Arecor Therapeutics plc

Good morning and welcome to the Aracool Therapeutics PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I'd like to submit the following poll. And I'd like to hand you over to the executive management team from Aracool Therapeutics PLC. Sarah, good morning.

Thank you. Good morning. Good morning, everybody. Thank you for taking the time to join us today. So my name is Dr. Sarah Howell. I'm the CEO of Arakor Therapeutics, and I'm joined today by David Ellen, our CFO. We'll be talking through the full year results to the 31st of December 2025. So our customary legal notice. So at Zara Core, we're very much focused, just as a quick recap, we're a clinical stage biotech company, as you know, and we're focused on developing superior therapeutics that can reduce treatment burden and improve outcomes, specifically for people living with diabetes, obesity, and other cardiometabolic diseases. Our focus is very much on two core product areas, being in the diabetes space and the oral delivery of peptides. And these are areas where there's significant unmet patient need that we're aiming to address with our superior products in high multi-billion dollar growth markets. So our lead program is our best-in-class insulin, AT278, so this is the only ultra-concentrated ultra-rapid-acting insulin in development. And it's been specifically designed with this profile for use in next-generation automated insulin delivery systems. And I'll talk a little bit more just as a reminder around what we mean by automated insulin delivery system and our algorithm and aid systems. We're also exploring a next-generation drug delivery platform for ill-delivery peptides, where very poor bioavailability, less than 1%, is the drug delivery challenge that we're looking to overcome. So the AT278, in terms of high-level status, we are very busy preparing for the phase two clinical study, which is all on track, and that's with our partner, SQL MedTech. And again, I'll talk about our partnership with SQL MedTech in much more detail. And then for the oral delivery of peptides, our focus now is on generating that key non-clinical pharmacokinetic data, which is essentially assessing the bioavailability, which is the challenge that we're looking to overcome. And those studies are ongoing and through the course of the second half. of this year. And both of these product areas, of course, are underpinned and leveraged. We're leveraging our innovative and proprietary Alistat formulation technology platform here. We also continue to partner with leading pharma and medtech companies. So we have partnerships. And as you know, we previously announced with companies such as Eli Lilly, Minimed, who are actually now the diabetes division that spun out of Medtronic, they IPO'd earlier this year, and also Ligand Pharmaceuticals, amongst others, they're the companies where we've been able to publicly announce their names. So now I'm going to move on to talk a little bit more around our operational highlights here. So around AT278, obviously our need program there, we signed a co-development partnership with SQL MedTech last year, around September time last year, where both companies are co-funding all of the phase two enabling development activities. required for us to file for an IMD so to file for clinical trial approval with the FDA in the US and we also have very positive and what's called a type C advice meeting with the FDA, this is where we presented our phase two clinical plans or protocols for that study. and also the data package that we intend to submit under our R&D. We have very positive feedback from the FDA there, so we're very confident there around that clinical study design and its improveability to be able to perform that study, which would be a US-based study. Importantly, as part of that co-development deal, both companies, so both ARACOR and SQL MedTech, have confirmed their strategic intent to enter into a broader agreement that would be for phase two clinical development through to commercialization. And the terms of that deal are at a very advanced stage now of negotiation, so we're confident around moving forward and entering into that next phase of that deal, which is very important for us in terms of taking AT278 forward. Then on the oil delivery of peptides, programs were initially focused in the GLP-1 space, and I'll talk a little bit more around why we focused on GLP-1 there. We've generated initial positive results stabilizing the GLP-1 or stabilizing that peptide under the very harsh conditions that it needs to survive. And we filed new IP in that area. So that's a very positive first step. We've overcome that first challenge and obviously filed our IP so we can start to protect that space. And as I mentioned earlier, we're now focused on improving bioavailability in those animal PK studies. On the financing side, we entered into a royalty financing agreement with Ligon Pharmaceuticals. It's raising $11 million of non-diluted funding, of which we received $7 million up front. And we've subsequently this year received a further half a million dollars, which is part of the $4 million in CVRs. So we have an additional $3.5 million in CVRs related to that royalty financing agreement that are obviously related to certain commercial milestones. and they all remain on track. So this has really strengthened the balance sheet for our core and allowed us the time, essentially, to negotiate the best deal that we can enter into that next phase of development for AT278. So we're doing that from a position of strength, which is very much our focus now. So we have a very strong corporate and financial position, and now I'll hand over to David to talk about that in a little bit more detail.

