‘House’ broker finnCap is targeting a 100p share price for revenue-generating medical diagnostics company ANGLE PLC (LON:ANG), which would be a near tripling from the AIM-listed firm’s current share price of around 35p.
In an initiation note on the company, finnCap’s analysts noted that ANGLE is focused on the development of Parsortix, an instrument platform with recurring revenues designed to isolate and harvest rare circulating tumour cells (CTCs) from a patient’s blood sample.
READ: ANGLE says research further demonstrates key advantages of Parsortix system for cancer treatment
Launched into the research market in 2016, the analysts pointed out that Parsortix is gaining traction in leading cancer centres and with eminent key opinion leaders, which they think should accelerate if, as the analysts expect, US Food & Drug Administration clearance is achieved in late 2018/early 2019.
In an announcement yesterday, ANGLE highlighted the publication of independent research which further showed the key advantages of its Parsortix system in the treatment of cancers.
The AIM-listed liquid biopsy firm said the research published by the Heinrich Heine University of Duesseldorf in the International Journal of Molecular Science demonstrated the measurement of key proteins in breast cancer using Parsortix, which may advise therapy decisions in breast cancer treatment.
The group said the Dusseldorf study of 47 metastatic breast cancer patients showed that ANGLE’s Parsortix system harvests clinically relevant cancer cells for analysis that other systems miss.
In their note published today, finnCap’s analyst said ANGLE aims to be a leading player in the liquid biopsy market “by carving out clear, differentiated clinical applications for Parsortix – for use as high-risk diagnostic screening or therapeutic decision-making tools as well as for monitoring patients during (efficacy) as well as after therapy (recurrence).”
They added: “Its high level of accuracy and low false positive rate lend Parsortix to all solid tumours, potentially reducing the number of invasive follow-up procedures (eg tissue biopsy) that either may be inaccessible or are expensive, resource-intensive and carry increased risk.”
Addressable market estimated to be worth as much as £8bn
The analysts noted that ANGLE is addressing a substantial market, estimated to be worth as much as £8bn, but initially in three clinical applications worth around £4.6bn.
Pilot studies undertaken by its network are also looking at CTCs in other large cancer populations – colorectal, head & neck and lung and cancers.
The analysts said their punchy target price, based on a discounted cashflow analysis, also takes account of the requirement for up to £15mln of additional capital to fund ANGLE’s R&D and commercialisation activities, which could be in the form of equity, debt, grant or partnership funding.
They concluded: “Value lies in ANGLE's ability to position Parsortix where there is a clear and differentiated clinical need in an addressable market of c.£8bn.”