REG - Angle PLC - Half-year Report
26/09/2024 07:00
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RNS Number : 7111F Angle PLC 26 September 2024
For Immediate Release 26 September 2024
ANGLE plc
("ANGLE" or "the Company")
Interim Results for the six months ended 30 June 2024
LARGE PHARMA STRATEGY IMPLEMENTED SUCCESSFULLY
Three Large Pharma contracts secured each with substantial revenue potential
Strategic decision post period end to focus resources on pharma services
ANGLE plc (AIM: AGL OTCQX: ANPCY), a world-leading liquid biopsy company with
innovative circulating tumour cell (CTC) solutions for use in research, drug
development and clinical oncology, today announces unaudited interim results
for the six months ended 30 June 2024.
Financial Highlights
· Revenues for the half-year of £1.0 million (H1 2023: £1.2 million)
- sold order book of up to £1.9 million at period end
· Business re-shaped and streamlined with major focus on large pharma
- cost savings of c. £8 million by end of 2024 (as previously announced)
- focus on large pharma contracts delivered three relationships with
potential to deliver long-term large-scale revenues
- other large pharma relationships under development
· Loss for the half-year reduced by 21% at £7.7 million, or 2.89 pence
per share (H1 2023: loss £9.8 million, or 3.77 pence per share)
· Fundraise completed in June 2024 raising £9.3 million (gross) to
capitalise on the Company's position to develop the current three large pharma
opportunities towards large scale commercialisation along with other large
pharma and corporate opportunities under discussion
· Cash and cash equivalents at 30 June 2024 of £17.9 million (31
December 2023: £16.2 million). R&D Tax Credits due at 30 June 2024 of
£2.1 million (31 December 2023: £1.5 million)
Operational Highlights
Pharma Services
· Pharma services business refocused on large pharma, with the
deployment of the Parsortix technology to deliver key pharma objectives for
targeted cancer drugs and improved clinical trial efficiencies
· Three agreements signed with two large pharma customers, Eisai
and AstraZeneca
- pilot study for HER2 assay for Eisai as first step towards a companion
diagnostic for their HER2 antibody drug conjugate (ADC) under development;
progressing as planned with the HER2 assay working well to assess breast
cancer HER2 status
- development of a DNA damage response (DDR) assay for AstraZeneca with the
potential for deployment in multiple AstraZeneca DDR drug trials; showing
encouraging results and moving to the next stage of testing on patient samples
- development of an Androgen Receptor (AR) assay for AstraZeneca with the
potential for deployment in multiple prostate cancer clinical trials;
development progressing well. Testing on patient samples will commence shortly
with the aim to move the assay into the clinical lab so that it is available
for AstraZeneca clinical trials early in 2025
· Significant increase in number of prospective customers since
completion of successful fundraise in June 2024, with discussions progressing
with multiple additional large pharma companies
Product sales
· Product sales have been impacted by the 29 April 2024 announcement by
the US Food and Drug Administration (FDA) to regulate laboratory developed
tests (LDTs), the initial reaction was muted but has recently led to clinical
laboratories cancelling or pausing their new LDT development programmes. In
addition, the global slowdown in research funding has worsened and has
continued to delay customers' commitment to new contracts
· The market is expecting both the LDT and research funding conditions
to improve but timescales are unclear. In the meantime, ANGLE intends to
support and grow its translational and research use products customers to
ensure third party development of uses of the Parsortix system by leading
researchers continues and the body of evidence builds, but will prioritise its
investment towards the growth of our successful large pharma strategy
Content (applications)
· Good progress made in clinical studies:
- INFORM study on track with 419 patients recruited and 4,459 blood samples
collected as of 30 June 2024, building a liquid biopsy biobank in four major
cancer types for assay development and validation
- recruitment in ovarian and prostate cancer studies completed and Parsortix
cell harvest stored for future molecular analysis
- biobank of samples to be used to provide data to drive pharma sales
· Ongoing development of molecular assay for dual analysis of CTCs and
ctDNA from a single blood sample:
- research study results have shown that clinically relevant DNA variants were
identified in CTCs that were absent in plasma ctDNA in the same blood sample
- dual analysis of CTC-DNA and ctDNA has potential to expand clinically
relevant information driving improved targeted treatment selection
· Four peer-reviewed scientific papers were published in H1 2024
bringing the total number of peer-reviewed publications at period end to 96
from 41 independent international research centres. As announced today the
number of publications has now reached 100, spanning a decade of research and
the evolution of CTC analysis from simple enumeration for prognosis to highly
sensitive next generation sequencing for molecular analysis of cancer
Outlook
· Encouraging momentum with growing pipeline of large pharma and
corporate opportunities to build future large-scale revenue opportunities
· All three large pharma agreements with Eisai and AstraZeneca are
progressing well and, if successful, have the potential to lead to
substantially larger contracts for deployment in clinical trials
· Fourth agreement signed with Recursion Pharmaceuticals in H2, 2024
for a fully funded pilot study with the potential to flow into their
partnerships with multiple large pharma companies
· As exemplified by the second agreement with AstraZeneca, large pharma
customers provide significant opportunity to cross-sell within each
organisation, leading to execution of new agreements in a relatively short
timeframe
· Agreement with NuProbe signed in H2, 2024 securing an option to an
exclusive global licence (outside of China) for their pan-cancer next
generation sequencing (NGS) panel. This is by far the best performing panel
tested by the Company to date, enabling low-cost and highly sensitive and
specific detection of 6,500 DNA mutations in 61 clinically relevant genes.