Good morning. So the key message that we have today is that we have secured a cash runway to Q227 that allows us to focus on two core areas, the AT278 insulin and the platform for the oral delivery of peptides, and specifically to be able to close a co-development and commercialization deal for the insulin AT278. starting with the income statement revenues have increased by 0.1 million with that increase being down to formulation revenues and obviously the most sort of standout item on an enl is the other income 5.5 million 5 million of that was the gain on the sale of royalty rights to ligand there was also at 0.3 million being our deck r d tax credit income and 200 000 of recharging to SQL MedTech under our existing co-development agreement. Operating expenses decreased by approximately half a million pound. We had a small decrease you can see in the G&A expenses on the corporate side, and then R&D expenses down 0.4 million. Some of that is because within 2024, we had at the beginning of that year, costs remaining on the phase 104 phase one for 8278 none of that in 2025 that we have started the phase two pre-enabling costs for 8278 already profit or loss for the year 0.9 million and then below that the loss for the year discontinued operations so that is for the tetris business where we ceased operations in september Within that, we had a gain of $0.4 million when we sold the rights to the non-aggluo products to Aspire Pharma, and the numbers for last year were impacted by the $3.3 million impairment overall on the Tetris business. Next page, please. So we finished with the year end cash of just over 6 million. Obviously, the largest element towards that was the sale of the royalty rights, where we received 5.2 million up from proceeds from Ligand. And we have received another 500,000 already this year in dollars, and we expect to receive another half a million dollars before the end of the year. Net cash used in operating activities for continued operations was 3.1 million pound. which was greatly decreased from 5.7 million in the previous year. As mentioned, this all works towards extending the cash runway to the second quarter of 2027. And then just lastly, on the discontinued operations, then we generated cash of 0.7 million, whereas the prior year we used cash of 3.6 million. And that all comes from no more purchases of inventory and collecting all the receivables on the Tetris side of the business.

Great. Thank you, David. So I'm going to move now to talk in a little bit more detail around our lead product asset, AT278. So I'll run through this relatively quickly, because I would imagine a lot of people on the line today will be very familiar with AT278. Essentially AT278, we've taken existing insulin, so insulin aspart, which is used in Novo Nordisk, insulin, and we've developed the first and only ultra-concentrated, so it's a five times concentrated insulin, five times those standard concentrations for best-in-class insulins available today, and importantly, ultra-rapid-acting insulin. We've developed... demonstrated superiority in its pharmacokinetic and pharmacodynamic profiles. So this is essentially getting insulin on board post-injection very fast and that translating into a very fast and greater glucose lowering profile compared to those best-in-class insulins available today. And we've gone head-to-head in those studies. And we've demonstrated that in both type 1 diabetic patients and also high BMI type 2 patients. So the whole of the addressable patient population, which of course significantly clinically de-risks AT278. And as I mentioned earlier, it's been specifically designed for using these automated insulin delivery systems, which is essentially where the patient will wear a continuous blood glucose monitor, which measures their blood glucose levels and continuously In real time, those measurements are fed to an algorithm which calculates how much insulin is needed to keep that individual inside their target blood glucose range. And then that's automatically delivered via the insulin pump. And all this technology and systems, as you know, exists today and is on the market, including via our partner, Secor Mentec. So I think it's important now to talk around what are the needs, why are we developing this highly concentrated, rapid-acting insulin? Well, it's very clear from a patient perspective. Patients are looking for, when we look at AID systems, there's a whole wealth of data out there, real-world clinical and outcomes data showing that people with diabetes that require insulin have better outcomes, they have better blood glucose control and outcomes, if they're using an AID system. But despite this, there's still relatively low penetration. And I'll talk about those penetration rates shortly. So the question here is, how can we reduce that burden and lower the barrier to use for these AID systems, which will then ultimately lead to improved outcomes for the patient population? What patients are looking for is they want to reduce burden. It's still a relatively high burden to use these AID systems. They want to be able to wear their insulin pumps for longer. Current standard of care is three-day wear, after which time they need to switch out their insulin. They might need to throw away a pump if it's a disposable patch pump, refill that. apply a new pump, which means lots of different infusion sites as well, every three days. So they want to be able