Arecor Therapeutics PLC (AREC) AI Stock Analysis

• Market Cap: £32.47M
• Dividend Yield: N/A
• Average Volume (3M): 40.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 3.31%
• EPS Growth: 21.91%
• Country: UK
• Employees: 50
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.07
• Shares Outstanding: 37,756,600
• 10 Day Avg. Volume: 67,644
• 30 Day Avg. Volume: 40,099
• PEG Ratio: -0.22
• Price to Book (P/B): 4.59
• Price to Sales (P/S): 4.86
• P/FCF Ratio: -2.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 95.00p ▲(11.76% Upside)

Arecor Therapeutics' score is driven by positive corporate events, including strategic partnerships and IP expansion, which bolster its market position. However, financial performance challenges, such as ongoing losses and cash flow issues, weigh heavily on the overall score. Technical analysis and valuation present a neutral outlook, reflecting the typical risks and opportunities in the biotech sector.

Positive Factors

Partnership-driven revenue model

Arecor’s business model centers on licensing, collaborations and milestone/royalty structures with larger pharma partners. This reduces upfront commercialization burden, provides non-dilutive revenue pathways and aligns incentives, supporting durable funding and commercialization leverage over months.

Proprietary formulation technology and IP expansion

Arecor’s proprietary formulation tech and ongoing IP expansion create a sustainable competitive moat in specialty biologics and diabetes care. Strengthened IP and strategic ties increase partner interest and protect product differentiation, bolstering medium-term commercial prospects.

Consistent revenue growth trend

Reported step-up in revenue demonstrates commercial traction in partnerships and licensing arrangements. Persistent top-line growth, if sustained, improves runway dynamics and validates the tech-platform model, supporting operational scaling and partner negotiations over the coming months.

Negative Factors

Negative operating and free cash flows

Continued negative operating and free cash flows indicate structural cash burn from R&D and development programs. Without sustained partner payments or financing, this undermines liquidity and forces difficult prioritization of programs, impacting strategic flexibility over the medium term.

Persistent negative net income and margin pressure

Ongoing losses and deteriorating gross margins point to cost pressures and limited conversion of revenue into profits. If margin trends persist, profitability will remain distant, pressuring cash requirements and reducing reinvestment capacity for product development and commercialization.

Shrinking asset base and debt-to-equity concerns

A shrinking asset base alongside a notable debt-to-equity ratio raises capital structure risk. If assets and cash decline, reliance on external financing increases, potentially diluting shareholders or constraining investment decisions and strategic execution in the medium term.

Arecor Therapeutics PLC Business Overview & Revenue Model

Company Description

Arecor Therapeutics PLC, a biopharmaceutical company, focuses on developing products in diabetes and other indications. The company through its proprietary formulation technology platform, Arestat, developing a portfolio of proprietary products in diabetes and other indications, as well as working with pharmaceutical and biotechnology companies to deliver enhanced reformulations of therapeutic products. It is developing AT247, an ultra-rapid acting insulin for patients with Type I and Type II diabetics; and AT278, an ultra-concentrated rapid acting insulin formulation that has been designed to accelerate the absorption of insulin post injection. The company was founded in 2007 and is headquartered in Little Chesterford, the United Kingdom.

How the Company Makes Money

Arecor Therapeutics generates revenue primarily through partnerships and collaborations with larger pharmaceutical companies, which often involve licensing agreements for its proprietary technology and products. The company may also receive milestone payments and royalties based on the commercial performance of these partnered products. In addition, Arecor may engage in research and development (R&D) contracts that provide funding during the development phase of its therapeutics. Furthermore, the company may explore opportunities for direct sales of its own developed products, should they receive regulatory approval and enter the market.

Arecor Therapeutics PLC Financial Statement Overview

Summary

Arecor Therapeutics PLC is experiencing revenue growth but faces significant operational challenges, including negative net income and declining gross profit margins. The balance sheet shows a strong equity position but with a concerning debt-to-equity ratio and shrinking asset base. Cash flow statements highlight heavy cash burn and sustainability concerns typical for early-stage biotech firms.

Income Statement

Arecor Therapeutics PLC has shown significant revenue growth over the years, with a notable increase from 2022 to 2023. However, the company consistently reports negative net income and EBIT, which indicates operational challenges in maintaining profitability. Gross profit margin has significantly declined in 2023 from previous levels due to increasing costs. The negative EBIT and EBITDA margins highlight the ongoing struggle to generate positive operating income, characteristic of early-stage biotech firms focusing on R&D.

Balance Sheet

The balance sheet reveals a strong equity position, with a significant portion of the total assets funded by stockholders' equity, reflected in the equity ratio. However, the company has a concerning debt-to-equity ratio and a shrinking asset base, which could pose risks if cash reserves continue to deplete without achieving profitability. Despite this, low debt levels suggest manageable leverage.