This test enables dual analysis of CTCs and ctDNA from a single blood sample
and is expected to open up a broad range of pharma services opportunities
· Despite the recent unexpected constraints on product sales, revenues
for H2 are expected to double compared to H1 with the full year revenue
expected to be between £3.0 million and £3.7 million, materially lower than
previously anticipated
· In the medium term with the strategic focus on pharma services, the
Company is anticipated to be in a stronger cash generative position supported
by multiple large pharma relationships advancing to the next contractual phase
coupled with a substantially lower cost base
· Prioritising investment towards growth of the large pharma strategy
and reducing investment in the products side is intended to maximise ANGLE's
commercial opportunity and is now anticipated to deliver cashflow positive
trading in the second half of 2026; and the Company is funded to execute on
this plan
ANGLE Chief Executive, Andrew Newland, commented:
"Having identified a key unmet demand for CTC analysis to support drug
discovery and development progressing through to companion diagnostics, ANGLE
has proactively re-shaped its business, focusing its best-in-class liquid
biopsy solution to meet large pharma business needs. This, together with
cost-cutting and the recent successful fundraise, has put ANGLE in a position
to deliver future growth through the adoption of the Parsortix system and
assays for pharma drug trials across multiple cancer types leading to
companion diagnostics.
By securing large pharma services contracts, the Company does not need to fund
all assay development, regulatory and business development costs on its own.
The Company's validated, regulatory approved, product-based solution and ISO
accreditation has been key to attracting pharma customers.
Although product sales headwinds and its impact on our market expectations are
disappointing, I am pleased that the Company's targeted large pharma services
strategy has resulted in three new contracts with two large pharma customers,
Eisai and AstraZeneca, and a fourth contract with Recursion, which may
progress through to large pharma application. We look forward to managing the
transition to large pharma focus and building on this commercial momentum
further in the second half of the year and into 2025."
For further information:
ANGLE plc +44 (0) 1483 343434
Andrew Newland, Chief Executive
Ian Griffiths, Finance Director
Berenberg (NOMAD and Broker) +44 (0) 20 3207 7800
Toby Flaux, Ciaran Walsh, Milo Bonser
FTI Consulting
Simon Conway, Ciara Martin +44 (0) 203 727 1000
Matthew Ventimiglia (US) +1 (212) 850 5624
For Frequently Used Terms, please see the Company's website on
https://angleplc.com/investor-relations/glossary/
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the EU Market Abuse
Regulation (596/2014). Upon the publication of this announcement via a
regulatory information service, this information is considered to be in the
public domain.
These Interim Results may contain forward-looking statements. These statements
reflect the Board's current view, are subject to a number of material risks
and uncertainties and could change in the future. Factors that could cause or
contribute to such changes include, but are not limited to, the general
economic climate and market conditions, as well as specific factors including
the success of the Group's research and development activities,
commercialisation strategies, the uncertainties related to clinical study
outcomes and regulatory clearance, obtaining reimbursement and payor coverage,
acceptance into national guidelines and the acceptance of the Group's products
and services by customers.
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT
Introduction
The Company is at the forefront of the liquid biopsy revolution in cancer,
with unique and innovative CTC solutions that have the potential to transform
cancer care. With an increasing range of pharma services contracts, the
Company is well-positioned for strong growth.
Overview of Financial Results
Revenue for H1 2024 of £1.0 million (H1 2023: £1.2 million) reflects a
challenging market environment for product sales. With the large pharma
strategy now in place, revenues are expected to be driven by this in future
periods. Gross margins in the period averaged 59% (H1 2023: 62%) reflecting
the product-service mix.
Pharma services revenues in the period increased to £0.5 million (H1 2023:
£0.4 million). The sold order book for future pharma services and corporate
partnerships revenues, increased to £1.9 million at period end.