to wear them for longer. They want to fit and forget, essentially. And they would like them to be smaller. They're still a very visible indicator. They wear these pumps, a visible indicator that they're living with a chronic disease. Of course, if you want to have smaller pumps or you want to wear these pumps for longer, it means that you need to be able to get more insulin on board in a much smaller volume or a much smaller space. And AT278 is the only highly concentrated, rapid-acting insulin that can achieve this. There's also a subset of the patient population, and I'll talk today around some of the numbers here, that have high insulin require high total daily doses of insulin. So we characterize this patient population as needing more than 100 units of insulin a day to control their blood glucose. And this means with the standard insulins that are available to them today and the current pumps that are available to them today, they can't achieve three-day wear time. They can't get to three-day wear, which is the standard of care, without running out of insulin, which means it's not practical for them to use AID systems, so they're simply not using them and they're using multiple daily injections. In terms of improved outcomes, and I've talked about this a lot in the past, is that to improve outcomes we need much faster-acting insulin, that you enable us to be more aggressive with those algorithms, which essentially means that we can drive and control a higher time and range here. and more tightly control blood glucose and improve that time in that healthy blood glucose target range, which ultimately leads to better outcomes. And all of this needs to be delivered clearly in an ecosystem that's cost-effective for both payers And patients, which is where AT278 has an advantage because we're using existing insulin and existing infrastructure there. This is not a novel therapeutic in development. So these are very much the needs that all can be addressed with AT278 with its profile. So just zooming in and looking a little bit more around this longer wear, so very much the device industry and the insulin pump companies are moving towards longer wear. There are two insulin pumps that are approved for use for seven days, and the other insulin pump companies are performing studies and looking to achieve this seven-day label. But the challenge that they have is, with their existing pumps and their capacity for insulin, and only 100 unit per mil, so low concentration insulin being available for use in these AID systems, is that a large proportion of the patient population cannot get to seven day wear. So if we look at the type two patient population, IIT is essentially insulin, intensive insulin therapy. So these are candidates for AT278. Nearly 50% of that patient population can't achieve that current standard of care of three-day wear, so they're simply not using AID systems. But as we see these pumps moving to seven-day wear or even beyond that, almost all type 2s would run out of insulin before they get to seven-day wear. So seven-day wear is simply not achievable today for that type 2 patient population. without a highly concentrated insulin. As you can see here on this heat map with AT278, which is U500, almost all type 2s would be able to achieve 7-day wear in the current ARD systems. And it's not just a type 2 problem. If we look at the type 1 patient population here, just over 50% of the type 1 patient population cannot achieve that 7-day wear with those current insulins, U100, that's Novolog, Humalog, and all of them would get to 7-day wear with AT278. at a 500 unit per mil concentration. So it really does allow us to open up that access to more people living with diabetes regardless of their daily insulin requirements. And then if we look at this in terms of patient numbers and market size opportunity, this is looking at the US and US is very much the first launch market here. So in the US, there are around 4 million people with diabetes that are on intensive insulin therapy, so they're an addressable patient population. And of those, around 1 million require more than 100 units of insulin a day. So this is the patient population that currently are not using AID systems, they're not practical for use for them, and they're also not reimbursable because they would simply go through too many pumps and too many consumables. And then there is approximately a million further patients who are currently using AID systems, but they're looking for longer wear, they want smaller pumps, and they want better outcomes, of course, and control, all of which can be achieved with AT278. So if we look at that 2 million initial patient population, so we'd see these as first adopters, and take the current net pricing of insulin in the US. And that's over a $3 billion market opportunity for AT278. Then there's additional growth opportunities as you look at further miniaturization. It caused more of that 2 million patient population you see on the right hand side here over to the left. If all of the patients in the US were to switch to an AT278 or switch to AID therapy of insulin, it's around $5 billion TAM opportunity. And with AT278, we're looking to achieve significant market share within this multi-billion dollar market opportunity opportunity. And then if we zoom out and look at the AID growth, so this is actually the insulin pump market and insulin pump sales, not insulin revenue here. And