ANGLE PLC (AIM:AGL, OTCQX:ANPCY) has received a buy recommendation and 195p target price from broker Berenberg, which has just started coverage of the liquid biopsy specialist.
The group’s Parsortix system extracts circulating tumour cells (CTCs) from blood with ease of use, sample quality and cost-effectiveness its strengths.
“In our view, this represents the best-in-class sample preparation technology in a rapidly evolving and clinically significant area of cancer diagnosis, putting ANGLE is in a strong position to take share in a market that is expected to be worth more than US$100bn in the long term,” said the broker.
Liquid biopsy is increasingly viewed as an attractive alternative to the existing pathway for cancer diagnosis, Berenberg adds, due to the patient and payer benefits from replacing invasive procedures with a simple blood draw that can be performed repeatedly throughout disease progression.
Liquid biopsies also provide more clinically relevant information on the patient, adds the broker.
More than US$20bn of investment has been directed towards the liquid biopsy space over the past two years and clinical adoption is already accelerating, a trend the broker expects to continue.
ANGLE offers the most clinically advanced CTC extraction technology, it adds, with several key catalysts for the company coming due in 2022.
“These include a potential FDA Class II clearance of Parsortix for CTC harvesting in metastatic breast cancer which should turbocharge the adoption of the technology across all modalities; key study read-outs from ovarian and prostate cancer studies and further contract extension announcements in its pharma services business."
Shares were trading at 126.5p.