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Arecor Therapeutics PLC (GB:AREC)
LSE:AREC

Arecor Therapeutics PLC (AREC) AI Stock Analysis

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Arecor Therapeutics PLC

(LSE:AREC)

44Neutral
Arecor Therapeutics PLC's stock score reflects its growth potential in the biotech sector, bolstered by strategic partnerships and revenue growth. However, significant financial challenges, including ongoing losses and cash flow issues, weigh heavily on the score. Technical indicators also suggest bearish momentum, with the stock appearing oversold. The valuation remains unattractive due to a negative P/E ratio and lack of dividends. These factors collectively contribute to a cautious outlook despite promising corporate developments.

Arecor Therapeutics PLC (AREC) vs. S&P 500 (SPY)

Arecor Therapeutics PLC Business Overview & Revenue Model

Company DescriptionArecor 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 MoneyArecor Therapeutics PLC generates revenue through a multi-faceted business model that includes proprietary product development, licensing agreements, and strategic partnerships. The company develops its own pipeline of proprietary formulations, which, upon successful development and approval, generate revenue through sales or out-licensing agreements. Additionally, Arecor partners with major pharmaceutical companies to apply its Arestat™ technology to improve the formulation of existing drugs, earning milestone payments, royalties, and license fees in return. These partnerships are crucial as they provide upfront payments and long-term revenue streams through shared commercial success of the enhanced products.

Arecor Therapeutics PLC Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
4.57M2.40M1.16M1.70M1.89M
Gross Profit
4.57M2.06M1.16M1.70M1.89M
EBIT
-9.18M-10.63M-5.98M-3.43M-2.69M
EBITDA
-8.39M-10.06M-6.27M-3.26M-2.61M
Net Income Common Stockholders
-8.55M-9.26M-6.17M-2.75M-2.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.75M12.81M18.32M2.90M3.07M
Total Assets
15.38M21.77M20.92M4.28M4.31M
Total Debt
338.00K288.00K231.00K2.00M60.39K
Net Debt
-4.75M-4.48M-18.09M-903.11K-3.01M
Total Liabilities
5.85M4.31M2.37M3.51M1.10M
Stockholders Equity
9.53M17.45M18.55M773.79K3.21M
Cash FlowFree Cash Flow
-5.99M-11.13M-5.52M-1.91M-491.10K
Operating Cash Flow
-5.84M-10.78M-5.45M-1.86M-458.80K
Investing Cash Flow
6.52M-7.99M-68.00K-49.32K-22.89K
Financing Cash Flow
-180.00K5.16M20.93M1.77M-131.02K

Arecor Therapeutics PLC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price38.00
Price Trends
50DMA
43.89
Negative
100DMA
52.85
Negative
200DMA
65.85
Negative
Market Momentum
MACD
-1.62
Negative
RSI
21.30
Positive
STOCH
40.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AREC, the sentiment is Neutral. The current price of 38 is below the 20-day moving average (MA) of 38.02, below the 50-day MA of 43.89, and below the 200-day MA of 65.85, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 21.30 is Positive, neither overbought nor oversold. The STOCH value of 40.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:AREC.

Arecor Therapeutics PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.23B3.70-41.86%2.84%16.58%-0.16%
44
Neutral
£14.35M-137.62%10.50%-9.60%
GBSYN
40
Underperform
£3.19M0.5056.96%-55.66%
GBPYC
38
Underperform
£1.35M-116.39%-21.33%-2.50%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AREC
Arecor Therapeutics PLC
38.00
-98.50
-72.16%
GB:HCM
HUTCHMED (China)
225.50
-112.50
-33.28%
GB:SYN
Oilex Ltd
0.02
-0.09
-81.82%
GB:PYC
Physiomics
0.48
-0.77
-61.60%
OXBDF
Oxford BioMedica
3.84
-0.31
-7.47%

Arecor Therapeutics PLC Corporate Events

Shareholder MeetingsFinancial Disclosures
Arecor Therapeutics Releases 2024 Annual Report and Announces AGM
Neutral
May 6, 2025

Arecor Therapeutics plc has released its Annual Report and Accounts for the year ending December 31, 2024, and announced its Annual General Meeting scheduled for June 2, 2025. This announcement provides shareholders with updated financial information and strategic insights, potentially impacting investor confidence and the company’s market positioning.