we can see, despite these challenges in terms of the requirement for a concentrated rapid-acting insulin, it is growing year on year. We're seeing more and more people moving over to AID systems because they get those improved outcomes there and this is where we're really looking at and in partnership with the ARD companies really to open up further access because despite this growth in the US ARD systems are still used by only 40% around 40% of the type 1 patient population and only 5% of that type 2 patient population and the real challenge for the type 2 patient population here is that they generally have higher total daily dose requirements, which means that these AID systems are not practical and accessible to them today. So there's a real opportunity to open these up and open up the market using AT278 in combination with an AID system. And on this front, as I mentioned earlier, we entered into an initial co-development partnership with SQL MedTech. So both companies have committed $1.3 million to conduct and complete those phase two enabling activities that are required us to file for approval so to file an imd for approval for that phase two clinical study with the fda so very much showing both companies commitment there is also financial commitments of course here and that's strategic intent for us to enter into this phase two and beyond co-development and commercialization deal. And as I mentioned earlier, this is advanced stages of negotiation now. We're very confident entering into this next phase of the partnership, which will enable us to commence that phase two clinical trial during the second half of 2026. So just to take a zoom out and a little bit further around what's the regulatory development pathway to market here. So, as I mentioned, the activities for the Phase 2 clinical study are ongoing and on track here. We have very much confidence around that Phase 2 clinical study design where we would be comparing AT278 when delivered by an insulin pump and continuously over a six-week period using the twist, so SQL MedTech's twist pump, and comparing against Novoloft, so this is Novo's best in class rapid acting insulin, but it's only available at 100 units per mil, so 80 to 75 times concentrated. And there'd be around 90 subjects in that clinical study. And then we anticipate a requirement for a phase three clinical study. We have modelled this based on what our large pharma counterparts done in the past for approvals of reformulations of insulin so six-month crossover study, again, comparing with AT2782 Novolog, and then a six-month open label period. This is essentially where you continue to provide the drug for use for a further six-month period, and you can gather that data. This is a relatively conservative approach here, and we'll most certainly be looking to work with the FDA to see if there are any opportunities To further accelerate this phase three clinical study in terms of its duration and number of subjects with the areas that we would focus on and, as it stands, that would lead to attention for marketing authorization in 2030. So just to really recap for AT278, obviously the non-diluted funding that we talked about earlier with Ligon, the strength of our balance sheet has enabled us the time and that balance sheet strength to support this next phase of strategic deal making with Seagull Megatech and our focus. is very much an entering into the best deal that we can with SQL in a timely manner, obviously pace here and timeframe to market is key already. All of those phase two enabling studies are on track here and we intend to initiate that phase two clinical study during the second half of 2026. So just moving on to the oral delivery of peptides. So I want to talk a little bit around the challenge and why we see this as an ideal challenge for the expertise and the Amazon technology platform that we have here at our core. So, you know, all peptides are generally an important class of therapeutics. There are over 800 of them in development, clinical development now today. Many of those in this cardiometabolic space, and I'm sure everybody's seen those, particularly in the obesity indication as well. But despite this, there are only a very small number of orally delivered peptides on the market today. And that's because they suffer from very low oral bioavailability. And the challenge here essentially is when you try to deliver a peptide orally, so you're looking at a capsule here, it has to go through very harsh conditions through the GI tract and into the stomach. It's harsh pH, it has a very low acidic pH. We have all these digestive enzymes which essentially degrade the peptide itself. So they're degrading the active therapeutic. ingredient that we require here to be delivered to the cells and to be active here. So that's challenge number one. And as I mentioned earlier, that's the first challenge that we've overcome is stabilizing GLP-1, which is where we started systemic glutide in these very harsh conditions and we filed IP in that area. And then the second challenge here is then getting the peptide across the absorption barrier here and into the cells and the only and thing that's worked today for the only area that's seen any success and it's incorporated into those peptides that are all peptides that are on the market today is the so-called permeation enhancers here. But the challenge here with the permeation enhancers are again, under