As previously announced, management has identified cost reductions expected to
result in cash savings of c. £8 million in the period to 31 December 2024, as
the US clinical laboratory was closed, and non-critical R&D and other
activities are deferred or reduced. This has resulted in reduced operating
costs for the period of £8.9 million (H1 2023: £11.4 million). The loss for
the period reduced by 21% to £7.7 million (H1 2023: loss £9.8 million).
A fundraise was completed in June 2024 raising £9.3 million (gross), £8.6
million (net). This funding is being deployed to support the Company's
expansion of large pharma relationships with potential to deliver long-term
large-scale revenues.
Cash and cash equivalents were £17.9 million at 30 June 2024 (31 December
2023: £16.2 million) with R&D Tax Credits due at 30 June 2024 of £2.1
million (31 December 2023: £1.5 million).
Executing business strategy to drive growth
Over time, the Board expects that the Parsortix-based CTC liquid biopsy
solutions will become an integral part of pharma drug discovery and clinical
development with the aim of widespread clinical use as companion diagnostics
to support targeted cancer drugs to deliver personalised medicine.
The Company has taken the strategic decision post-period end to prioritise
investment on its large pharma strategy and reduce costs in other areas, such
as product-related activities, to substantially lower the ongoing cost base.
While the first contract with a large pharma customer can take significant
time to secure and the timing of the progression of a particular contract
through the clinical trial process is uncertain, these contracts offer the
potential for very large-scale long-term revenue. The Company is working
towards securing numerous such large pharma contracts to drive the Company's
progress towards profitability. Excellent progress has been made with the
large pharma strategy during the period with three such agreements announced
with two pharma customers, Eisai and AstraZeneca.
· In January 2024, ANGLE announced an agreement with the global
Japanese pharmaceutical company Eisai. Under the terms of the agreement worth
an initial US $250,000, ANGLE is providing CTC analysis with its Portrait HER2
assay in a pilot study. The study drug is an antibody-drug conjugate (ADC)
that is composed of Eisai's proprietary anticancer agent, eribulin, conjugated
to an anti-HER2 antibody. It is expected to have anti-tumour effects on
breast, lung and other solid tumours that express HER2. The study is in
progress and the Company has received and processed blood samples identifying
the expression of HER2 on CTCs. Success of the assay in this study has the
potential to build through to larger revenues through inclusion in their Phase
II and Phase III trials, with the ultimate goal of approval as a companion
diagnostic.
· In April 2024, ANGLE announced an agreement, worth an initial
£150,000, with, AstraZeneca, for the development and validation of an assay
based on the Company's existing pKAP1 DDR assay. Early proof of principle with
AstraZeneca's test compounds has been achieved and the assay is now undergoing
further refinement. If successful AstraZeneca could implement this assay in
large-scale clinical studies to assess the efficacy of DDR therapeutics, and
enable longitudinal, repeat monitoring of treatment response.
· In May 2024, ANGLE announced a second services contract with
AstraZeneca. Under the terms of this agreement, worth an initial £550,000,
the Company is developing a CTC-based Androgen Receptor (AR) assay. There is
wide applicability, both to AstraZeneca and other pharma customers, for an AR
assay to measure protein expression, which can only be undertaken on intact
cancer cells. A successful development phase, anticipated in Q1 2025, will
demonstrate the importance of the Parsortix system in assessing the efficacy
of AR-targeted prostate cancer therapeutics and offers the potential for
long-term, ongoing revenues for the Company supporting prostate cancer
clinical trials. The Androgen Receptor Inhibitor Market size was valued at US$
10.3 billion in 2023 and is projected to reach US$ 12.5 billion by 2030.
The Company continues to focus on delivering "content" through the development
and validation of assays utilising CTCs. Good progress was made in developing
bespoke imaging assays to investigate protein targets on the CTCs and in the
development of molecular assays that will enable dual sequencing of CTC-DNA
and ctDNA, from a single blood sample. Preliminary study results and
subsequent validation by the Company, demonstrate that clinically relevant DNA
variants were identified in CTCs that were not found in ctDNA from the same
blood sample, potentially expanding the actionable information available to
guide targeted treatment selection. This finding has been validated further by
a third-party study in melanoma patients published by Hamburg-Eppendorf
University in June 2024. The authors conclude that the integration of a
multi-analyte approach to the patient care has the potential to further the
delivery of personalised medicine. These findings are of high importance to
ANGLE as they cannot be achieved without using the Parsortix system.
The installed base of Parsortix systems stands at over 260 with 224,000
cumulative samples processed of as of 30 June 2024. The reduction in the
installed base from 290 at 31 December 2023 reflects the closure of the US
facilities and a reduction in paid-for KOL activities.
