Release Date: September 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ANGLE PLC (ANPCY, Financial) has successfully secured three contracts with large pharma companies, including Eisai and AstraZeneca, in the first half of 2024.
- The company has demonstrated breakthrough DNA results, showing the complementary and additive value of analyzing circulating tumor cells (CTCs) alongside circulating tumor DNA (ctDNA).
- ANGLE PLC (ANPCY) completed a significant fundraiser, raising GBP9.3 million in June 2024, to support the development of its large pharma contracts.
- The company has secured an exclusive deal to access a DNA kit from NuProbe, covering 61 genes and 6,500 mutations, which is expected to stimulate interest from pharma companies.
- ANGLE PLC (ANPCY) has achieved its 100th peer-reviewed publication, demonstrating the high value and clinical potential of its Parsortix system.
Negative Points
- The company's product sales revenue has been disappointing, impacted by FDA regulatory changes and slowed research grant funding.
- ANGLE PLC (ANPCY) has had to revise its revenue guidance for 2024 down to GBP3 million to GBP3.7 million, reflecting challenges in closing expected contracts.
- The company is reducing its investment in the product sales side and cutting costs due to challenging market conditions.
- The execution of the pipeline for product sales has slowed down, with some clinical laboratories pausing or canceling their plans for laboratory-developed tests.
- The shift to prioritizing large pharma investment means that the company will need to manage the longer timelines and significant work required to secure and execute these contracts.
Q & A Highlights
Q: On the two deals with AstraZeneca, why are the financial terms different? Is it because the DDR is for an existing asset and the second is for assay development?
A: Yes, the DDR assay was already developed and only needed slight refinements, whereas the androgen receptor assay required starting from scratch, including finding the right antibody and optimizing it. (Andrew Newland, CEO)
Q: Regarding Recursion, does the pilot study mean using existing assets rather than developing new assays?
A: Correct, we are deploying existing assets for Recursion to see their relevance to their work. Recursion uses AI for drug discovery and has strong partnerships with large pharma. (Andrew Newland, CEO)
Q: Are you scaling back your sales force and global distributors in the products business?
A: We will cut costs on the product side but maintain support for leading research use customers. Distributors will continue as they bear the cost, and we will focus on high-performing distributors. (Andrew Newland, CEO; Ian Griffiths, CFO)
Q: Is the business rightsized for scaling the large pharma strategy, or do you need further investment?
A: We have ample capacity for current projects and can recycle R&D resources. As project numbers increase, we may need to add resources, but we are also investing in automation to reduce time resources. (Ian Griffiths, CFO)
Q: Are there shared economics with NuProbe for the DNA kit, and are there any upfront payments?
A: We have agreed on a keen price for the kits with significant margin potential for us. There are no large upfront payments; NuProbe is happy for us to exploit their technology. (Andrew Newland, CEO)
Q: How much effort and time does it take to secure a large pharma customer?
A: It took about a year for the first AstraZeneca contract, involving extensive data provision and accreditation processes. Subsequent contracts are quicker, especially with a master services agreement in place. (Andrew Newland, CEO)
Q: Are there milestones or royalties in the contracts as you progress through phases?
A: Current contracts are fee-based for work done, with IP ownership retained by ANGLE. Future stages may involve standardized pricing depending on the assay type. (Ian Griffiths, CFO)
Q: Could the merger of Exscientia with Recursion impact your contracts?
A: The pilot study with Recursion involves testing samples with existing assets. The outcome will determine future deployment, but current contracts are not affected by the merger. (Andrew Newland, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
