Arecor Therapeutics (LSE:AREC) — Interim Results

0:01 Good afternoon, ladies and gentlemen, and welcome to the ARECOR THERAPEUTICS PLC Interim Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the Q and A tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish those responses where it's appropriate to do so. Before we begin, I would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to CEO, Sarah Howe. Sarah, good afternoon. Good afternoon, and welcome, everybody. Thank you for taking the time to join us today. So, I'll be talking through our interim results for the six month ending the 06/30/2024 and also, a little bit more about the outlook and upcoming milestones for ARECOR THERAPEUTICS.

1:04 So I'll draw your attention to our legal notice. So, for those of you that might be joining us for the first time today, I'll just spend a few minutes really giving a some background information, a high level view of ARECOR. So at ARECOR, we're very much focused on transforming patient care by bringing enhanced therapeutic medicines to markets that are more effective, easier to use, and safer. And we do this by leveraging our innovative and proprietary formulation technology platform, Aristat. So we're essentially developing novel formulations of existing therapeutic medicines that bring these enhanced properties. We have a very diverse and derisked portfolio of both in house proprietary products as well as partner programs.

1:53 In our in house proprietary pipeline, we're focused in areas where there is high unmet patient need, but in high value markets. So very much focused within the diabetes and obesity space there. We have two clinical stage insulin products where we have best in class superior data compared to the best insulins that are available for the patient population today. And I'll talk about AT two seventy eight, one of our insulin products in more detail as we've just announced, some significant clinical data related to that program. We also have technology collaborations and new areas of research in oral GLP one and also key collaborations with some of the largest pharma companies and med tech companies in the world such as Medtronic here in the diabetes space, which is for a novel insulin for implantable pumps.

2:46 Then on our partnering programs, this is where we partner with major pharmaceutical and biotech companies. This is where they come to us looking for an enhanced version of their proprietary products that they've not been able to achieve themselves. These partnerships are revenue generating from day one, so they're paying for access to our technology and our expertise and the IP that sits behind that. We're a very IP rich company. And the real upside here from this model is that when we have developed novel formulations that meet their target product profiles, they have the option to take those forward into further developments or commercialization under a licensing model, and these tend to be milestone and royalty bearing. And then within our commercial organization by Tetris Pharma, we are very much focused on the increasing, use and sales and marketing of our lead product, Gluo, which is a ready to use glucagon pen for the treatment of severe hypoglycemia.

3:43 And again, I'll talk about that in a little bit more detail. So we have growing revenue streams through our partnerships and licenses with major pharmaceutical companies, a very significant upside potential from our diabetes and obesity proprietary pipeline. So I'm not going to talk in great detail around our portfolio today because we'll I'll touch on many of these products as we walk through the presentation. But just a couple of key points to note here is because we're taking existing therapeutic medicines, it means that their safety and efficacy is already known and demonstrated. So this means that we can follow abbreviated regulatory and development pathways to market so that they're lower cost, faster to market, and of course lower risk here. These products are not going to fail on safety and efficacy. It's all around the improvements that we can bring to the table.

4:40 So just, to talk about some of the operational highlights within the first half of the year, this also includes some post period events. So across our proprietary pipeline within the diabetes and obesity space, We announced headline results earlier this year for eighty two seven eight. So this is our highly concentrated ultra rapid acting insulin. This was a study in type two diabetic patients with high BMI. So these are overweight and obese patients. And, this data was presented as a late breaking oral abstract, at a major diabetes conference in September, which I think demonstrates the and how meaningful this data is to that patient population and the prescribers across the endocrinologists as well there. And this means I can also talk today in more detail around that data and show you some of that data.

5:34 We also have initiated program in the oral GLP one space. We've partnered with TRX Biosciences here to co develop here a oral GLP one with improved bioavailability, and we have very promising early data from that program. And, again, I'll talk about that. AT3367, this is a fully funded collaboration with Medtronic that we entered into earlier this year, and this is where we're using the Aristat technology platform to develop a novel thermostable, so heat stable formulation of insulin that could be used in their implantable pump technology. And this is important because Medtronic are the largest insulin device company in the world today, and this is an important product for a very fragile patient population, but also shows our close relationship with Medtronic, and the potential there for us to further collaborate with them across our diabetes and obesity portfolio.

