Ligand to pay Arecor up to $11M in AT220 royalty financing agreement

Arecor Therapeutics has signed a co-development agreement with Sequel Med Tech to combine AT278 with Sequel’s twiist Automated Insulin Delivery system powered by Tidepool, and a royalty financing agreement with Ligand (LGND) Pharmaceuticals which will raise non-dilutive capital of up to $11M. Arecor has sold 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 to Ligand. Under the terms of the agreement, Ligand will pay Arecor up to $11M. This includes a $7M upfront cash payment and an additional $4M, which will be payable upon the achievement of certain commercial milestones related to AT220 and AT292, of which $1M is expected to be received during 2026. As part of the transaction, Ligand will receive warrants over 1,002,739 ordinary shares of 1 pence each in the company which will be fully paid and will rank pari passu in all respects with the existing ordinary shares of the company. The exercise price for the warrants will be 67.39 pence, being the 30-day volume-weighted average price at the date of the agreement. The warrants are exercisable over 10 years.