London, UK – 25 March 2015: Ergomed plc, (‘Ergomed’, AIM: ERGO) a profitable UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its Preliminary Results for the year ended 31 December 2014. Unaudited Financial Highlights Revenues up 40% in 2014 to £21.2 million […]
London, UK – 25 March 2015: Ergomed plc, (‘Ergomed’, AIM: ERGO) a profitable UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its Preliminary Results for the year ended 31 December 2014.
Unaudited Financial Highlights
- Revenues up 40% in 2014 to £21.2 million (2013: £15.1 million)
- Gross profit up 16% in 2014 to £5.8 million (2013: £5.0 million – includes £1.3 million co-development milestone)
- Net assets £15.3 million as at 31 December 2014 (2013: £1.9 million)
- Cash and cash equivalents of £4.6 million as at 31 December 2014 (2013: £1.9 million)
- Successful initial public offering (IPO) on the AIM Market of the London Stock Exchange in July 2014
- Acquired PrimeVigilance at IPO for £6.0 million in cash and £3.0 million in shares
- £26.8 million of service contracts won in 2014. Total backlog of awarded contracts as at 1 March 2015 of approximately £60.0 million
Unaudited Pro forma Financial Highlights
The unaudited pro forma adjustments assume that PrimeVigilance was owned for all of 2013 and 2014 and adjusts for certain non-recurring pre-IPO related party expenses, a share option charge in 2014 and the 2014 IPO expenses (see note 9).
- Pro forma Revenues up 23% to £23.7 million (2013: £19.2 million)
- Pro forma recurring operating profit increased in 2014 to £2.7 million from £1.4 million in 2013 (excluding non-recurring milestone of £1.3 million received in H1 2013)
- Three Phase III oncology co-development portfolio assets progressing well through ongoing studies
- Ferrer’s Lorediplon for insomnia Phase II co-development deal signed in January 2014 on track to start Phase II clinical studies in H1 2015. Site selection and initiation has commenced and the study is on track
- Aeterna Zentaris (AEZS) signed Master Collaboration Agreement with Sinopharm A-Think for Zoptarelin Doxorubicin in China in December 2014. Ergomed will received a single digit percentage of any net income from this China deal under the AEZS co-development agreement for endometrial cancer signed in 2013
- Three important clinical study results expected in 2016 from two Phase III studies and one Phase II study in the current portfolio
Post-Period End Highlights
- Signed first orphan disease co-development agreement with Dilaforette for Phase II clinical development of sevuparin in patients with Sickle-Cell Disease (SCD) experiencing acute Vaso-Occlusive Crisis (VOC). The study is planned to start in H2 2015. Dilaforette was granted Orphan Drug Designation by the US Food and Drug Administration (FDA) for sevuparin in SCD in March 2015
- Expanded presence in Asia with opening of office in Taiwan. This expansion is a key element of the Company’s strategic growth plan set out at the IPO and the Taipei base will be used as a hub for expansion into Asia
Commenting on the results, Miroslav Reljanovic, Chief Executive Officer of Ergomed plc, said: “Ergomed has delivered a strong performance in 2014, achieving significant year-on-year growth. Pro forma revenue increased by 23% and we saw a 40% increase in the value of new contracts won in the second half of 2014, reflecting strong demand across all divisions as well as Ergomed’s well-established market position.
“We continue to advance our co-development pipeline, and were pleased to announce our fifth co-development agreement, and first co-development agreement in orphan drug development with Dilaforette for Sickle-Cell Disease treatment after the period end. We are looking forward to the clinical study results planned to be announced in 2016 from our co-development portfolio, including two Phase III studies and one Phase II study due next year.
“As outlined at IPO, global expansion is also a key element of the Company’s strategic growth plan and the establishment of our new office in Taiwan is in line with our strategy to expand in Asia. Ergomed is well placed to continue to grow and develop its strategy as outlined at its IPO in July 2014 and I look forward to 2015 and beyond with confidence.”
For full report on Unaudited Preliminary Results For Year 2014, please click here
For further information, please contact:
Mary Clark, Supriya Mathur and Hollie Vile
Tel: + 44 203 440 5654
Stifel Nicolaus Europe Limited
Advisers/Broker to the Company
Jonathan Senior, Giles Balleny
Tel: +44 207 710 7600
Ergomed Plc is a profitable UK-based business 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 companies to small and mid-sized drug development companies. Ergomed successfully manages clinical development from Phase I through to late phase programmes.
Ergomed has a wide therapeutic focus, with a particular expertise in oncology, neurology and immunology and the development of orphan drugs. Ergomed believes its approach 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 which share the risks and rewards of drug development. Ergomed leverages its expertise and services in return for carried interest in the drugs under development. For further information, visit: https://ergomedplc.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.