ANGLE plc

FY21 results: prepared for commercial success

Lighthouse | 28 April 2022

Share this note

  • ANGLE’s end-December 2021 cash of £31.8m (end-June 2021: £21.0m), boosted by July’s £18.9m (net) equity raise, provides ample funds for planned investment to exploit future commercial opportunities. FY21 operating expenses of £18m were directed towards studies to develop and validate clinical applications of the Parsortix system and its commercial use, as well as openings of US and UK clinical laboratories and a pharma services offering. Current cash, plus an anticipated £4.5m R&D tax credit receipt, continues to represent a cash runway through to Q223.
  • Opening of ANGLE’s UK and US clinical laboratories enabled launch of a pharma services offering, providing analysis of CTCs (circulating tumour cells) for clinical trials. The grant of CLIA and UKAS accreditation (on track for H222) will permit validated clinical tests also to be offered. The first of these laboratory developed tests (LDTs) will be the ovarian cancer LDT, pending positive top line results of the ovarian cancer assay clinical verification study which are now expected mid-2022. Development of a second LDT, for prostate cancer, should soon be underway once collaboration terms are finalised with a large US urology clinic network.
  • The nascent pharma services business is gaining momentum. Two of the three partners secured in 2021 signed additional contracts for further clinical trials in 2022. Despite a relatively lengthy sales process, two new customers have also been added this year. Pharma services includes assay development (eg detecting proteins of interest expressed by CTCs) with subsequent use in clinical trials allowing longitudinal analysis of patient blood samples before, during, and after investigational drug treatment to monitor responses (information not available via traditional biopsies).
  • A key catalyst remains potential FDA clearance of the Parsortix system as a Class II medical device for harvesting CTCs for subsequent analysis in metastatic breast cancer (mBC). A comprehensive response to the FDA’s additional information request (AIR) on the submission, under the De Novo pathway, completed in June 2021. While a regular and constructive dialogue continues, the timing of a decision remains unclear. A positive outcome would make Parsortix the first CTC harvesting system approved and only the third product authorisation for any liquid biopsy.

Trinity Delta view: During 2021 ANGLE laid important foundations ahead of key events that should accelerate commercial prospects. Positive momentum in pharma services contracts and corporate partnerships coupled to new assay and LDT development will contribute to top-line growth. However, potential FDA clearance of the Parsortix system in mBC is a clear focus for many investors and will provide important validation for external partners. ANGLE is well positioned to capitalise on growing recognition of the utility of CTC analysis in investigating protein markers on cancer cells, without the limitations of ctDNA (circulating tumour DNA) liquid biopsy (inapplicable to proteins) or tissue biopsies (unsuitable for longitudinal monitoring). We value ANGLE at £506m ($658m), or 215p/share.

Lighthouse

28 April 2022

Price91p
Market Cap£214.0m
Primary exchangeAIM London
SectorHealthcare
Company CodeAGL
Corporate clientYes

Company description

ANGLE is a specialist diagnostics company. Its proprietary Parsortix technology can capture and harvest very rare cells, including CTCs (circulating tumour cells), from a blood sample. The FDA approval for its clinical use to guide precision cancer care will open up further multiple commercial opportunities.

Analysts

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041

Disclaimer

Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publicly available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at www.fisma.org. TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2022 Trinity Delta Research Limited. All rights reserved.