Outlook
ANGLE is successfully building strong relationships with large pharma offering
the potential for substantial long-term growth as we can help large pharma
address some of their critical issues including identifying patients that will
respond to new classes of drugs such as ADCs (antibody drug conjugates) and
DDR (DNA damage response) inhibitors. Year to date the Company has already
secured four such pharma service agreements.
CTCs are a unique liquid biopsy analyte that provide intact living cancer
cells from a blood sample. The Company's ability to evaluate these intact
cancer cells has been instrumental in securing large pharma customers. Strong
sustained revenue growth is expected over the long term as CTCs, either alone
or in combination with ctDNA, become routinely incorporated into clinical
studies and eventually become fully incorporated into the cancer care pathway.
Services contracts with large pharma offer the potential for substantial
expansion of the Company's assay portfolio, with development funded by the
customer. The assays developed by the Company provide our pharma services
customers with the ability to undertake repeatable, longitudinal assessment of
drug efficacy. Furthermore, these assays have the potential to be provided as
a service to other companies with drugs targeting the same biomarker or
molecular pathway.
Success in any of these programmes has the potential to yield significant
benefits to pharma in clinical trials, regulatory clearance, pricing and
competitive positioning of their drugs. ANGLE is working to secure multiple
contracts of a similar structure with large pharma to maximise the number of
major revenue opportunities. Prioritising investment towards growth of the
large pharma strategy and reducing investment in the products side is intended
to maximise ANGLE's commercial opportunity and is now anticipated to deliver
cashflow positive trading in the second half of 2026; and the Company is
funded to execute on this plan.
Dr. Jan Groen Andrew D W Newland
Chairman Chief Executive
25 September 2024
Operational Update
Commercial strategy
ANGLE's vision is to secure widespread adoption of the Parsortix system by
providing circulating tumour cells (CTCs) as the "best sample" for analysis
coupled with state-of-the-art molecular and imaging assays to provide
high-throughput, low cost, highly sensitive, downstream analysis.
ANGLE sells the Parsortix system to laboratories investigating CTCs and this
has successfully driven a wide body of evidence in the form of peer-reviewed
publications.
The primary commercialisation route for the Parsortix system is through
long-term relationships with large pharma who need liquid biopsy assays to
support drug discovery and clinical development with a view to adoption as a
companion diagnostic to support the prescription of their targeted cancer
drugs.
ANGLE has established a GCLP-compliant laboratory in the UK, with the
capability, capacity and required quality systems to provide pharma customers
with assay services to support drug discovery and development. ANGLE's
clinical laboratory processes patient samples and offer validated assays to
support clinical decision making.
Parsortix content (applications)
ANGLE has launched multiple downstream assays available to customers as a
service from our GCLP-compliant laboratory. These include:
· Portrait Flex assay, designed to allow the detection of CTCs
regardless of EMT status. Combining the use of the Parsortix system and the
Portrait Flex assay allows for testing that is specific to customer needs and
can enhance their clinical study evaluations.
· DNA Damage Response (DDR) assays were developed to identify two
DNA damage markers, phosphorylated histone variant H2AX (γH2AX) and
phosphorylated KRAB-associated protein 1 (pKAP1) on CTCs enriched using the
Parsortix system. The increasing investigation of DDR/PARP inhibitors, alone
and in combination with chemotherapy or immunotherapy, broadens the utility of
γH2AX and pKAP1 assays as indicators of DNA damage and clinical
effectiveness. The assays make longitudinal, repeatable monitoring of
treatment response possible for pharma trials.
· The Portrait PD-L1 assay was developed to allow the detection
of CTCs and determine their PD-L1 status, which may enable better
identification of suitable candidates for immunotherapy studies and provide
longitudinal monitoring of patient response to therapy.
ANGLE has also started work with encouraging results on the application of AI
in cell image analysis (both immunofluorescence and FISH). This has the
potential to automate the labour element of microscopic analysis of the CTCs
ensuring consistency and reducing costs for high volume adoption.
Pharma services
The pharma services business utilising the Parsortix system offers the
potential for substantial revenues in the large cancer drug trials market
followed by adoption as a companion diagnostic to support drug prescription.
The use of CTC biomarkers in clinical trials is a rapidly growing field
enabling longitudinal monitoring of genomic, transcriptomic, and proteomic
changes.
CTCs are increasingly being recognised for the additional and complementary
information they can provide, with multi-analyte assessment having the
potential to unlock the full clinical capabilities of liquid biopsy. A recent
high impact review article summarising the evidence from across two decades
concludes that 'CTCs represent a transformative biomarker in precision
oncology, offering extraordinary opportunities to translate scientific
discoveries into tangible improvements in patient care'(1).
The Company has focused its business development on large pharma customers
where there is a large unmet market and no funding constraints. This resulted
in the announcement of three service agreements, with two large pharma
customers, Eisai and AstraZeneca in the six months ending 30 June 2024.