these very harsh conditions, these acidic pHs, that they're crashing our solution, that they're not soluble. So again, you end up with very little of these permeation enhancers in solution, enable to cross these absorption barriers and essentially shepherd that peptide through into the cells. And that's why it results in this very low bioavailability of less than 1% for these already delivered peptides. And that's why we're very much focusing now. So we're using our ISTAT formulation technology and expertise here to protect and stabilize the peptide. So we've got some novel formulation approaches there and also then to keep these permeation enhancers soluble as well so that they can encourage that uptake in the cells and improve that bioavailability and some you know other clever formulation tricks that we've got within this matrix which obviously I won't talk about today but will be within our IP filings here. so in terms of where we're at we're obviously starting with GLP-1 here we've had those positive initial results we've filed the IP and now we're generating that non-clinical pharmacokinetic data so that bioavailability data here. If we can show success in the animal PK studies, so this is very much coming to show improved bioavailability when compared to ribelsis. So that's all semi-glutathione that's on the market today, which has less than 1% bioavailability. And that's really highly translatable to other peptides. And from a business commercial strategy space here, this would then offer us the opportunity for more transformational partnering with pharma here. We know there is a high appetite all delivery technologies for peptides we know scientifically it's a challenge that nobody's really cracked to date here and that would enable us to partner with pharma and proprietary and peptide assets within their portfolio which currently without a delivery technology will be developed as injectable therapies but we know there's a high patient preference but all delivery there. So that would enable an open up and partnering within a multi-billion dollar market opportunity for our core. And I think as we can see in the space, I mean, we update this slide as new deals come through and the new deals all the time, the most recent Novo Nordisk with Biftex there and licensing some Oral delivery technologies there, but it's a really active space here. There's a huge number of efforts ongoing in terms of trying to develop technologies and improve viability, so we are in a race here. Of course, this is a formulation drug delivery challenge, and this is our USP where we've been able to demonstrate over the years and validate that we can deliver enhanced formulation and drug delivery technologies that even our large pharma partners have not been able to achieve themselves. And there is high appetite in this space, clearly. So I think if we look forward in terms of summary and outlook, clearly for AT278, we have a very unique and the only highly concentrated ultra-rapid acting insulin in development. It's clinically de-risked as we demonstrated superiority to those best in class. Insulins available today, both type ones and type two patient populations. As we've spoken through today, there's an initial US opportunity, market opportunity that translates to an over $3 billion insulin revenue opportunity with growth opportunities both within the US, but obviously upside ex-US as well. And it's really around catalysing and opening up access that next generation of AID systems, which will be longerware, smaller, and really continuing to improve that time and range to those clinical outcomes for the patient population. Importantly, we've partnered with a commercial stage insulin pump company, our AID company, Sequel, MedTech, and confidence in terms of entering into that next broader strategic deal for phase two and beyond. As I just mentioned with the oral delivery of technology, peptide technology platform, we've overcome that first hurdle, stabilizing the peptide, now focused on that oral viability in those PK studies and significant upside potential there if we can be successful. And what I would note as well in terms of investment here, It's very low capital investment and resource investment at this stage. to get to that PK proof of concept point. These studies are not expensive to run. They just take time, fortunately, and there's a series of iterative studies that we need to do there. And it's the scientists at our core, in-house scientists doing what they do best and being creative here around formulation and drug delivery technology. So low capital investment, but significant upside potential so in terms of what to look out for obviously the next phases of our strategic partnership for AT278 for phase two and beyond then leading into being in a position to initiate that phase two clinical study that of course is subject to funding we're looking at co-development and commercialization deal structures here with SQL MedTech so our course needs to be in a position to be able to fund its proportion of that co-development, and also that key pharmacokinetic data for the oral delivery of peptides platforms, which will inform our next development steps, broadening out on success there with broadening out to work peptides, and also partnering opportunities with pharmaceutical companies. So that draws the formal part of the presentation to a close today, and I'd be happy to take any questions.

