Arecor Therapeutics PLC (AREC) AI Stock Analysis

• Market Cap: £30.77M
• Dividend Yield: N/A
• Average Volume (3M): 40.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• 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: 84.00p ▼(-1.18% Downside)

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

Proprietary formulation technology

Arecor's core proprietary formulation platform directly targets improved stability and performance of protein therapeutics, a structural advantage in biopharma. Durable IP around formulation can enable recurring licensing, higher partner interest, and differentiation versus generic formulations over the next several quarters.

Partnership and licensing revenue model

A partnership-driven business model provides non-dilutive funding, milestone and royalty upside, and faster market access through established partners. Over 2–6 months this reduces commercialization risk and preserves cash compared with solo commercialization, supporting sustained R&D investment.

Strategic partnerships and IP expansion

Recent corporate events that expand IP and add strategic partners strengthen Arecor's market position and long-term bargaining power. Enhanced IP and a reinforced board increase the likelihood of successful licensing deals and sustain competitive moat across the product pipeline over multiple quarters.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows indicate ongoing cash burn that can force further fundraising or dilution. Without material partnership receipts or commercialization, this structural cash deficit limits strategic flexibility and heightens execution risk over the next several quarters.

Consistent losses and margin pressure

Ongoing negative net income and declining gross margins show the company is not yet converting revenue into sustainable profits. If cost structure and margin trends persist, Arecor may struggle to reach break-even, constraining reinvestment into R&D and commercialization over the medium term.

Shrinking asset base and debt concerns

A contracting asset base coupled with a higher debt-to-equity ratio elevates balance-sheet risk. Reduced asset coverage can limit liquidity buffers and increase refinancing needs, making the company more vulnerable to funding shocks and impacting its capacity to execute strategic programs over the coming months.

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, yet faces challenges with negative net income and cash flow issues typical of early-stage biotech firms. The balance sheet shows a strong equity position but also highlights concerns with a shrinking asset base and high debt-to-equity ratio.

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: Neutral
• Last Price: 85.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 85 is above the 20-day moving average (MA) of 83.88, above the 50-day MA of 80.03, and above the 200-day MA of 63.58, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 57.08 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVXP	75 Outperform	£96.66M	12.73	64.40%	8.33%	-3.61%	-6.35%
AREC	56 Neutral	£30.77M	-3.69	-204.29%	―	3.31%	21.91%
APTA	52 Neutral	£23.60M	-6.25	-213.66%	―	39.88%	81.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OXB	48 Neutral	£1.00B	-23.77	-74.64%	―	55.44%	75.77%
FAB	44 Neutral	£16.88M	-9.38	-164.37%	―	-11.43%	23.40%
AVCT	42 Neutral	£225.26M	―	―	―	―	―

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.