6:37 And then for Agluto, we're very much focused on accelerating growth in two key territories, and I'll talk about why. We've picked those territories, The UK and Germany. Now across our partner programs, draw attention to AT two twenty. So this is the first product on the market that incorporates the Aristat technology. So it demonstrates the, value that technology can bring to the table here, but also the approvability by the major regulators here. And this is now, returning growing royalty revenue streams to ARECOR under a worldwide royalty agreement. And we do have a very strong pipeline of what we call technology partnership. So this is where we're working on our major pharma or med tech companies' products here under that revenue generating model with that upside potential as they convert to royalties. And we're working with companies such as Eli Lilly, the largest pharmaceutical company in the world of Medtronic, as I've just spoken about.

7:37 Eighty two nine two is also a product under license, that incorporates the ARISTAT technology. Now this product, INHIBORTIS one zero one, was actually acquired by Sanofi, earlier this year and is now in a potentially registration enabling clinical study. So this could be the last clinical study prior to Sanofi filing for approval for this product. So that's getting much closer to market. And now under the leadership of Sanofi and their rare disease division, that increases the probability of this product coming to market and its success once it is on market also. And that's again is under a license agreement that brings both milestones and commercial payments post launch.

8:24 We also have expanded our technology partnerships here. So we have multiple opportunities for value creation and license conversions there and a strong pipeline of additional opportunities that are under active negotiation currently. Now earlier this year, at the end of July, we closed a successful pacing and subscription retail offer and raised 6,400,000 before expenses, and that was really for us to focus on doubling down in areas of r and d investment where we can return transformational values such as the oral delivery of peptides and GLP one. And we also appointed at the beginning of the year doctor Helen Paris as senior VP of commercial and also general manager of Tetris Pharma so we can really try the awareness and the sales of our key product Agluo.

9:16 So I'm now going to talk in a little bit more detail about a t two seven eight. So just to give some background to this product, a t two seven eight is a highly concentrated. It's a five times concentrated, standard concentration of insulin, but ultra rapid acting insulin. We've used the Arostat technology here to modulate and accelerate the absorption of insulin post injection. And the reason that we're developing this product is there's very much a need and we're seeing a growing need for people that are requiring high daily doses of insulin. And we're also seeing a move and a transition over to using insulin pump therapy. We know that patients do better on pumps. They have better outcomes, better blood glucose control.

10:01 But despite this in The US where we see the highest use of insulin pumps, still at less than forty percent of type one diabetics and less than ten percent of type two diabetics use insulin pumps today. And one of the main issues and the main barriers to use of these insulin pumps is their size and their duration of wear. So currently, they're used for and warm for up to three days before you wind up throw, the pumps away for the patch pumps, which are disposable or need to refill the insulin cartridges here. And and they and you can see the size of the insulin pumps here on the screen. It's very much a drive and a pull from the patient population, but also a drive from the insulin device. Manufacturers here to move to much longer wear, so we're talking about seven day wear, and to much smaller miniaturized pumps.

10:55 Now if you want to move to longer wear and also reduce the form factor of these pumps, then you need to be able to have, have onboard a highly concentrated but rapid acting insulin. This is a particular acute need in the type two patient population whereas we look in The US, on average now, they offer average type two diabetic that's using, insulin is requiring around a hundred units of insulin a day. And if we look at the patch pump, you can see on the screen here that can hold two hundred units of insulin. So these patients can't get to two day wear with the current insulin formats and size. So if we want to move those across the seven day wear as well, we clearly need some innovation on the insulin side.

11:40 So we very much see the future here around body worn, very small, longer wear devices and, being able to move more of these type two patient populations over to insulin, pumps, which will improve their outcomes and quality of life. Now in terms of market size, it's a significant market. The device insulin device market's worth around 5,500,000,000 today and is estimated to grow to greater than 500,000,000,000 by 2030. And there's a real upside opportunity in that type two diabetic patient market where penetration currently is less than ten percent. And the key here is that ARECOR has the only highly concentrated rapid acting insulin. It's a particularly difficult profile to achieve. As you concentrate insulin up, it slows down its time action profile, and that's, reduces those outcomes in terms of blood glucose control.

