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Expected revenue growth of 25%
Strong order book of signed contracts
Important clinical data from co-development partnerships due in 2016
Guildford, UK – 1 February 2016: Ergomed plc, (LSE: ERGO or ‘Ergomed’) a profitable UK-based company, dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, provides a business update for the 12 month period ending 31 December 2015.
The Company had a successful year of trading and unaudited, revenues for 2015 are approximately £29 million – up 25% from a pro forma total of £24 million in 2014 (pro forma based on the inclusion of PrimeVigilance for all of 2014).
Approximately £28 million of contracts were won in 2015, up from £26.8m in 2014 (on a pro forma basis). This reflects strong demand across all divisions and that Ergomed and PrimeVigilance continue to lever its well-established market position. Contract wins in 2015 include new clients as well as a healthy proportion of repeat business comprised of several multi-million pound full service clinical studies, full service pharmacovigilance projects and medical information services. The majority of these signed contracts are already in process and are scheduled to be completed over the next few years. The Company also signed a new co-development deal with the Swedish biotech company, Dilaforette, for a candidate for sickle cell anaemia and the project started Phase II clinical studies in 2015.
Ergomed ended 2015 with a total backlog of contracted work from all of its business segments with a value to be invoiced in the future of approximately £59 million. This strong order book has been driven by the continued recognition of the benefits of Ergomed’s approach to drug development, co-development and drug safety services from new and existing partners.
The Company will provide further details on the year-end performance at its 2015 Preliminary Results at the end of March.
Commenting on the 2015 Business Update, Dr Miroslav Reljanovic, CEO of Ergomed plc said: “Ergomed has delivered further growth in 2015, achieving year on year revenue growth of 25%. Our co-development portfolio is maturing and we are looking forward to our partners’ late stage clinical data to be announced later in 2016. We continue to see significant value creation through our co-development business and are in active discussions with a number of partners and expect to announce new deals in 2016. We also continue to review potential strategic acquisition targets as part of our global expansion.
With a significant proportion of revenue already secured for 2016 and a promising late stage co-development pipeline, Ergomed is well placed to continue to grow and develop its strategy and I look forward to 2016 and beyond with confidence.”
For further information, please contact:
Hume Brophy – for UK enquiries
Mary Clark, Eva Haas and Hollie Vile
Tel: + 44 203 440 5654
NOMAD/Broker to the Company
Stewart Wallace, Jonathan Senior
Tel: +44 207 710 7600
MC Services – for Continental European enquiries
Tel: +49 211 529252 22
About Ergomed plc
Founded in 1997, Ergomed plc is a profitable UK-based company, providing drug development services to the pharmaceutical industry and has a growing portfolio of co-development partnerships. It operates in over 40 countries.
Ergomed provides clinical development, trial management and pharmacovigilance services to over 60 clients ranging from top 10 pharmaceutical and generics companies to small and mid-sized drug development companies. Ergomed successfully manages clinical development from Phase I through to late phase programmes.
Ergomed has wide therapeutic expertise, with a particular focus in oncology, neurology and immunology and the development of orphan drugs. Ergomed’sapproach to clinical trials is differentiated from that of other providers by its innovative Study Site Management model and the use of Study Physician Teams, resulting in a close relationship between Ergomed and the physicians involved in clinical trials.
As well as providing high quality clinical development services, Ergomed is building a portfolio of co-development partnerships with pharma and biotech companies. Here Ergomed shares the risks and rewards of drug development, leveraging its expertise and services in return for carried interest in the drugs under development. – a low risk investment model for potential high returns. For further information, visit: http://www.ergomedplc.com.
Global pharmacovigilance and medical information services are provided through its group company PrimeVigilance. www.primevigilance.com
Forward Looking Statements
Certain statements contained within the announcement are forward looking statements and are based on current expectations, estimates and projections about the potential returns of Ergomed plc (“Ergomed”) and industry and markets in which Ergomed operates, the Directors’ beliefs and assumptions made by the Directors. Words such as “expects”, “anticipates”, “should”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”, “pipeline” and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment.
These forward-looking statements speak only as of the date of this announcement. Ergomed expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Ergomed’s expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.