Angle preliminary results

Angle is one of my more speculative holdings, and the company released their preliminary results this week alongside an evaluation of their Parsortix device by the CEP Group at the Cancer Research UK Manchester Institute.

In short Angle's success or failure hinges on the findings of Key Opinion Leaders finding a clear clinical utility for the Parsortix device. The advantages of the device compared with the competition in this field and the relative cost effectiveness are already well documented, so to my mind the key issue is summed up rather neatly in the following paragraph:-

"The pilot study now underway (by the CEP group) will evaluate the feasibility and potential clinical utility of routine use of the Parsortix system to provide CTC information for patients at presentation and throughout their treatment."

In other words if Key Opinion Leaders can identify clear positive benefits for cancer patients by using the harvesting capability of the Parsortix device then investors will have hit the jackpot and more importantly many more lives may be prolonged or saved from this pernicious disease (in all its forms) by the development of personalised medicine.

Currently, it does look promising. Ged Brady, Deputy and Genomics Leader within the Clinical & Experimental Pharmacology group at Cancer Research UK Manchester Institute commented:
"The evaluation phase of our work is now successfully complete and we see great promise in the application of the Parsortix technology for harvesting CTCs for molecular analysis to enable personalised cancer care. We are now undertaking pilot studies using the Parsortix system in both colorectal cancer and pancreatic cancer."

At year end Angle had £3.9m cash on its balance sheet, and therefore a fund raising looks unlikely in the immediate future.

FDA approval is pending, but the big price driver will be the continued success of this device with Key Opinion Leaders and a tie up with one of the majors in agreeing a corporate deal and/or distribution partner. Given rumours earlier this year about a possible approach for the company, and the fact that Angle is essentially a one trick pony (albeit a potentially extremely rewarding trick), I expect the company to be sold in due course at a significant premium to the current price.

Speculative yes, but the signs are promising and I remain cautiously optimistic.