12:42 So I'm just going to move on to talking through the headline data from the recent phase one clinical studies. So here we were looking at comparing eighty two seven eight, so that's five hundred unit per mil insulin with Novo Nordisk, a hundred units insulin. It's called NovoRapid. And also then having an additional arm comparing with the only concentrated insulin that's available to these patients, which is a product from Eli Lilly and it's called human R U five hundred. So if we look at the data here, what we're looking at is the PKPD data for these patient populations. So on the left hand side here, we have the pharmacodynamic pharma pharmacokinetic even data. So this is basically showing you absorption of insulin in the blood post injection. So you inject at time zero, and then you measure the amount of insulin in the blood over time.

13:43 And what's important to note here when we look at a t two seven eight versus in the yellow versus Novo Nordisk, NovoRapid, which is in the gray here, we can see here that we have a faster appearance of insulin in circulation. So insulin in the blood, it appears five minutes faster compared to NovoRapid. And then if we look at this minus twenty four minutes, this is actually the half maximal concentration of insulin. So this is a very robust measure of how fast insulin is absorbed into the blood. And here we saw it's twenty four minutes faster to get to that half maximum concentration of insulin, which is, very significant here. I mean, what physiology would tell us here is as you concentrate up insulin, you'd expect its absorption to be much slower. So we've managed to counteract that effect with the Aristat technology and also develop a much faster insulin in terms of its absorption.

14:45 And then we saw this translate directly over to the pharmacodynamic profile. So this is essentially the glucose lowering profile. Again, we saw that initiation of glucose lowering was five minutes faster for eighty two seven eight compared to Nova Rapid. And, again, we got to that half maximum glucose lowering profile and twenty five minutes earlier compared to Nova Rapid. And then if we look at the, tables here, so this is the area under the curve. What we can see here in the first hour, so if we first look at the PK data, so with the AU one AUC naught to one hours, it shows us how much insulin is available on board in the blood. And we saw 48% more insulin available in that first hour with AT two seven eight, and that translated to a 66% greater glucose lowering profile in that first hour. And these results are very significant because this is a period of time where a person with diabetes has eaten food, their blood glucose has rise risen very rapidly.

15:51 You need to get that insulin on board very quickly and start bringing down that, blood glucose, into a healthy target range as quickly as possible. So these are very significant data. And this as well, just stresses in type two diabetic patients with high BMI. So these are overweight and obese patients who tend to be poorly controlled and there isn't a good treatment option available for them today. There are no other highly concentrated rapid acting insulins to help them control their bit of glucose. And just to talk a little bit around the data then compared with Humulin RU five hundred, so this is the only other 500 unit per mil insulin, so the same concentration as AT two seventy eight. So this is the pharmacodynamic data kinetic data here. And what you can see is Helium and RU 500 has this very long slow profile.

16:51 So it's quite slow to be absorbed, and then we see this very slow uptake of insulin in the blood. And then looking at the pharmacodynamic data here, you can see that again translates. We see this we've seen this very slow uptake of Humulin RU five hundred, and then it's very slow long profile then to, bring down that blood glucose. So this isn't a good mealtime insulin. It's not, reacting quickly to that rapid rise in blood glucose compared here, as you can see, to a t two seven eight, which brings is on board very quickly and brings down blood glucose, very quickly as well. So this, provides us data here and confidence that a t two seven eight could be that unique insulin that can catalyze the development of that next generation of insulin pumps, which are longer wear and miniaturized.

17:50 And also, I'm not showing the data today, but we've previously presented clinical data for AT two seventy eight also in type one diabetic patients. And again, here we showed superiority compared to, one hundred unit per mil insulin, Synovo Nordis, NovoRapid. So what this is telling us that AT two seventy eight, regardless of whether you have type one diabetes or type two diabetes and high BMI, is very effective insulin. In fact, it's a superior insulin in terms of its onset of action and glucose lowering profile. So in terms of next steps for AT two seventy eight, we have now two clinical studies, after a single injection of AT two seventy eight showing that superiority compared to the best insulins available today.

