ANGLE plc (AGL) 


Gathering momentum in Pharma Services

Symbol       AGL (AIM London) 

Price           21.0p (£61.2m)

Date            14 May 2024

Three new Pharma Services agreements with large cap pharma in 2024 demonstrate that ANGLE’s business development activities are successfully translating into customer income. These deals will make a valuable contribution to near-term revenues and also have the potential for more sizeable future revenues. Successful development of the underlying Parsortix-based assays could mean a transition into longer-term contracts for larger later-stage clinical studies, perhaps ultimately becoming companion diagnostics for commercial cancer drugs. Furthermore, the external validation provided by large cap pharma partners could facilitate future business development. Equally importantly, the resulting assays will augment ANGLE’s menu that it can offer other customers. ‘Content’ development should support both the products and services business lines, which along with clinical data generated with Parsortix to demonstrate utility in patient management, should help drive adoption. Our DCF-based valuation of ANGLE is £174m, or 67p/share.
  • Three new Pharma Services agreements Three partnerships have been secured with large pharma so far in 2024, two with AstraZeneca and one with Eisai. The deals have a c £905k aggregate headline value, which will contribute to FY24e revenue expectations. Importantly, there could be substantial future downstream income should any, or all, lead to further contracts for use of the respective Parsortix-based assays in later clinical trials. This could ultimately lead to a future companion diagnostic that could be a significant commercial opportunity.
  • Key near-term revenue driver with upside potential  ANGLE’s Pharma Services business offers clinical trial tools to pharmaceutical and biotech companies for oncology patient targeting and monitoring. Oncology trials are set to remain one of the most prolific areas of clinical activity and hence, over time, this could become a sizeable revenue stream. Growth will be driven by new customers and as existing customers progress to later stage and larger trials, potentially expanding to other programmes. The external validation provided by these latest large-cap pharma partners could facilitate and accelerate ongoing partnering discussions.
  • Aiming to drive wider Parsortix industry uptake  Alongside Pharma Services, ANGLE’s efforts are also focused on driving Product revenues through developing market-relevant “content” (menus of assays), supported by a growing network of distributors. In addition, continued generation of robust clinical data highlighting Parsortix’s potential in multiple solid tumour treatment regimens should help drive wider industry recognition and partnering opportunities.

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