A penny share called Angle (LSE: AGL) has roared back to life at the bottom of my portfolio. I remember it did this at the same time last year, before slumping beneath a £50m market-cap. Must be a new-year optimism thing.
As I write, it’s priced at 16.4p, which is 111% higher than at the start of November. This means a plucky investor who put two grand into this penny stock back then would now be sitting on about £4,220. Nice.
Valued only in the hundreds of pounds though, my holding’s worth well below that. However, I won’t complain, and I’m optimistic the share price could head higher, over time.
What’s the angle?
This small cancer diagnostics company specialises in liquid biopsies — non-invasive blood tests that can detect cancer cells or tumour DNA. These can help doctors diagnose cancer, assess treatments, and monitor to see if the disease has returned.
Angle’s pioneered the Parsortix liquid biopsy system. This device separates cells and captures circulating tumour cells (CTCs) from blood samples. It’s increasingly being seen as a game-changing technology in the emerging field of personalised cancer care.
There are a few interesting interesting things to note here. Firstly, the company’s CTC-harvesting technology’s patent-protected and already cleared by the FDA for use in breast cancer. So this de-risks the investment case with regard to the company’s core technology (it works).
In 2024, it signed two deals with AstraZeneca and one with Japanese pharma firm Eisai. This is to support clinical trials and cancer drug development.
Angle is also working on next-generation capabilities for an even more comprehensive view of cancer progression. On 29 January, it announced successful results from a new dual workflow, using biotech company Illumina‘s platform. Consequently, the DNA-sequencing giant has assigned its entire European Association for Cancer Research webinar on 6 February to Angle’s findings!
CEO Andrew Newland commented: “We see a substantial opportunity for both Angle and Illumina to work closely together.”
Finally, the global liquid biopsy market’s already large and growing. According to Fortune Business Insights, it’s projected to grow from $9.63bn in 2024 to around $58bn by 2032.
Risks galore
Now, there are also significant risks here. Although it expects 2024 revenue to have increased 31% year on year £2.9m, it’s also guiding for a loss of £14m (down from £20.1m in 2023).
And while the loss-making company holds £12.6m in cash, enough to last until 2026, another share offering remains possible. That would potentially dilute shareholders like myself.
Asymmetric investing opportunity
Still, I’m excited to see what the future brings as Angle pivots from selling instruments to providing services for blue-chip pharma companies like Astra.
According to current forecasts, revenue’s expected to grow 49% in 2025 to £4.3m, then 68% to £7.26m in 2026. However, if cancer trials using its technology advance to larger, late-stage studies, revenue could explode.
Indeed, Angle says that landing a single Phase 3 contract could immediately push the company into cash flow-positive territory.
My thinking here is that I can handle losing a few hundred quid if things turn pear-shaped. But if the firm’s technology’s successfully commercialised, the rewards are potentially very large for this penny stock.
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Ben McPoland has positions in Angle Plc and AstraZeneca Plc. The Motley Fool UK has recommended AstraZeneca Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