18:41 The next, step for this program would be to, conduct an insulin pump study. So this would be looking at a t two seven eight again compared to those best insulins, but when it's delivered via continuous infusion in a pump. We would use an existing pump for this profile. It's important so it can demonstrate compatibility with those pumps and also that we have that pharmacokinetic, pharmacodynamic profile that we would expect to see when it's delivered via this format. Now, for AT two seven eight, really, the future here is around that combination with a specific device here. So we are we have a number of strategic and collaboration discussions ongoing and co development partnering discussions ongoing, with device companies.

19:32 And, they are now, moving at significant pace since we've been able to announce and present the clinical data here showing the unique profile of a t two seven eight and how it can really fit with the device company's strategy moving forward as well. So I'm going to move track slightly and talk about the oral delivery of peptides and in particular our first program in terms of the oral delivery of GLP one. So this was a collaboration that we entered into earlier this year with TRX Biosciences. So TRX Biosciences have the lipid matrix, so the oral delivery matrix, which they've proven on small molecules. But the challenge here was with peptides in particular and with GLP-one that they weren't stable within this matrix. So this is a perfect combination of technologies here, the oral delivery technology and ARECOR's ARISTAT technology for stabilizing these peptides.

20:34 And in terms of the product concept here, as we know, I think everybody, is aware of the GLP ones and really the explosions of GLP ones. There's very high disease prevalence here. They've been shown and demonstrated to be highly effective both in diabetes indications, but, primarily in obesity and weight loss there. But despite this, there's relatively low treatment rates, here, and that's because they bring some challenges. So if we look at the oral GLP one space, there is only one oral GLP one available on the market today. It's a product from Novo Nordisk called Rybelsus. And the challenges with Rybelsus are that it has very low bioavailability. Has a less than 1% bioavailability, which means 99% of the active is not effective. It's lost, through that delivery.

21:25 And, also, it's, dosed directly to the stomach, which means that for this product, it's very strict dosing criteria that it has to be dosed on an empty stomach, which, the patient population, do not like here, and it it causes constraints around that use and adherence and the effectiveness of that product. So our target here is to develop an improved oral GLP one that has enhanced bioavailability and also to target that delivery to avoid the stomach to remove that strict dosing criteria here. And despite those challenges with that existing product Rybelsus, we saw in 2023, it has sales of 2,800,000,000 and already in the first half of this year, just over $1,600,000,000.

22:14 So it gives you a sense of the the market opportunity, here. And then if we can demonstrate effectiveness, for oral GLP one, this really then validates this as a potential to be a platform technology approach that we can, enhance oral delivery of peptides more generally. And there are a huge number of peptides in development today, or on the market that would benefit from a switch from an injectable product through to, oral delivery. And there's certainly very much a high patient preference for, oral delivery, so taking a single pill rather than, having to self inject, for example. Now in terms of status, the initial challenge with this program was could we stabilize the GLP one? We're using semaglutide here, so the same GLP one as in Rybelsus within the oral delivery matrix? And the answer to that is yes. We've developed here data and novel formulations that stabilize that peptide inside the matrix.

23:23 And we'd be expecting to enter nonclinical studies are animal proof of concept pharmacokinetic studies. So this is to look at the bioavailability of the GLP one during the first half of twenty five. And I think, you know, perhaps more importantly for this program is its potential really to expand out as a technology platform, which we know would be highly attractive to partners. Each time we we talk to a major pharmaceutical company, we're talking to them all the time, we're asked, do we have anything in the oral delivery space? It's a particularly difficult challenge to address, but it is a formulation challenge. And we know that, we've been able to develop enhanced formulations with enhanced properties that our large pharma counterparts have not been able to achieve. So we have a fantastic opportunity here to develop this platform and to transform this into significant value creation for the company.

