ANGLE PLC (AIM:AGL, OTCQX:ANPCY), a specialist in liquid biopsies for cancer detection, is showing early signs of progress despite industry headwinds.
The share price, up 12% in early afternoon trade, reflects the progress outlined in the company's interim results statement.
ANGLE's Parsortix technology, the first FDA-cleared product for harvesting circulating tumour cells (CTCs), is gradually cementing its position as the gold standard in a nascent but potentially lucrative market.
Prospects for growth
Both Berenberg and Jefferies highlight ANGLE's promising revenue growth and momentum into the second half of the fiscal year.
According to Berenberg, ANGLE is making "encouraging progress in both content and clinical data development," which supports increasing revenue momentum in the future.
Jefferies notes that the company's strategy to drive Parsortix adoption is well in place, focusing on creating assays and protocols for third-party platforms.
ANGLE's strategy is twofold: developing methods of analysis to derive information from CTCs and demonstrating the clinical utility of this information in cancer diagnosis and management.
Jefferies points out that ANGLE has three ongoing clinical trials—INFORM, EMBER2, and DOMINO—that are building a biobank of samples for subsequent analyses. Data readouts from these trials are expected by the end of 2023 and should help commercialisation efforts.
Pharma services & market potential
ANGLE's pharma services business continues to secure opportunities despite challenging market conditions.
Jefferies expects additional contracts with existing and new partners to be signed during the second half of 2023. The larger commercial opportunity lies in the potential use of Parsortix assays as a companion diagnostic.
Jefferies estimates the total addressable liquid biopsy market to be in excess of $80 billion in the US alone.
Rude health
Financially, ANGLE appears to be on solid ground. Berenberg notes that costs and cash performed slightly ahead of expectations, extending the company's cash runway into the first quarter of 2025.
Jefferies echoes this sentiment, stating that prioritising resources could lead to around £5 million in cash savings by the end of 2024, further extending the cash runway.
In summary, ANGLE's liquid biopsy technology is showing promise in a nascent market.
While challenges remain, the company's strategic focus and financial prudence position it well for future growth.
Both Berenberg and Jefferies see a company on the cusp of tapping into a multi-billion-dollar market, making ANGLE a name to watch in the liquid biopsy space.