The move comes alongside a mutual decision with Xeris BioPharma Holdings, Inc. (Nasdaq: XERS) to return the commercial rights to Ogluo®, a glucagon auto-injector pen for severe hypoglycemia.
The decision follows a strategic review which highlighted the financial unsustainability of Tetris Pharma due to increased supply chain costs and inflexible selling prices, leading to significantly reduced margins. A key NHS tender loss by a partner, impacting non-Ogluo® product sales, also contributed to the revised 2025 revenue outlook. Consequently, Arecor has decided to fully impair goodwill and intangibles related to Tetris Pharma, amounting to approximately £3 million in 2024.
Arecor's focus will now shift to high-value research and development opportunities, particularly in advancing its ultra-rapid acting insulin candidate, AT278, and its oral peptide delivery platform. The company is actively engaging in co-development partnership discussions for AT278 and has reported promising data for an oral GLP-1 receptor agonist product, with non-clinical pharmacokinetic studies slated to begin in the first half of 2025.
Sarah Howell, CEO of Arecor, stated that this strategic shift underscores the company's commitment to leveraging its Arestat™ technology in areas with transformative potential. The company is set to continue developing its partnered portfolio of Arestat™ enabled therapeutics under a technology licensing model, which is expected to generate revenue.
The existing license and supply agreement with Xeris grants Tetris Pharma rights to sell and distribute Ogluo® in the EEA, UK, and Switzerland. The termination of this agreement is subject to discussions with regulators and patient groups, and alternative glucagon products remain available in all territories.
The information in this article is based on a press release statement from Arecor Therapeutics plc.
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