24:22 So I'm now going to talk a little bit around Tetris Pharma and Agluo. So Agluo is a ready to use glucagon pen for treatment of severe hypoglycemia. So this is dangerously low blood sugar in patients. It needs to be administered by a third party. So the individual themselves, when they enter in severe hypoglycemia, are not able to treat themselves. And our focus here is on two main markets, The UK and Germany, as I've mentioned. So The UK ready to use glucagon market has a market value of around £18,000,000. On the market today is Gluo. We, launched our first year of full year of launch was in 2023 and a product called Glucogen.

25:08 So this is a product from Novo Nordisk. It's a, rescue kit. It essentially has a, a vial of lyophilized powder that requires a relatively complex mixing procedure prior to its use. You have to remember this is a highly stressful emergency situation. So there's benefits here in having a ready to use pen. It's it's like an EpiPen essentially for dangerously low blood sugar. And last year, we achieved 9% of the market by unit share. And, really, our focus now through the remainder of '24 and into 2025 is to drive awareness of Agluto in The UK market and drive that demand there.

25:57 And then Germany, is our second target market here. So Germany is a very traditional market. Prescribing is done by, maybe endocrinologists in that market. It has a value of around £9,500,000. Now the market dynamics are slightly different to The UK. There is one ready to use product on the market. It's called Baqsimi. It's a nasal glucagon product, that was launched back in 2019 and now has around 59% of the market share here. That was a product that was owned by Eli Lilly, but they sold that product to a US company called Amphastar. And we're anticipating within those agreements and that publicly available information that all of the responsibility for vaccinees to be transferred to Amphastar by the end of twenty twenty four.

26:48 And they, have very limited European footprints, and that potentially offers us an upside potential in that market, also there. So there's a significant growth market opportunity for Gluon. So just to talk very brief briefly about some of our tactics around Agluto here, it's really growth in our home UK market, and this is around gaining formulary approval. So we have a reimbursed price, and then it's around ensuring that IgLUO is on the formulas for the main groups of hospitals, so the integrated care systems there so it's easy for them to prescribe. And also to drive awareness there through conferences, etcetera, where the majority of the health care professionals and prescribers attend so that they're aware that this product is now available in The UK and they can prescribe that.

27:41 And then in Germany, as I said, it's very traditional market. So this is around, ensuring that the endocrinologists themselves and diabetologists are aware of the availability of the gluo. There's around 400, HCPs in Germany that relate to around 80% of the prescribing of the gluose. So there'll be our targets there to ensure that they're aware of the products and also to ensure that we have sufficient stock in demand in in country so that we can meet that demand for Germany and The UK. So just to talk at a a very high level around the financials here, we saw an increase in revenues, compared to the first half of twenty twenty three, a 20% increase, there.

28:34 We also, had a slight reduction in our investment in r and d, and this is in relation to the timing and number of clinical studies here. So our investments in r and d and this more significant investments were around the AT 278 clinical study, which has now ended. Now moving forward, as I mentioned, our future r and d expenditure is really to focus in areas where the Arasat technology can deliver transformational value creation opportunities, so very much in the diabetes and oral delivery of peptide space. And we're anticipating a strong second half of the year of increasing revenues there across our diverse and derisk portfolio.

29:23 So we have a a number of opportunities for revenue generation, not reliant on one partner or one product for that. So just to talk in a little bit more detail here, you can see we have royalties now and recurring royalties from 8220. That was actually launched at the back end of twenty twenty three. It's now available in major territories such as The EU and very recently in The US there. So, again, we'd expect to see continued growth and a strong second half for that program. And for the pharmaceutical products, so this is sales within Tetris Pharma. The sales of Agluto very much tempered in the first half of the year as we were managing stock there. We had limited stock available to us. We now have more stock on board post the recent fund raise, which allows us to, focus on that awareness campaign and driving that demand because we know we have the stock available to meet demand moving forward.

30:27 Now we had cash at the end of the year at the end of June of 2,500,000, but that was before the 6,400,000 fund raise, which that was before expenses. So we have a strengthened balance sheet. So, just looking at, what's coming up and some of the significant milestones. On the back of the, AT two seven eight clinical data where we demonstrated that superiority, we've seen an acceleration of pace of strategic co developments and discussions with device companies there. So we're exploring options both with device companies and also across grants, for nondilutive funding to progress that three day insulin pump study, and that's very much a study as we see as a major value accretion point for AT two seventy eight. We've seen that growing revenue stream from a t two '20, of course, sees a 100% margin as well, so it goes straight to our bottom line. And we'd expect to see continued commercial growth of Aglue, especially now we are able to invest in that stock, to have that stock in country and those awareness, campaigns across The UK and Germany.

