Angle shares bounce back on Parsortix prospects

Cancer diagnostics developer Angle (LON: AGL) reported 2022 figures in line with expectations, but the strong prospects for the Parsortix system and services, plus the cash pile have led to a jump in the AIM-quoted share price is 19.5% higher at 24.5p.

Parsortix is the first system that harvests circulating cancer cells from a blood sample for analysis that has been approved by the FDA. This is for metastatic breast cancer patients. Biopsies to be done with blood rather than through invasive operations.
Individual patients can be analysed to assess whether a particular treatment is appropriate. An assay development partnership with BioView is developing a HER2 test that will monitor the HER2 status of breast cancer patients. This will help to target the appropriate patients for the treatment. Management believes that could be a $2bn/ year testing market and it would boost demand for Parsortix systems.

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Trials continue for other forms of cancer and there are discussions with additional partners. A prostate cancer clinical trial should be completed before the end of the year. Laboratory developed tests for prostate and ovarian cancer are in the pipeline.

In 2022, revenues edged up to £1.04m with an initial contribution from the pharma services business. The loss increased from £17.4m to £24.4m. There was an initial contribution from pharma services and revenues are building up this year.

There was £31.9m in cash at the end of 2022, which is expected to last into the second half of 2024. Cost savings of £2.6m are expected this year, but money saved will be diverted to developing products and marketing.

Revenues could increase to £3m this year and more than double the following year. That will not have much affect on the loss will continue at around current levels.

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A flotation on Nasdaq has been put on hold because of market conditions. Management also wants to build up the business before it applies for a US listing.

Last July, Angle raised £20m at 80p a share. That is more than three times the current share price. In the past couple of days, the share price has recovered from its recent low of 17p. That is the lowest the share price has been since 2010.

There is significant potential for Angle, but investors will have to continue to be patient.

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