Shares in ANGLE PLC (AIM:AGL, OTCQX:ANPCY) may be trading at just 11.45p, but according to Trinity Delta’s research, the cancer diagnostics firm is a diamond in the rough.
Its analysis places the company’s worth at 48p per share, or £155 million, four times its current valuation.
This sharp discount reflects market hesitancy, but the company’s pivot to focus on large pharmaceutical partnerships could soon change perceptions.
ANGLE’s Parsortix liquid biopsy system is the only Food and Drug Administration-cleared platform for harvesting circulating tumour cells (CTCs).
These rare cells, found in blood samples, are crucial for personalising cancer treatments. The company’s recent shift in focus — from selling instruments and consumables to providing services for big pharmaceutical firms — is seen as a more effective method of monetising the company's technology.
In 2024, ANGLE signed three high-profile deals with global pharmaceutical companies, including two with AstraZeneca and one with Eisai, worth a combined £900,000.
These contracts leverage Parsortix to support clinical trials and drug development, targeting biomarkers like DNA damage or androgen receptors in cancer patients.
As these trials progress into larger, later-stage studies, revenues could grow significantly. According to management, securing even one phase III contract could move the company into cashflow-positive territory.
The focus on Pharma Services addresses several challenges facing ANGLE’s Products business, which has struggled with regulatory shifts and tightened research funding.
By prioritising services, ANGLE can tap into the growing demand for personalised cancer care while reducing its reliance on external financing.
Large pharmaceutical companies not only fund clinical trials but also create opportunities for follow-on contracts, as seen in AstraZeneca’s growing collaboration with ANGLE.
Expanding the playbook
To sustain its Pharma Services momentum, ANGLE is working on next-generation capabilities. One key area is dual analysis, which combines Parsortix-captured CTCs with circulating tumour DNA (ctDNA).
This integrated approach provides a more detailed picture of cancer progression and drug resistance. A molecular assay for this dual analysis is expected to launch within six months, further enhancing ANGLE’s appeal to potential partners.
The company’s UK laboratory plays a critical role in delivering these services, with the capacity to process over 40,000 samples annually.
ANGLE has also built a biobank of clinical trial samples to fuel assay development. These innovations position the company to broaden its Pharma Services offerings and maintain its edge in the competitive diagnostics space.
Challenges and opportunities
Despite its ambitious strategy, ANGLE faces several hurdles. Its Products business, which once drove revenues through instrument and consumable sales, remains under pressure. Regulatory changes affecting laboratory-developed tests and a tough funding climate have slowed its growth. However, ANGLE’s installed customer base provides a foundation for recovery when market conditions improve.
Financially, the company is holding steady. Cash reserves of £10.4 million as of December 2024, combined with expected research and development tax credits, should sustain operations into 2026.
Meanwhile, management is targeting over 20 new Pharma Services contracts, with a pipeline that has more than doubled since last year. Converting these discussions into signed deals will be critical - and could also bring forward the company's break-even date.
Market lag vs potential
ANGLE’s current share price reflects investor caution, but Trinity Delta’s valuation suggests the market is overlooking the company’s long-term potential.
With revenues expected to grow 31% in 2024 to £2.9 million and 49% in 2025 to £4.3 million, according to forecasts, ANGLE’s Pharma Services focus could prove transformational.
The Parsortix platform’s ability to drive personalised cancer care and its integration into drug development gives it a unique position.
As the company executes its strategy, the upside could be substantial — but for now, ANGLE’s valuation disparity offers a stark reminder of market scepticism - but also an opportunity for those who agree with Trinity Delta's analysis.