Cash Flow

Cash flow statements show negative operating and free cash flows, emphasizing heavy cash burn typical for biotech companies at this stage. While the company raised capital through financing activities, the continuous negative free cash flow growth rate flags sustainability concerns if the trend persists. The operating cash flow to net income ratio highlights a challenging conversion of revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.06M	5.05M	4.57M	2.40M	1.16M	1.70M
Gross Profit	-344.00K	1.54M	4.57M	2.40M	1.16M	1.70M
EBITDA	-8.02M	-10.15M	-8.39M	-10.06M	-6.27M	-3.26M
Net Income	-8.10M	-10.24M	-8.55M	-9.26M	-6.17M	-2.75M
Balance Sheet
Total Assets	5.25M	8.72M	15.38M	21.77M	20.92M	4.28M
Cash, Cash Equivalents and Short-Term Investments	1.89M	3.26M	6.75M	12.81M	18.32M	2.90M
Total Debt	173.00K	232.00K	338.00K	288.00K	231.00K	2.00M
Total Liabilities	2.39M	3.37M	5.85M	4.31M	2.37M	3.51M
Stockholders Equity	2.86M	5.35M	9.53M	17.45M	18.55M	773.79K
Cash Flow
Free Cash Flow	-6.20M	-9.18M	-5.99M	-11.13M	-5.52M	-1.91M
Operating Cash Flow	-6.09M	-9.15M	-5.84M	-10.78M	-5.45M	-1.86M
Investing Cash Flow	1.00K	1.72M	6.52M	-7.99M	-68.00K	-49.32K
Financing Cash Flow	5.64M	5.65M	-180.00K	5.16M	20.93M	1.77M

Arecor Therapeutics PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AREC, the sentiment is Positive. The current price of 85 is above the 20-day moving average (MA) of 82.45, above the 50-day MA of 77.24, and above the 200-day MA of 60.46, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AREC.

Arecor Therapeutics PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AREC	56 Neutral	£32.47M	-3.89	-204.29%	―	3.31%	21.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TRX	49 Neutral	£5.16M	-4.90	-5.41%	―	-20.31%	-19.35%
SAR	47 Neutral	£27.61M	-5.93	-202.14%	―	―	23.76%
IMM	46 Neutral	£36.70M	-8.20	-259.88%	―	―	―
OPTI	43 Neutral	£6.09M	-42.14	-2.42%	―	―	―
HEMO	43 Neutral	£37.52M	-2.80	-609.30%	―	―	―

Arecor Therapeutics PLC Corporate Events

Arecor and Sequel Med Tech to Host Virtual Panel on Future of Diabetes Treatment

Arecor Therapeutics has announced that it will co-host a virtual fireside panel discussion with Sequel Med Tech on 7 January 2026 to explore the future of the treatment journey for people with diabetes and the factors driving innovation in diabetes care. The event, which will not introduce any new material company information, underscores Arecor’s and Sequel’s strategic focus on advanced insulin and drug-delivery technologies and positions both companies as thought leaders in shaping next-generation diabetes management solutions for patients and healthcare stakeholders.

The most recent analyst rating on (GB:AREC) stock is a Hold with a £76.00 price target. To see the full list of analyst forecasts on Arecor Therapeutics PLC stock, see the GB:AREC Stock Forecast page.

Arecor and Sequel to Discuss Future of Insulin Delivery Systems

Arecor Therapeutics PLC and Sequel Med Tech LLC are set to host a virtual fireside panel discussion on January 7, 2025, focusing on the treatment journey for diabetes patients and the future of insulin delivery systems. The discussion will highlight Arecor’s AT278 insulin and Sequel’s twiist device, exploring their co-development and the potential advancements in the diabetes/insulin pump sector. This event underscores Arecor’s strategic positioning in advancing diabetes care and its collaboration with Sequel to innovate in the insulin delivery market.

The most recent analyst rating on (GB:AREC) stock is a Hold with a £76.00 price target. To see the full list of analyst forecasts on Arecor Therapeutics PLC stock, see the GB:AREC Stock Forecast page.

Arecor Therapeutics Expands IP Portfolio with New Patents for Diabetes Innovations

Arecor Therapeutics has strengthened its intellectual property (IP) portfolio with new patents for its lead product, AT278, and its oral peptide delivery technology. The US and European patents for AT278, an ultra-concentrated and ultra-rapid acting insulin, enhance its potential for integration with automated insulin delivery systems. Additionally, a new patent application for improving oral bioavailability of peptides has been filed, addressing a significant barrier in developing oral peptide therapies. These advancements reinforce Arecor’s position in the biopharmaceutical industry, particularly in the diabetes and cardiometabolic disease sectors, and demonstrate its commitment to innovation and IP protection.

The most recent analyst rating on (GB:AREC) stock is a Hold with a £70.00 price target. To see the full list of analyst forecasts on Arecor Therapeutics PLC stock, see the GB:AREC Stock Forecast page.