Sharp drop in Angle shares following business update

AIM-listed medtech company Angle revealed that Origio, a partner involved in the development of a technology patented as EmbryoSure, has decided to cease EmbryoSure studies in a business update on Monday.

EmbryoSure is a technology being developed to assess the viability of embryos for transfer in IVF.

Earlier in 2012, Origio was acquired by The Cooper Companies and subsequently merged with Cooper subsidiary Sage IVF. As part of a rationalisation programme, Angle said that Origio had decided to cease a number of development programmes, including the EmbryoSure study.

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As a result of Origio's decision, the intellectual property and ownership rights of EmbryoSure have reverted to Novocellus, an Angle subsidiary, and Angle's ongoing financial and management resources committed to Novocellus are being re-directed to Parasortix. Parasortix is Angle's non-invasive cancer diagnostic business.

Angle's business update stated that Angle "remains confident of EmbryoSure's clinical utility in increasing successful pregnancy rates through the selection of the most developmentally competent embryos for IVF transfer and that there is a major unmet medical need in this area."

Andrew Newland, Chief Executive and founder of Angle, commented: "We are pleased with strong continued progress with our Parsortix non-invasive cancer diagnostic business. We are maintaining a clear focus on getting a Parsortix product in the market as soon as possible. Whilst Origio's decision is disappointing, we retain the rights to EmbryoSure's intellectual property for future exploitation and this allows us to pursue a greater focus on Parsortix."

Shares in Angle fell 17.24% to 30p at 15:46 on Monday.

MF