Post period end, the Company has signed an agreement with Recursion
Pharmaceuticals. Recursion is a clinical-stage biotechnology company
leveraging technology, including machine learning and AI, to industrialise
drug discovery. Under the terms of the agreement, ANGLE will undertake a pilot
study, fully funded by Recursion, with the potential for larger follow-on
contracts in the event of a successful pilot study. Recursion has partnerships
with multiple leading large pharma companies and has five research programmes
in clinical development, two in preclinical development and twelve in early
discovery.
The Company has developed bespoke assays for all its existing pharma
customers, targeting pathways which are undergoing significant commercial
growth. This offers considerable potential for further business both with
existing customers across their oncology pipeline and with other pharma
companies developing oncology therapeutics targeting the same or similar
biomarkers.
Corporate partnerships
Medical diagnostic and precision medicine companies
ANGLE is proactively engaging with a range of large medical diagnostic and
precision medicine companies with a view to working with them to port existing
tissue-based assays to a liquid biopsy format. Similar to large pharma
contracts, this has the potential to deliver substantial services revenues
followed by larger scale sales once the customer implements the solution. From
the customer's perspective a liquid biopsy offering will enable them to move
from one time use tests to repeat longitudinal monitoring of patient status
delivering repeat revenue potential from the same patient.
BioView
ANGLE continues to progress its collaboration with BioView to develop a CTC
HER2 (human epidermal growth factor receptor 2) assay kit for breast cancer
using a combination of ANGLE's Parsortix system and BioView's automated
microscopy systems and software.
The HER2 assay kit aims to detect and assess the HER2 expression and/or gene
amplification in CTCs and is another significant development for the Company.
The changing market dynamics of the HER2 breast cancer marketplace, with the
introduction of new drugs targeting tumours with low HER2 expression, have
provided a major commercial opportunity to develop a quantitative CTC-based
HER2 assay kit, to assess HER2 protein expression and/or gene amplification
levels by analysing fluorescence intensities. Unlike current standard of care
tests developed for use with tissue samples, a CTC HER2 assay kit could be
used for longitudinal monitoring of HER2 status throughout disease
progression, thereby ensuring the patient receives the most appropriate
targeted treatment at every stage.
Given the significant third-party interest in a new assay kit for quantitative
HER2 analysis based on CTCs, the agreement allows for the inclusion of third
parties in this project and its funding at the commercialisation stage after
assay development is complete.
Development of cutting-edge molecular solutions
Post period end, the Company signed an agreement with NuProbe, a cutting-edge
genomics and molecular diagnostics company, for the use of their proprietary
pan-cancer next generation sequencing (NGS) panel. The agreement grants ANGLE
an option to take an exclusive global license (outside of China) to the NGS
panel for the analysis of CTCs and the dual analysis of CTCs and ctDNA.
The NGS panel, which has been validated on the Illumina sequencers, enables
highly sensitive and specific detection of over 6,500 DNA mutations in 61
clinically relevant genes and been found to be the highest performing
multi-gene assay of those evaluated by the Company. These genes include those
with matched targeted therapies currently selected using assays which use
tumour tissue or circulating tumour DNA (ctDNA) and aligns with many key drug
targets under development by large pharma. This agreement will
help accelerate the Company's ability to commercialise its first pan-cancer
multi-analyte molecular sequencing assay which will provide pharma services
customers with unparalleled and repeatable insights across many cancer types.
Using the NuProbe NGS panel, ANGLE has developed a sample-to-answer workflow
for dual analysis of CTC-DNA and ctDNA from a single blood sample for
comprehensive molecular analysis. CTCs and ctDNA provide additional and
complementary information which has the potential to expand clinically
actionable information, for personalised therapy, when the two are analysed
together.
The Company is engaging with Illumina and approaching large pharma to expedite
the adoption of this combined molecular profiling approach. This is supported
by increasing recognition that a multi-analyte approach will be critical to
unlock the full potential of liquid biopsies.
Clinical studies
ANGLE is conducting clinical studies to generate patient data demonstrating
the value of Parsortix CTC analysis and has established a substantial biobank
of clinical samples for this purpose. The aim is to generate data in four
major cancer types, breast, prostate, ovarian and lung, which globally account
for 40% of solid cancer cases, to support sales to large pharma.
INFORM is ANGLE's largest study, targeting enrolment of up to 1,000 patients
with advanced stage cancer over a five-year period in four different cancer
types (breast, prostate, ovarian and lung), involving six NHS Trusts. Up to
1,000 patients will have blood drawn across multiple time points (up to six)
during their diagnosis, treatment, and follow-up. As of 30 June 2024, 419
patients had been enrolled into the INFORM study, with a total of 1,528 blood
draws performed and 4,459 tubes of blood received for either storage or
processing using the Parsortix system. Cells harvested by the system are being
evaluated using various immunofluorescence and/or molecular assays or being
stored for future molecular analysis.