Thank you both for updating investors today. Could I please remind investors to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. And for your reference, a recording of today's presentation will be available on the Vestami company platform shortly after the meeting has ended. Sarah, David, as you can see, we received a number of questions during today's presentation. If I could just hand back to you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Sure. Thank you. So the first question is, I'm just going to read it out in full, as I always do, as you know. So given that the share price is around 29% of the IPO price, what fundraising options are being considered for the upcoming AT278 trial? Are any non-dilutive options on the table? I was especially pleased with the previous non-dilutive fundraise. So maybe I'll start on that and I'm sure David will have some additional detail there. I mean, you know, obviously in terms of amounts required here ultimately depends on the final structure of our deal with SQL MedTech. But I think as we signalled and certainly with the first deal that we've done with SQL to allow us to conduct those phase two enabling activities, it was on a a co-development so that was a 50 50 funding basis so it's you know it's on that co-development basis that we're moving forward now in terms of those deal negotiations there so you know options available to our report of course on funding would be um you know traditional equity funding there obviously um all of our shareholders would be eligible to participate in that. So I would note that with the changes to the VCT guidance now, we are able to take advantage of that. So that increased cap now to $40 million, where it's pretty, pound, sorry, I've been talking to US parties too much recently, 40 million pounds relative to the 20 million previous cap. So, you know, this is important to note that, you know, our entire shareholder base would have the opportunity to participate should they wish to there. So that's obviously one opportunity. Of course, other areas such as non-dilutive funding, we continue to explore all areas and all opportunities there. We obviously spent a lot of time on that last year, really understanding the landscape for non-dilutive royalty financing and have built relationships there across that um ecosystem there so you know we'll consider all of those options so our priorities here are to enter into the best um you know the best deal with sequel and to um be cognizant and mindful of value share there and retention of value for our core and its shareholders and then lastly of course around that um kind of fundraising you know we're conscious of the um the current share price, of course, and any impacts or effects of dilution. Sorry, David, I actually said more than half. So if you've got anything to add. Nothing to add. So I don't know why it's moving the slides as I'm moving. Hang on. And so the next question is the recent patent application book to include some very exciting looking graphs of bioavailability for tested peptide. It looked like several percent. Any comments? I mean, the first in terms of that first IP where we're really focused is around stabilizing that peptide and also which was our first challenge and that's IP around then composition of matter and formulations to protect that peptide. In terms of the bioavailability, we're still very much assessing that and assessing because that's a combination of how do we improve bioavailability and it's got to be in formulation matrices, of course, that are scalable. within manufacturing as well. So we haven't at this stage filed specific IP around that bioavailability. Obviously, as we generate that data through the second half of the year, we'll be looking to assess that, where is our bioavailability compared to those commercial benchmarks, in this case, Rebelsis. So it's a little bit of a watcher's space for that one. And then this question around when would we expect to see the first data from the oral peptide delivery program? So that's very much the data that we'll be generating through 2026. Of course, it is iterative data, so it partly depends on the duration of these and when will we have an understanding on our go, no-go point, pivotally of are we improving by availability? or not here is really each study informs the next so it's actually difficult to say and put an exact that we expect to be by this time frame but we certainly expect through the course of the year we'll be generating you know a significant body of data here so we'll be able to say much more about this as we go through the year and through the second half of the year. And then I think the next question is, how are you balancing early partnering to de-risk development versus advancing programs internally to capture greater longer term value? So I think if this is not really the question, please add another comment. I think what this question is asking is around The balance of the tech partnering, which is fully funded by our partners. So those three pre-licensed partnerships, such as the partnership we have with Eli Lilly and Minimed, for example, where they are paying the development dollars to access our expertise with developing novel formulations of their proprietary assets. under those agreements, which are fully paid for by their partners. And then there's the upside potential, of course, on licensing, should they then decide to take those forward in