Spark’s Take on GB:AREC Stock

According to Spark, TipRanks’ AI Analyst, GB:AREC is a Neutral.

Arecor Therapeutics PLC’s stock score reflects its growth potential in the biotech sector, bolstered by strategic partnerships and revenue growth. However, significant financial challenges, including ongoing losses and cash flow issues, weigh heavily on the score. Technical indicators also suggest bearish momentum, with the stock appearing oversold. The valuation remains unattractive due to a negative P/E ratio and lack of dividends. These factors collectively contribute to a cautious outlook despite promising corporate developments.

To see Spark’s full report on GB:AREC stock, click here.

Business Operations and StrategyFinancial Disclosures
Arecor Therapeutics to Present Annual Results on Investor Platform
Neutral
Apr 24, 2025

Arecor Therapeutics plc announced that its CEO, Sarah Howell, and CFO, David Ellam, will present the company’s final results for the year ended 31 December 2024 on the Investor Meet Company platform on 1 May 2025. This presentation is accessible to both existing and potential shareholders, allowing them to submit questions in advance or during the live session. This initiative reflects Arecor’s commitment to transparency and engagement with its stakeholders, potentially enhancing its market presence and investor relations.

Executive/Board ChangesBusiness Operations and Strategy
Arecor Therapeutics Grants Options to CFO Under Incentive Plans
Neutral
Apr 23, 2025

Arecor Therapeutics plc announced the grant of 230,000 options to its Chief Financial Officer, David Ellam, under the company’s Long Term Incentive Plan and All Employee Share Ownership Plan. This move is part of Arecor’s strategy to incentivize and retain key management personnel, potentially impacting the company’s operational focus and aligning management interests with shareholder value.

Business Operations and StrategyFinancial Disclosures
Arecor Therapeutics Reports 2024 Results and Strategic Advancements
Neutral
Apr 22, 2025

Arecor Therapeutics reported its final results for 2024, highlighting significant progress in its diabetes portfolio and the potential for innovation in oral peptide delivery. The company achieved a total revenue of £5.1 million, with advancements in its ultra-concentrated insulin candidate, AT278, and a new collaboration for oral peptide delivery. Despite a loss after tax of £10.2 million, Arecor remains focused on high-value R&D opportunities and expanding its partnership portfolio, positioning itself for future growth and success.

Financial Disclosures
Arecor Therapeutics to Announce 2024 Financial Results
Neutral
Apr 10, 2025

Arecor Therapeutics plc announced it will release its audited final results for the year ended 31 December 2024 on 22 April 2025. The announcement will include an in-person briefing for analysts, along with a live webcast and conference call, indicating the company’s commitment to transparency and engagement with stakeholders.

Product-Related AnnouncementsBusiness Operations and Strategy
Arecor Therapeutics Collaborates with Global Pharma Giant
Positive
Mar 26, 2025

Arecor Therapeutics has entered into a collaboration with a major global pharmaceutical company to develop a novel formulation of the partner’s proprietary product using Arecor’s Arestat™ technology. This partnership, which is fully funded by the partner, underscores Arecor’s leadership in drug delivery and formulation innovation, potentially leading to future licensing opportunities and enhancing its market positioning.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Arecor Partners to Innovate Peptide Therapy Formulation
Positive
Mar 12, 2025

Arecor Therapeutics plc has announced a collaboration with a clinical-stage biopharmaceutical company to develop a novel formulation of peptide therapy using its Arestat™ technology platform. This partnership, which includes funding for development and an option for the partner to license the new formulation, underscores Arecor’s leadership in the peptide therapeutics market, a sector projected to exceed $100 billion by 2034. The collaboration aims to leverage Arecor’s expertise in creating advanced peptide formulations, addressing unmet patient needs in a rapidly growing market driven by the rise of endocrine and metabolic diseases.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.