ANGLE PLC (AIM:AGL, OTCQX:ANPCY), the med-tech group, told investors that it will likely be cash flow positive in the second half of 2026 as it provided an upbeat assessment of prospects.
In commentary alongside its interims, it said it is seeing encouraging momentum as it builds a pipeline of major pharmaceutical and corporate partnerships.
The company’s product, Parsortix, a liquid biopsy tool designed to aid cancer diagnosis, is gaining traction, with several high-profile agreements in place that could lead to large-scale revenue growth.
Three major deals with big pharma - one with Eisai and the other two with AstraZeneca - are progressing well.
If these partnerships are successful, they could result in larger contracts for the use of Parsortix in clinical trials, investors were told.
Additionally, a new agreement was inked in the second half of 2024 with Recursion Pharmaceuticals for a fully funded pilot study. This could open the door to further collaborations with Recursion’s large pharma partners.
ANGLE sees significant potential for cross-selling within these large pharmaceutical companies, as illustrated by its second agreement with AstraZeneca. The company believes this ability to quickly secure new contracts with existing partners will help accelerate growth.
However, despite these promising developments, the company has faced unexpected challenges in product sales, leading to lower-than-expected revenue projections for the full year.
ANGLE now expects full-year revenue to be between £3.0 million and £3.7 million. Nevertheless, the company anticipates doubling its revenue in the second half compared to the first.
Looking ahead, ANGLE plans to focus more heavily on pharmaceutical services while scaling back its investment in product sales.
The company expects this shift to improve its cash generation, with a goal of achieving cashflow-positive trading by the second half of 2026.
ANGLE remains funded to execute this strategy, which it believes will maximise its long-term commercial opportunities.
"Although product sales headwinds and its impact on our market expectations are disappointing, I am pleased that the company's targeted large pharma services strategy has resulted in three new contracts with two large pharma customers, Eisai and AstraZeneca, and a fourth contract with Recursion, which may progress through to large pharma application," said CEO Andrew Newland.
"We look forward to managing the transition to large pharma focus and building on this commercial momentum further in the second half of the year and into 2025."
For the six months ended June 30, ANGLE posted a loss of £7.7 million, down a fifth on the same point last year on revenues of £1 million as it exited the period with an order book of £1.9 million.
ANGLE expects to have found £8 million in cost savings by the year-end and, crucially, has almost £18 million in cash on the balance sheet, with £2.1 million in tax credits also expected.