The objectives of this study are to evaluate and characterise cells harvested
from cancer patients using multiple downstream techniques (such as imaging,
protein analyses, fluorescent in-situ hybridization (FISH), PCR and NGS) and
to evaluate changes in CTCs and other rare cells in cancer patient blood
samples over the course of their treatment.
Prostate and ovarian cancer studies
Recruitment of participants for the Company's prostate cancer study (DOMINO)
and ovarian cancer study (EMBER2) has completed. DOMINO resulted in the
collection of >400 blood samples from 100 prostate cancer patients whilst
EMBER2 collected >1,400 blood samples from 400 ovarian cancer patients. The
blood tubes drawn from each patient have been processed using the Parsortix
system and the cell harvest stored for future molecular analysis.
Peer-reviewed publications
The medical devices industry is evidence led, and in addition to the clinical
studies and regulatory studies described previously, peer-reviewed
publications from independent research groups are a key performance metric.
There were 96 peer-reviewed publications from 41 independent cancer centres as
of 30 June 2024 with 4 new publications announced during the reporting period.
Key studies in 2024 have demonstrated the Parsortix system's efficacy across
various cancer types, including lung, ovarian and melanoma. Researchers have
highlighted the system's ability to provide real-time insights into tumor
dynamics and genetic heterogeneity, which are crucial for personalised
medicine. Moreover, publications have explored the integration of the
Parsortix system with downstream molecular analysis techniques such as
quantitative PCR and next-generation sequencing (NGS). These integrations have
enabled detailed characterisation of CTCs at a molecular level, enabling
real-time assessment of clinically relevant biomarkers.
Andrew D W Newland
Chief Executive
25 September 2024
1. Reduzzi C. et al. Unveiling the impact of circulating tumor cells: Two
decades of discovery and clinical advancements in solid tumors. Critical
Reviews in Oncology/Hematology, (2024) Volume 203,
10.1016/j.critrevonc.2024.104483
ANGLE plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Six months ended Six months ended Year ended
30 June 30 June 31 December
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Revenue 1,034 1,196 2,186
Cost of sales (423) (455) (658)
Gross profit 611 741 1,528
Operating costs (8,914) (11,375) (23,287)
Operating profit/(loss) (8,303) (10,634) (21,759)
Finance income 187 190 463
Finance costs (140) (168) (336)
Profit/(loss) before tax (8,256) (10,612) (21,632)
Tax (charge)/credit 2 543 799 1,500
Profit/(loss) for the period (7,713) (9,813) (20,132)
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations (162) 1,058 1,114
Other comprehensive income/(loss) (162) 1,058 1,114
Total comprehensive income/(loss) for the period (7,875) (8,755) (19,018)
======= ======= =======
Earnings/(loss) per share attributable to owners of the parent
Basic and Diluted (pence per share) 3 (2.89) (3.77) (7.73)
All activity arose from continuing operations
ANGLE PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 June 30 June 31 December
2024 (Unaudited) 2023 2023
(Unaudited) (Audited)
Note £'000 £'000 £'000
Assets
Non-current assets
Intangible assets 2,659 2,748 2,741
Property, plant and equipment 2,685 3,376 2,922
Right-of-use assets 4,018 4,511 4,304
Total non-current assets 9,362 10,635 9,967
Current assets
Inventories 1,761 2,256 1,679
Trade and other receivables 1,922 1,436 1,807
Taxation 2,055 3,675 1,512
Cash and cash equivalents 17,882 22,162 16,218
Total current assets 23,620 29,529 21,216
Total assets 32,982 40,164 31,183
Liabilities
Non-current liabilities
Lease liabilities (3,513) (3,961) (3,905)
Provisions (363) (162) (370)
Trade and other payables (50) (39) (26)
Total non-current liabilities (3,926) (4,162) (4,301)
Current liabilities
Lease liabilities (707) (613) (649)
Provisions (424) (439) (544)
Trade and other payables (3,419) (2,882) (2,750)
Total current liabilities (4,550) (3,934) (3,943)
Total liabilities (8,476) (8,096) (8,244)
Net assets 24,506 32,068 22,939
Equity
Share capital 4 32,264 26,058 26,058
Share premium 118,362 115,918 115,918
Share-based payments reserve 6,443 5,940 5,709
Other reserve 2,553 2,553 2,553
Translation reserve (5,031) (4,925) (4,869)
Accumulated losses (129,983) (113,374) (122,328)
ESOT shares (102) (102) (102)
Total equity 24,506 32,068 22,939
ANGLE plc
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Operating activities
Profit/(loss) before tax (8,256) (10,612) (21,632)
Adjustments for:
Depreciation of property, plant and equipment 413 466 1,093
Depreciation and impairment of right-of-use assets 293 378 1,147
(Profit)/loss on disposal of property, plant and equipment - - 84
Amortisation and impairment of intangible assets 105 31 68
Share-based payment charge 792 760 1,894
Exchange differences (166) 1,129 1,183
