Arecor Therapeutics plc has bought all of Tetris Pharma Ltd shares adding a key commercial diabetes product to its portfolio.
The company says as well as expanding its portfolio, the acquisition of the entire issued share capital complements its existing hospital products franchise and will speed up its revenue growth.
Tetris Pharma has a sales and distribution team and a platform focused on injectable products across the UK and Europe.
Sarah Howell, CEO of Arecor, said: “The Board of Arecor believe that the acquisition of Tetris Pharma is a compelling opportunity to accelerate Arecor’s commercially-driven strategy alongside our core diabetes and partnered products businesses.
“We will gain an existing, revenue-generating, sales, marketing and distribution platform which we believe is highly complementary to our existing specialty hospitals products business and has significant growth potential.”
Howell said the lead product, Ogluo, meets a key patient need for people living with diabetes at risk of severe hypoglycaemia, which is a therapeutic area Arecor understands well, giving them confidence in its prospects and ability to deliver.
She added: “In addition, the platform would add future optionality to our specialty products franchise by providing the capability to take selected products to market in the UK and Europe where appropriate in addition to our already proven partnering strategy.”
It is a proprietary ready-to-use glucagon indicated to treat severe hypoglycaemia, a potentially life-threatening condition, in people with diabetes. Tetris Pharma is targeting a significant market share within an existing circa £100 million+ ($122 million+) market across the licensed territory. Ogluo was launched by the company in the UK earlier this year and launches across key European territories are planned over the next 12 to 24 months.
Arecor believe the acquisition will also enhance interactions with diabetes key opinion leaders, patient groups and payers for the benefit of both Ogluo and its lead proprietary diabetes development products, AT247 and AT278
It said it anticipated a positive cashflow contribution from Tetris Pharma with Tetris Pharma expected to break even within about three years from completion of the acquisition.
Tetris Pharma generated initial revenues of £600,000 ($735,000) – unaudited – in the six months to 30 June 2022. The directors believe that there is potential for significant revenue growth as Ogluo roll-out progresses
The company says there is no change of strategy in relation to Arecor’s lead diabetes products AT247 and AT278.