31:45 We do have a pipeline of opportunities both in new licensing and also technology partnerships. So this is where we're working with pharma companies on their proprietary products. So we're confident through the remainder of, 2024 and certainly into 2025 that we'll be announcing new collaborations and license deals across that portfolio. As I talked about with the Aura GLP one, we're pretty excited by that program. It's a significant opportunity. And as I've said, we've cleared that first technical hurdle of could we simply stabilize the peptide in that matrix, which has been, a challenge that's not been achieved, broadly there, and then that opportunity to expand that as a platform technology.

32:31 So we'd expect to continue to see that year on year growth. As I mentioned, we'd expect a strong second half of the year for all of those dynamics that we've spoken about. But we, of course, continue to closely manage our cash, and that includes, in certain areas, a planned head count reduction, which will bring some annualized savings to the business as well. So, again, we have those growing revenue streams through partnerships, and these are partnerships with major pharmaceutical and biotech companies and a significant upside potential as we progress our diabetes and obesity, pipeline. So that concludes the formal presentation for today, but I'd be very happy to answer any questions.

33:19 Perfect. Sarah, if I may just jump back in there. Thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the top right corner of your screen. But just while the company takes a few moments to review those questions that were submitted already, I'd just like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can all be accessed via your investor dashboard. Sarah, as you can see there, we have received a number of questions throughout your presentation this afternoon. And thank you to all of those on the call for taking the time to submit their questions. But, Sarah, at this point, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so. And if I pick up from you at the end, that would be great. Thank you. Sure. No problem. So the first question is from Danny.

34:07 I'll I'll read it out, then I'll answer the questions. It says, what plans do the company have in light of the fact that the recent fundraise only raised enough cash for twenty four months? As we have seen by the share price reaction, the market hates the company that is losing money and in constant need of funds. Is it hope that a deal with AT two seven eight will produce the long awaited value inflection points that will shore up the cash flow cash flow within that twenty four month period? Yeah. So, you know, some background to that. In terms of the recent fundraise, as you note, that was to invest in r and d. So we're looking at investing in those transformational opportunities there, including the oral delivery of peptides and GLP one as well as to invest in inventory for and awareness campaigns for Agluto so that we can drive that demand and drive those revenue streams, from that key product there.

35:08 And, you know, through our market assumptions there, we've seen that that, that fundraise would provide cash for a two year window as you, as you noted there. I think there's a number of areas to note here. I think for ARECOR THERAPEUTICS, there are a number of opportunities for value creation across our portfolio. So there are diabetes products. And as I mentioned, for a t two seven eight, we're in very active discussions around strategic co development partnerships with device companies. There's very strong fit there between, you know, the device company's strategy strategy and how they see growing the markets themselves for those longer wear miniaturized pumps. And the fact is that that you have to have a concentrated rapid acting insulin, and a t two seven eight is the only insulin, certainly the only insulin with clinical data, that can meet that profile.

36:07 So there's some significant opportunities there, we believe, with a t two seven eight. Then for if we take the oral GLP one, for example, here, it's it's, you know, earlier in development here, but we have some promising initial data. And during the first half of twenty five, we'll be generating that, PK data. So we'll be able to have a read on not only if we stabilize this, but that bioavailability. So and I would anticipate that, you know, GLP one is very valuable in its own right. There's only one product available as I've spoken about with less than 1% bioavailability. So there'd be some significant operation opportunities for value creation there. And we'd expect any deals within that oral GLP one space to be significant.