Net finance (income)/costs (47) (21) (127)
Operating cash flows before movements in working capital: (6,866) (7,869) (16,290)
(Increase)/decrease in inventories (75) (333) 90
(Increase)/decrease in trade and other receivables (37) 348 (74)
Increase/(decrease) in trade and other payables 321 (999) (1,011)
Increase/(decrease) in provisions (138) (152) (36)
Operating cash flows (6,795) (9,005) (17,321)
Research and development tax credits received - - 2,863
Net cash from/(used in) operating activities (6,795) (9,005) (14,458)
Investing activities
Purchase of property, plant and equipment (114) (378) (611)
Purchase of intangible assets (19) (27) (49)
Interest received 191 194 457
Net cash from/(used in) investing activities 58 (211) (203)
Financing activities
Net proceeds from issue of share capital - placing 8,828 - -
Proceeds from issue of share capital - share option exercises - 14 14
Proceeds from disposal of property, plant and equipment - - 2
Principal elements of lease payments (382) (470) (959)
Interest elements of lease payments (74) (85) (182)
Net cash from/(used in) financing activities 8,372 (541) (1,125)
1,635 (9,757) (15,786)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at start of period 16,218 31,896 31,896
Effect of exchange rate fluctuations 29 23 108
Cash and cash equivalents at end of period 17,882 22,162 16,218
======= ======= =======
ANGLE plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Equity attributable to owners of the parent
Share-based
Share Share payments Other
capital premium reserve reserve
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'000 £'000
At 1 January 2023 26,058 115,918 5,321 2,553
For the period to 30 June 2023
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations
Total comprehensive income/(loss)
Share-based payment charge 760
Released on forfeiture/lapse (141)
At 30 June 2023 (Unaudited) 26,058 115,918 5,940 2,553
For the period to 31 December 2023
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations
Total comprehensive income/(loss)
Share-based payment charge 1,134
Released on forfeiture/lapse (1,365)
At 31 December 2023 (Audited) 26,058 115,918 5,709 2,553
For the period to 30 June 2024
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations
Total comprehensive income/(loss)
Issue of shares (net of costs) 6,206 2,444
Share-based payment charge 792
Released on forfeiture/lapse (58)
At 30 June 2024 (Unaudited) 32,264 118,362 6,443 2,553
ANGLE plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Equity attributable to owners of the parent
Translation Accumulated ESOT Total
reserve losses shares equity
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'000 £'000
At 1 January 2023 (5,983) (103,702) (102) 40,063
For the period to 30 June 2023
Consolidated profit/(loss) (9,813) (9,813)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations 1,058 1,058
Total comprehensive income/(loss) 1,058 (9,813) (8,755)
Share-based payment charge 760
Released on forfeiture/lapse 141 -
At 30 June 2023 (Unaudited) (4,925) (113,374) (102) 32,068
For the period to 31 December 2023
Consolidated profit/(loss) (10,319) (10,319)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations 56 56
Total comprehensive income/(loss) 56 (10,319) (10,263)
Share-based payment charge 1,134
Released on forfeiture/lapse 1,365 -
At 31 December 2023 (Audited) (4,869) (122,328) (102) 22,939
For the period to 30 June 2024
Consolidated profit/(loss) (7,713) (7,713)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations (162) (162)
Total comprehensive income/(loss) (162) (7,713) (7,875)
Issue of shares (net of costs) 8,650
Share-based payment charge 792
Released on forfeiture/lapse 58 -
At 30 June 2024 (Unaudited) (5,031) (129,983) (102) 24,506
ANGLE plc
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2024
1 Basis of preparation and accounting policies
This Condensed Interim Financial Information is the unaudited interim
consolidated financial information (the "Condensed Interim Financial
Information") of ANGLE plc, a company incorporated and domiciled in Great
Britain and its subsidiaries (together referred to as the "Group") for the six
month period ended 30 June 2024 (the "interim period").
The Condensed Interim Financial Information should be read in conjunction with
the Financial Statements of the Group for the year ended 31 December 2023,
which have been prepared in accordance with UK-adopted international
accounting standards. New and revised accounting standards and interpretations
that became effective in the period did not have or are not expected to have a
significant impact on the Group. Where necessary, comparative information has
been reclassified or expanded from the previously reported Condensed Interim
Financial Information to take into account any presentational changes which
were made in the Annual Report and Financial Statements to 31 December 2023
and which may be made in the Annual Report and Financial Statements to 31
December 2024.
