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A penny share known as Angle (LSE: AGL) has roared again to life on the backside of my portfolio. I keep in mind it did this on the similar time final yr, earlier than slumping beneath a £50m market-cap. Have to be a new-year optimism factor.
As I write, it’s priced at 16.4p, which is 111% increased than at the beginning of November. This implies a plucky investor who put two grand into this penny inventory again then would now be sitting on about £4,220. Good.
Valued solely within the a whole lot of kilos although, my holding’s price properly under that. Nevertheless, I gained’t complain, and I’m optimistic the share worth might head increased, over time.
What’s the angle?
This small most cancers diagnostics firm specialises in liquid biopsies — non-invasive blood checks that may detect most cancers cells or tumour DNA. These will help medical doctors diagnose most cancers, assess therapies, and monitor to see if the illness has returned.
Angle’s pioneered the Parsortix liquid biopsy system. This gadget separates cells and captures circulating tumour cells (CTCs) from blood samples. It’s more and more being seen as a game-changing know-how within the rising discipline of personalised most cancers care.
There are a couple of fascinating fascinating issues to notice right here. Firstly, the corporate’s CTC-harvesting know-how’s patent-protected and already cleared by the FDA to be used in breast most cancers. So this de-risks the funding case with regard to the corporate’s core know-how (it really works).
In 2024, it signed two offers with AstraZeneca and one with Japanese pharma agency Eisai. That is to help medical trials and most cancers drug improvement.
Angle can also be engaged on next-generation capabilities for an much more complete view of most cancers development. On 29 January, it introduced profitable outcomes from a brand new twin workflow, utilizing biotech firm Illumina‘s platform. Consequently, the DNA-sequencing large has assigned its complete European Affiliation for Most cancers Analysis webinar on 6 February to Angle’s findings!
CEO Andrew Newland commented: “We see a considerable alternative for each Angle and Illumina to work intently collectively.”
Lastly, the worldwide liquid biopsy market’s already massive and rising. In accordance with Fortune Enterprise Insights, it’s projected to develop from $9.63bn in 2024 to round $58bn by 2032.
Dangers galore
Now, there are additionally vital dangers right here. Though it expects 2024 income to have elevated 31% yr on yr £2.9m, it’s additionally guiding for a lack of £14m (down from £20.1m in 2023).
And whereas the loss-making firm holds £12.6m in money, sufficient to final till 2026, one other share providing stays doable. That will probably dilute shareholders like myself.
Uneven investing alternative
Nonetheless, I’m excited to see what the long run brings as Angle pivots from promoting devices to offering companies for blue-chip pharma firms like Astra.
In accordance with present forecasts, income’s anticipated to develop 49% in 2025 to £4.3m, then 68% to £7.26m in 2026. Nevertheless, if most cancers trials utilizing its know-how advance to bigger, late-stage research, income might explode.
Certainly, Angle says that touchdown a single Section 3 contract might instantly push the corporate into cash flow-positive territory.
My pondering right here is that I can deal with shedding a couple of hundred quid if issues flip pear-shaped. But when the agency’s know-how’s efficiently commercialised, the rewards are probably very massive for this penny inventory.