36:57 Of course, these have then become quite binary, so it's it's difficult in your forecasting to include those. But, you know, relative to our cash burn, we'd expect a deal in that space to be significant and then the opportunity there to broaden that out as a platform technology that could drive near term partnering with pharma on their proprietary products plus the opportunity for ARECOR to select key products ourselves to develop further to that higher value inflection points as we're doing with the insulin products in the diabetes space. We then have growing revenue streams, of course, from AT two twenty. That's a that's a 100% margin product there. The partner company, as you know, I can't talk about them in a huge amount of detail, but they, you know, they're being pretty bullish in the market. They we're certainly seeing growth there. So there's some real opportunity to see that too and continue to grow and step up through those single digits millions of of revenue receipts.

38:01 And then there's a program which I I didn't talk about as much detail with Sanofi. I think under Sanofi's leadership now, and they acquired inhibits for over $2,000,000,000 for that product. It was that product only that they acquired. The others were spun out into a separate company, shows that they're highly motivated to conclude the clinical phase of that program and bring that to market. And and we we anticipate that could be on market at some point between '26 and '27. And, again, that brings a a revenue stream, to the business there and more security. So I think there's opportunities in that two two year cash way runway for us to convert additional deals that would significantly extend the cash runway and, you know, with significant send significant value to our shareholders.

39:02 I don't think there are any other questions, I don't think, as long as my screen's refreshing properly. Oh, hang on. Yes. There is. So this is from James. It the question is, you mentioned strategic discussions around codevelopment for a t two seven eight. Could you elaborate on potential partners and what these discussions entail in terms of timeline, geography, or co investment structure? So I'll say what I can around these. Obviously, the discussions confidential as well here. So if we look at the dynamics in the insulin pump space, you know, there's really, you know, five companies that we would consider that that could be, you know, good partners and and would have motivation to partner with ARECOR on AT two seven eight. So you have the incumbents and the the large device companies that are already on the market and sharing that kind of $5,500,000,000 market today. So companies such as Medtronic, who, of course, were partnered with as well developing an insulin for one of their implantable pumps, and Insulet, who have the only patch pump, and, Tandem as well.

40:34 And then you've got the and they're really all competing with each other in terms of market share and patient populations. And they're all very, you know, publicly talking about the fact that they they see that type two patient population as underpenetrated, and they want to move more patients over to that and also around their, targets around longer wear time for the insulin pumps. And then you've got the, the new companies coming onto the market. So there are two companies recently that have gained approval for insulin pumps and in the process of launching in The US, called Modular Medical and, Sequel. And they're really their motivations are around they're looking to grow the market, but also take market share from those incumbents and looking at ways that they can disrupt the current models and innovate there to to do so. So there could be some motivations there in terms of leapfrogging their competitors and bringing a, you know, next generation insulin pump to market.

41:40 And, really, the nature of the discussions around we'll move forward into the next insulin pump study with one pump. We, you know, we need to select a pump for that study. So there's advantages to any company that partners with us at this stage that will be generating clinical data within their pump, and they're also getting closer to ARECOR as a company, of course, there. So we're really discussing codevelopment structures. So that would be skin in the game. We'd expect some, you know, investment from those device companies for that. But I'm really keen at this stage to have those as nonexclusive partnerships here. We want to be able to I think the data in the insulin pump is a major value accretion point there, and we want to be able to maintain that competitive tension and really be able to then drive and return the best deal value to our shareholders.

42:43 So the next question is from Charles. Says, I regard ARECOR's business model as attractive. However, the A market has changed a lot for loss making technology companies since your IPO in 2021. Have you seen the need to change capital market strategy to adapt to the current UK landscape for such companies? Yeah. I mean, I think for ARECOR, obviously, we've post the IPO, we've raised twice on the AIM market. So we did a small raise at the back end of twenty twenty two for the acquisition of Tetris and then working capital of of 6,000,000 and then the recent 6,400,000 pre fees associated with that to invest in r and d and the glue. So we have been able to access capital on the market. So I think, you know, what we're seeing at the moment, and I think across the board, what companies are seeing at the moment is there is a bit of a disconnect between, the company in terms of the health of the company news flow and inherent value in the company and and share prices at the moment. That's that's no doubt, around that. But I think for us, it's around focusing on what we can control here and really ensuring that we execute here and that we can realize the potential value from our proprietary pipeline, particularly in that diabetes and obesity space

44:13 and, you know, generate those transformation and convert those transformational deals, for the business. And I'm sure then we we would see, that reflected. So I think there's another question from Christopher. He says, how will the recent 6,400,000 raise be allocated between advancing r and d, technology partnerships, and expanding the Gluos sales through Tetris Pharma? What specific areas do you expect to drive the most significant? Think it says most. Sorry. It's falling off the screen. Yeah. To drive the most significant value inflection.