development. So we very much, we have a team, a small team internally focused on that. So they're focused on both bringing in those programs, but also obviously working on those and working on the development of those novel formulations under those programs. That's certainly ongoing and it's still ongoing there. We have a number of programs already partnered and contracted that we're working on that have that upside opportunity as we go through that development. And we would expect to bring new programs in. But to be clear, the focus is certainly the senior focus within the business is quite rightly on those two core product areas because the value creation opportunities, particularly if we look at AT278 now being clinically de-risked, And an opportunity in a very large market with a US partner really does offer the longest and the largest value creation opportunity for our core and our shareholders. so the next question is how are discussions with sequel progressing when are we likely to see a deal for the phase two good question and they're progressing really well i mean when we say we don't take it lightly to say um that we're in a fan stages of negotiation and you know obviously these these are areas that we discuss at the board as well are we all comfortable and keeping the ties on this that it's right to stay advanced stages of negotiation. And that's a unanimous yes from both myself and David and the board here that we are genuinely in advanced stages of negotiation here with Sequel Medtech. So we are confident of moving forward on this deal. Really, it's around now. It's fine-tuning. We're into the real detail around... you know, value share here and how do we have a fair value share when all parties are motivated and that we retain appropriate value for our core, for the proprietary, you know, products that we're bringing to the table here. So that's very much where we are now. It's really into the weeds of the detail but we are confident and moving forward and confident of them being in a position to initiate phase two clinicals in the second half this year so that gives you a sense of that time frame when we're not intending to be negotiating and this deal through into 2027. So there's a question here around, do we consider, because of the share price currently and certainly since IPO, do we consider Aricor to be suitable for public markets? obviously the focus of our core is is very much on these near-term value drivers so we've got significant opportunity here to drive value for the business i believe that we value driven by entering into this next strategic Co-development and commercialization. So this also gives a route to market with a commercial stage US company who have a commercial sales force. And I think that would create value and then enable us to go to that next value inflection point on phase two clinicals, as well as that upside potential from the oral delivery of peptides we obviously would always look at all strategic options for the business and make sure that we make the right decisions for the business at the right times to maximise the value and that opportunity to return for our shareholders. David, I don't know if there's anything you want to add on that one.

Only probably in relation to the last part of the question was about our companies such as Aragor suitable for public markets and I think that part of the discussion here is on the undervaluation and obviously the board, management, people we speak to externally see the large opportunity and the challenge there is reflecting that within the share price and obviously signing a commercial deal starting phase two. Those are both very important value inflection points for us on that journey to effectively getting a reappraisal of what the valuation of the company is.

Thank you once again for answering questions from investors today. Before we ask investors to share their feedback, which I know is particularly important to the company, Sarah, perhaps I could ask you for some closing comments.

Yeah, I think hopefully what we've been able to communicate in the time that we have today, the company's very much focused. We're very much focused on those two core product areas. We have a clinically validated, you know, best in class insulin with a large, Patient unmet need there, so hence leading into a large multi-billion dollar market opportunity. Commercial stage partner in SQL MedTech, so real opportunity there to drive significant value from that unique profile of AT278. And also that upside potential then from the oral delivery of peptides. You know, we know it's scientifically challenging, but if we can be successful there, that's a huge opportunity. And, you know, as we talked around today, we still continue to leverage that Aristotle technology platform in partnering with pharma as well, which obviously brings those revenues into the business. but also offers that upside potential in the future from licensing. So we're confident now moving forward. We've got a number of significant milestones through the course of 2026, entering into the deal with Sequel, generating the PK by availability data for the oral delivery of peptides. So real opportunities to add significant value to the business.

Thank you both for your presentation this morning. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team of Iroquois Therapeutics PLC, we'd like to thank you for attending today's presentation and good morning to you all.