ANGLE plc's target price has been hiked from 195p to 215p by Berenberg, which maintained its buy rating, following yesterday’s US Food and Drug Administration (FDA) clearance of the Parsortix system.
According to the broker, the long-awaited clearance of the Parsortix system, which is used to harvest cancer cells for subsequent analysis, gives ANGLE a head start over competitors in “one of the most attractive niches.”
As well as that, the analyst suggests the FDA clearance opens the opportunities for several large partnerships which were contingent on the decision.
“This is the biggest form of validation for the technology and is a major step in the commercial development of the company,” Berenberg said in a note.
Besides the monetary advantages, the broker also expects the technology to accelerate the company’s pharmaceutical services franchise.
Berenberg notes that its studies in ovarian and prostate cancer remain on track and that these applications should start contributing to sales in early 2023 and early 2024.
According to the analysts, there is no ongoing FDA clearance from its tumour cell extraction competitors, which should put ANGLE in the driver’s seat in the niche sector.