45:00 So, yeah, so in terms of that use of proceeds, about half of that, just over half of that's investment in advancing r and d. And this is really around, as we talked about, the oral delivery of peptides and the GLP one, programs there is an area that we're really focusing on. In terms of those technology partnerships, they essentially, in terms of that development phase and ARECOR THERAPE THERAPE ARECOR THERAPE THERAPEUTICS, AND THERE'S THE UPPOSITE POTENTIAL FROM LISTENING. So that's very low risk area of the business for us as long as we keep at the right cadence of programs coming in, which we, we we've been able to do year on year because the value that technology can bring to the table.

45:54 And then, the other half around 2,700,000 is for investment in Tetris, and that's really the majority of that is in in investment in inventory, which would, of course, match with demand there to ensure that we're managing those working capital cycles appropriately. So, you know, we'll match that inventory as the the sales are are pulling through. In terms of areas that I'd expect to drive most significant value, I mean, in terms of near term value, there's obviously those those revenue streams that we're gaining through partnerships that we've already entered into and licenses that we've already entered into. And that's low risk revenue generation there with products on the market incorporating the ARRESTAT technology.

46:40 It's just a case of how successful are our partner companies, how quickly do they, increase product sales within the market. But, of course, there's no no risk to ARECOR THERAPEUTICS. But I see the most significant value inflection points there and, you know, the most significant, products that we have would be, twofold, really. I think there are insulins there in eighty two seven eight and this real transformational opportunity in insulin pumps. And the oral delivery of peptides is technically difficult, but we know it's a hugely sought after profile and product profile. If we're able to achieve that, then I'd expect to be able to return transformational value to the the business there through partnering with pharma in that area.

47:33 So a question from Danny. It's any news on a CFO. So you may have seen in our, in our results there that we were at the late stages of appointing a a permanent CFO, but for a set of fairly unusual circumstances that were out of our control, not related to, our core business at all, where that candidate had to withdraw from the process. So in terms of next steps, you know, we've been going through a very rigorous search process here. So we, you know, we have a a short list of candidates would be to, appoint an interim CFO, so that we have them in place, and managing, obviously, the financials of the business and certainly coming up to year end whilst we take the time to continue to ensure that we get the right permanent CFO on board there, but we'd have sufficient coverage then across the business with the interim as well.

48:35 Perfect. Sarah, if I may just jump back in there. Thank you very much indeed for being so generous of your time then addressing all of those questions that came in for investors this afternoon. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended just for you to review to then add any additional responses, of course, where it's appropriate to do so. And we'll publish all those responses out on the platform. But, Sarah, perhaps before really just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, I could please just ask you for a few closing comments just to wrap up with, that'd be great. Yeah. I mean, I think in terms of ARECOR, we remain really confident on the outlook moving forward. There's significant opportunities as we've spoken about today for value creation both across our diabetes and obesity platform and our partnered portfolio as well. And with multiple opportunities here not being reliant on a single product or a single partner here, which it really is that kind of diverse and derisked, strategy there. I think moving forward, we we expect strong news flow through the remainder of 2024 and 2025 in terms of new partnerships with pharma and licensing.

49:51 And, of course, as and when we can, we'll come back with a with an update around those co development discussions with device partners, which is, say, a gathering pace now since we were able to announce and show a very positive clinical data. So we have momentum now, and I expect to see that continue to to build throughout the year and look forward to coming back and talking to everybody once we've we've inked some of these so I can, give a little bit more detail. Perfect, Sarah. That's great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected to the opportunity to provide your feedback in order that the management team can really better understand your views and expectations.

50:38 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of ARECOR THERAPEUTICS PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.