Arecor Targets Broader AT278 Partnership as Phase II Trial Nears

Diabetes biotech company Arecor Therapeutics negotiating expanded deal to support clinical study and commercialization of its lead insulin candidate.

Apr. 13, 2026 at 7:21am

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A photorealistic studio still-life image featuring a single glass vial filled with a viscous, amber-colored liquid, symbolizing the concentrated insulin formulation of Arecor's AT278 candidate. The vial is placed on a clean, monochromatic background, using dramatic lighting and shadows to convey the abstract concept of pharmaceutical innovation.A refined, minimalist representation of Arecor's concentrated insulin formulation, hinting at the company's innovative approach to diabetes treatment.Cambridge Today

Arecor Therapeutics, a Cambridge-based diabetes biotech company, says it is in positive negotiations for a broader co-development and commercialization partnership for its lead insulin candidate AT278 as it targets a phase II clinical trial start in the second half of 2026. The company has an existing agreement with US insulin pump developer Sequel Med Tech and is now looking to expand that arrangement to support both the clinical study and longer-term commercialization of AT278, an ultra-concentrated, ultra-rapid-acting insulin formulated at 500U/mL for use with automated insulin delivery (AID) systems.

Why it matters

The potential expanded partnership is a key focus for Arecor's management as it looks to advance AT278 through clinical development and towards commercialization. Securing the right strategic deal could help the company limit shareholder dilution while funding the phase II trial and preparing for the product's eventual launch. The success of AT278 is crucial for Arecor as it seeks to establish its insulin portfolio and oral peptide delivery platform.

The details

Arecor signed an initial co-development agreement with Sequel Med Tech in September 2025, covering trial-enabling development work to combine AT278 with Sequel's twiist AID system. Both companies have since confirmed their strategic intent to expand that arrangement. Arecor also reported positive feedback from the US Food and Drug Administration (FDA) on the phase II trial design, with the trial-enabling work described as progressing well. To fund development while limiting shareholder dilution, Arecor agreed an $11 million royalty financing deal with Ligand Pharmaceuticals in September 2025, receiving $7 million upfront and with $4 million contingent on commercial milestones.

  • Arecor signed an initial co-development agreement with Sequel Med Tech in September 2025.
  • Arecor secured positive feedback from the FDA on the phase II trial design during the year.
  • Arecor agreed an $11 million royalty financing deal with Ligand Pharmaceuticals in September 2025.

The players

Arecor Therapeutics PLC

A Cambridge-based diabetes biotech company developing innovative pharmaceutical products.

Sequel Med Tech

A US insulin pump developer that Arecor has an existing co-development agreement with.

Ligand Pharmaceuticals

A pharmaceutical company that provided Arecor with $11 million in royalty financing.

Sarah Howell

The chief executive officer of Arecor Therapeutics.

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What they’re saying

“The board's current focus is securing the best possible deal to take AT278 into phase II while advancing the oral peptide platform with careful financial management.”

— Sarah Howell, Chief Executive Officer, Arecor Therapeutics

What’s next

Arecor is targeting a phase II clinical trial start for AT278 in the second half of 2026. The company is also working to expand its existing co-development agreement with Sequel Med Tech to further support the clinical study and commercialization of AT278.

The takeaway

Arecor's ability to secure the right strategic partnership for its lead insulin candidate AT278 will be crucial as it seeks to advance the product through clinical development and towards commercialization. Careful financial management and creative deal-making will be key to funding the phase II trial and preparing for AT278's eventual launch without excessive shareholder dilution.