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Arecor Therapeutics PLC
(LSE:AREC)
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Rating:47Neutral
Price Target:
71.00 p
▼(-16.47% Downside)
Action:Reiterated
Date:10/01/26
The score is held down primarily by weak operating performance and ongoing negative free cash flow despite some 2025 improvement, plus a sharp 2025 revenue drop. Low leverage provides balance-sheet support, but valuation (P/E ~41) offers little cushion, and technicals are mixed with near-term weakness (low RSI and price below the 20-day average).
Positive Factors
Very low leverage
Minimal debt reduces interest and refinancing pressure, preserving financial flexibility while Arecor advances its development pipeline. This balance-sheet resilience can help the company withstand operating volatility and direct available resources toward formulation programs and partnerships.
Negative Factors
Sharp revenue contraction
The 2025 revenue reversal demonstrates that commercial or partnership income remains volatile and difficult to rely on as a steady base. Such a sharp contraction can constrain reinvestment, weaken planning visibility, and make future results more dependent on individual deals or milestones.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Minimal debt reduces interest and refinancing pressure, preserving financial flexibility while Arecor advances its development pipeline. This balance-sheet resilience can help the company withstand operating volatility and direct available resources toward formulation programs and partnerships.
Read all positive factors
Arecor Therapeutics PLC (AREC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£27.37M
Dividend YieldN/A
Average Volume (3M)25.70K
Price to Earnings (P/E)145.0
Beta (1Y)0.58
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees33
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)<0.01
Shares Outstanding37,756,600
10 Day Avg. Volume32,603
30 Day Avg. Volume25,698
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)4.71
Price to Sales (P/S)17.73
P/FCF Ratio-12.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.16
Revenue Forecast (FY)£857.00K
Arecor Therapeutics PLC Business Overview & Revenue Model
Company Description
Arecor Therapeutics PLC is a biopharmaceutical enterprise dedicated to creating therapies for diabetes and various other medical conditions. The company utilizes its exclusive Arestat formulation technology platform to both cultivate its own range...
How the Company Makes Money
Arecor makes money primarily through (1) partnering and licensing its formulation technology and reformulated product programs to other pharmaceutical and biotechnology companies and (2) advancing its own proprietary product candidates that can be...
Arecor Therapeutics PLC Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
70
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -95.00K | 1.71M | 5.05M | 4.57M | 2.40M | 1.16M |
| Gross Profit | 760.00K | 1.05M | 1.54M | 4.57M | 2.40M | 1.16M |
| EBITDA | -5.18M | -4.45M | -10.15M | -8.39M | -10.06M | -6.27M |
| Net Income | 190.00K | 664.00K | -10.24M | -8.55M | -9.26M | -6.17M |
Balance Sheet | ||||||
| Total Assets | 4.65M | 8.10M | 8.72M | 15.38M | 21.77M | 20.92M |
| Cash, Cash Equivalents and Short-Term Investments | 3.15M | 6.13M | 3.26M | 6.75M | 12.81M | 18.32M |
| Total Debt | 57.00K | 98.00K | 232.00K | 338.00K | 288.00K | 231.00K |
| Total Liabilities | 966.00K | 1.65M | 3.37M | 5.85M | 4.31M | 2.37M |
| Stockholders Equity | 3.68M | 6.45M | 5.35M | 9.53M | 17.45M | 18.55M |
Cash Flow | ||||||
| Free Cash Flow | -4.48M | -2.39M | -9.18M | -5.99M | -11.13M | -5.52M |
| Operating Cash Flow | -4.45M | -2.29M | -9.15M | -5.84M | -10.78M | -5.45M |
| Investing Cash Flow | 4.33M | 2.38M | 1.72M | 6.52M | -7.99M | -68.00K |
| Financing Cash Flow | -129.00K | -148.00K | 5.65M | -180.00K | 5.16M | 20.93M |
Arecor Therapeutics PLC Technical Analysis
Neutral
85.00
Price Trends
71.57
Positive
67.99
Positive
70.73
Positive
Market Momentum
1.01
Positive
34.92
Neutral
10.96
Positive
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 82.03, above the 50-day MA of 71.57, and above the 200-day MA of 70.73, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 34.92 is Neutral, neither overbought nor oversold. The STOCH value of 10.96 is Positive, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £87.52M | 11.87 | 65.83% | 8.90% | -8.21% | -5.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | £27.37M | 145.00 | 3.75% | ― | ― | ― | |
47 Neutral | £337.25M | -7.89 | -1293.07% | ― | ― | ― | |
47 Neutral | £14.08M | -11.36 | -97.87% | ― | 7.38% | 44.13% | |
46 Neutral | £11.27M | -3.25 | -135.35% | ― | 13.42% | 65.63% | |
43 Neutral | £658.34M | -15.74 | -54.51% | ― | 15.97% | 3.72% |
* Healthcare Sector Average
GB:AREC
Arecor Therapeutics PLC
72.50
-11.50
-13.69%
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Arecor Therapeutics PLC Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Arecor Raises £5m in Share Placing to Extend Cash Runway and Fund Insulin Programmes
Positive
Sep 30, 2026
Arecor Therapeutics has raised approximately £5.0 million through a conditional placing of 7,352,941 new ordinary shares at 68 pence each with institutional and professional investors. The new capital is intended to strengthen its balance she...
Business Operations and StrategyPrivate Placements and Financing
Arecor Launches Retail Share Offer After £5m Placing
Positive
Sep 30, 2026
Arecor Therapeutics plc is a clinical-stage biotechnology company listed on AIM that develops enhanced therapeutics aimed at reducing treatment burden and improving outcomes for people with diabetes, obesity and other cardiometabolic diseases. The...
Business Operations and StrategyPrivate Placements and Financing
Arecor Closes Order Book for Accelerated Equity Placing
Positive
Sep 30, 2026
Arecor Therapeutics plc has closed its accelerated bookbuild placing to new orders, marking the completion of the order-taking phase in its latest equity fundraising process. The company plans to announce the final result of the placing and the ti...
Business Operations and StrategyPrivate Placements and Financing
Arecor launches £5.13m share fundraising to drive next‑generation insulin development
Positive
Sep 30, 2026
Arecor Therapeutics plc has launched a proposed fundraising of up to £5.13 million via a placing of approximately 7.35 million new shares at 68 pence and a separate retail offer of up to 191,176 shares to qualifying UK shareholders. The new s...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Arecor advances insulin partnerships and launches funding amid wider losses
Neutral
Sep 30, 2026
Arecor Therapeutics reported interim results for the six months to 30 June 2026, highlighting progress in its diabetes franchise as partnering talks with multiple insulin pump companies for its insulin-AID combinations reached term sheet stage. Co...
Business Operations and StrategyProduct-Related Announcements
Arecor’s AT278 Data Published, Underscoring Ultra-Rapid Potential in High-Dose Diabetes Care
Positive
Aug 13, 2026
Arecor Therapeutics announced that full clinical results from its AT278-104 trial have been published in the peer-reviewed journal Diabetes, Obesity Metabolism, providing external validation for its lead ultra-concentrated insulin candidate. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.