Pharma Partnerships And Liquid Biopsy Will Expand Future Markets

Key Takeaways

• ANGLE's unique technologies and partnerships in precision oncology position it for strong, margin-expanding revenue growth as liquid biopsy adoption accelerates.
  
• Ongoing innovation, clinical validation, and disciplined cost management enhance ANGLE's competitive strength, diversify revenues, and improve long-term profitability.
  
• Heavy reliance on a few unpredictable pharma contracts and undiversified products, combined with slow market adoption and funding uncertainty, threatens revenue stability and profitability.

Catalysts

A medical diagnostic company, engages in developing cancer diagnostics products in the United Kingdom, Europe, North America, and internationally.

• ANGLE's growing pipeline of large contracts with major pharma and medtech companies positions it to capture significant upside from the accelerating shift toward personalized medicine and precision oncology. The adoption of Parsortix for patient stratification and monitoring in trials, with potential expansion to companion diagnostics, is likely to deliver substantial revenue growth and boost earnings visibility as projects progress from pilot to commercial stages.
  
• Exclusive capability and recent technological advances (such as DNA dual analysis, which provides unique information unattainable by ctDNA alone) differentiate ANGLE and align with oncology's migration toward non-invasive, data-rich liquid biopsy. This value-add is expected to command higher pricing per sample/test, increasing average revenue per customer and supporting margin expansion over time.
  
• ANGLE's increasing volume of independent, peer-reviewed publications across 24 cancer types enhances clinical credibility and broadens the total addressable market-leveraging long-term trends of rising cancer incidence and shifting standards of care, which should drive sustained multi-year revenue growth.
  
• Progress in cost containment and operating leverage-evidenced by a 21% reduction in operating expenditure and a 29% cut in losses-positions ANGLE to deliver significant margin improvement as revenues scale with additional pharma/medtech contracts and product adoption.
  
• ANGLE's focus on assay/menu development (funded largely by customers but retained as ANGLE IP) creates a virtuous cycle of innovation, enabling new applications, repeat testing, and product/service cross-sell. This increases the durability and diversification of revenues, supports higher net margins, and strengthens competitive positioning as liquid biopsy adoption grows industry-wide.

ANGLE Future Earnings and Revenue Growth

Assumptions

• Analysts are assuming ANGLE's revenue will grow by 138.1% annually over the next 3 years.
• Analysts are not forecasting that ANGLE will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate ANGLE's profit margin will increase from -497.0% to the average GB Medical Equipment industry of 10.2% in 3 years.
• If ANGLE's profit margin were to converge on the industry average, you could expect earnings to reach £3.9 million (and earnings per share of £0.01) by about July 2028, up from £-14.2 million today.
• In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 28.6x on those 2028 earnings, up from -1.4x today. This future PE is lower than the current PE for the GB Medical Equipment industry at 43.1x.
• Analysts expect the number of shares outstanding to decline by 0.31% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 7.99%, as per the Simply Wall St company report.

ANGLE Future Earnings Per Share Growth

Risks

• ANGLE's revenue growth remains highly dependent on converting a limited number of large, binary pharma contracts, and execution risk is heightened by the uncertainty and delays around follow-on deals and clinical trial progression-failure to secure or scale these partnerships would directly constrain revenue and profitability.
  
• Broader funding and research environment uncertainty-including ongoing reductions in NIH funding, post-COVID grant headwinds, and possible government budget cuts-has led to delays, cancellations, or reductions in basic research orders, which can create uneven revenue streams and reduce overall financial resilience.
  
• Slow market adoption and inertia in changing the clinical standard of care (from tissue biopsy to liquid biopsy/CTC-based tests) prolongs the commercialization timeline and increases customer education costs, delaying widespread revenue generation and extending the period before ANGLE achieves profitability.
  
• ANGLE's current product portfolio is relatively undiversified, with significant focus on Parsortix and related assays; this limited breadth increases vulnerability to competitive advancements in ctDNA/next-generation sequencing and regulatory or reimbursement setbacks, risking revenue volatility and margin pressure.
  
• To maintain quality standards, secure regulatory compliance, and deliver on new pharma contracts, ANGLE must continue investing in clinical laboratory infrastructure-this places upward pressure on operating expenses in the near term and, if not matched by revenue growth, could negatively impact net margins and increase reliance on future capital raises.

Valuation

• The analysts have a consensus price target of £0.28 for ANGLE based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of £0.37, and the most bearish reporting a price target of just £0.17.
• In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be £38.7 million, earnings will come to £3.9 million, and it would be trading on a PE ratio of 28.6x, assuming you use a discount rate of 8.0%.
• Given the current share price of £0.06, the analyst price target of £0.28 is 78.6% higher.
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.