The accounting policies used in the preparation of the Condensed Interim
Financial Information for the six months ended 30 June 2024 are in accordance
with UK-adopted accounting standards and are consistent with those which will
be adopted in the Financial Statements for the year ended 31 December 2024.
While the Condensed Interim Financial Information has been prepared in
accordance with the recognition and measurement criteria of UK-adopted
international accounting standards, these Financial Statements do not contain
sufficient information to comply with UK-adopted international accounting
standards.
This Condensed Interim Financial Information does not constitute statutory
financial statements as defined in section 434 of the Companies Act 2006 and
is unaudited and has not been reviewed. The comparative information for the
six months ended 30 June 2023 is also unaudited. The comparative figures for
the year ended 31 December 2023 have been extracted from the Group Financial
Statements as filed with the Registrar of Companies. The report of the
auditors on those Financial Statements was unqualified and did not contain
statements under sections 498(2) or (3) of the Companies Act 2006.
The Condensed Interim Financial Information was approved by the Board and
authorised for issue on 25 September 2024.
Going concern
The Financial Information has been prepared on a going concern basis which
assumes that the Group will be able to continue its operations for the
foreseeable future.
The Directors have considered the uncertainties, risks and potential impact on
the business associated with potential negative trading scenarios. In these
circumstances discretionary expenditure within the business provides
flexibility to scale back operations to address adverse events if required.
The Directors have prepared and reviewed the financial projections for a
period in excess of 12 months from the date of approval of this Condensed
Interim Financial Information with discretionary expenditure carefully
controlled in line with available resources, as certain projects may be
deferred until additional resources are available. Based on the level of
existing cash and expected R&D tax credits, the projected income and
expenditure (the quantum and timing of some of which is at the Group's
discretion), the Directors have a reasonable expectation that the Group and
Company have adequate resources to continue in business for the foreseeable
future. Accordingly, the going concern basis has been used in preparing the
Financial Statements.
Critical accounting estimates and judgements
The preparation of the Condensed Interim Financial
Information requires the use of estimates, assumptions and judgements that
affect the reported amounts of assets and liabilities at the date of the
Financial Information and the reported amounts of revenues and expenses during
the reporting period. Although these estimates, assumptions and judgements are
based on the Directors' best knowledge of the amounts, events or actions, and
are believed to be reasonable, actual results ultimately may differ from those
estimates.
The estimates, assumptions and judgements that have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities relate to share-based payments.
2 Tax
The Group undertakes research and development activities. In the UK these
activities qualify for tax relief resulting in research and development tax
credits.
3 Earnings/(loss) per share
The basic and diluted earnings/(loss) per share is
calculated by dividing the after tax loss for the period attributable to the
owners of the parent of £7.7 million (six months to 30 June 2023: loss £9.8
million, year ended 31 December 2023: loss £20.1 million) by the weighted
average number of shares in the period.
In accordance with IAS 33 Earnings per share 1) the "basic"
weighted average number of Ordinary shares calculation excludes shares held by
the Employee Share Ownership Trust (ESOT) as these are treated as treasury
shares and 2) the "diluted" weighted average number of Ordinary shares
calculation considers potentially dilutive Ordinary shares from instruments
that could be converted. Share options are potentially dilutive where the
exercise price is less than the average market price during the period. Due to
the losses in the periods, share options are non-dilutive for the respective
periods as adding them would have the effect of reducing the loss per share
and therefore the diluted loss per share is equal to the basic loss per share.
The basic and diluted earnings/(loss) per share are based
on 267,032,826 weighted average Ordinary £0.10 shares (six months to 30 June
2023: 260,467,288; year ended 31 December 2023: 260,467,288).
4 Share capital
The Company has one class of Ordinary shares which carry no right to fixed
income and at 30 June 2024 had 322,641,668 Ordinary shares of £0.10 each
allotted, called up and fully paid.
During the period the Company issued 62,061,121 new Ordinary shares with a
nominal value of £0.10 at an issue price of £0.15 per share in a placing of
shares realising gross proceeds of £9.3 million. Associated costs of £0.7
million were incurred. Shares were admitted to trading on AIM in June 2024.
Shareholder communications
This announcement is being sent to all shareholders on the register at 25
September 2024. Copies of this announcement are posted on the Company's
website www.angleplc.com (http://www.angleplc.com) and are available from the
Company's registered office: 10 Nugent Road, Surrey Research Park, Guildford,
Surrey, GU2 7AF.
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