Jefferies reckons ANGLE PLC (AIM:AGL, OTCQX:ANPCY) is primed for commercialisation and has a cash runway that takes it well into 2024.
In a note, the bank, which is well regarded in the healthcare space, said shares in the diagnostics specialist were worth 170p each. Its ‘upside scenario’ is 365p, and the ‘downside scenario’ is 55p.
Currently, ANGLE stock is changing hands for 66.1p, valuing the business at £172mln.
The group has developed and perfected Parsortix, a liquid biopsy system that accurately picks up the tell-tale signs of cancer and which has received US regulatory sign-off for use in metastatic breast cancer.
Parsortix is the bedrock of the company’s pharma services commercial operation.
It currently has four large contracts, two of which Jefferies estimates are worth more than US$1mln apiece, and has strong interest from a potential 20 customers for bespoke assays.
The American bank reckons ANGLE will be generating revenues in excess of US$180mln in 2028. While that may seem ambitious, it is a tiny fraction of the liquid biopsy market, which it is estimated could be worth US$80bn a year in the US alone.