Strong first half trading performance – revenues up 85% and EBITDA up 66% Strong backlog of signed contracts Five co-development projects on track New co-development deal signed with Dilaforette for orphan drug Expansion into post-marketing service sector through Sound Opinion acquisition Opened Asian office in Taipei Guildford, UK – 29 September 2015: Ergomed plc, (‘Ergomed’, […]
Strong first half trading performance – revenues up 85% and EBITDA up 66%
Strong backlog of signed contracts
Five co-development projects on track
New co-development deal signed with Dilaforette for orphan drug
Expansion into post-marketing service sector through Sound Opinion acquisition
Opened Asian office in Taipei
Guildford, UK – 29 September 2015: Ergomed plc, (‘Ergomed’, AIM: ERGO) a profitable UK-based company dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its interim results for the six months ended 30 June 2015.
Unaudited Financial Highlights
- H1 2015 revenues up 85% to £14.5 million from £7.8 million in H1 2014
- H1 2015 gross profit doubled to £4.2 million from £2.1 million in H1 2014
- *H1 2015 EBITDA up 66% to £1.5 million from £0.9 million in H1 2014
- H1 2015 adjusted EBITDA of £1.7 million excludes non-recurring costs of £0.2 million relating to M&A activities and the expense of establishing the new Taipei office
- Net assets of £15.9 million (H1 2014: £2.6 million; 31 December 2014: £15.3 million)
- Cash and cash equivalents of £4.9 million as of 30 June 2015 (H1 2014: £1.6 million; 31 December 2014: £4.6 million)
- Contribution in kind to co-development projects increased to £1.9 million in H1 2015 from £1.2 million in H1 2014
Unaudited Pro Forma* Financial Highlights
- **Pro forma revenues increased by 39% in H1 2015 to £14.5 million (H1 2014: £10.4 million)
- **Pro forma gross profit up 27% to £4.2 million in H1 2015 from £3.3 million in H1 2014
*EBITDA is earnings before tax, interest, depreciation, amortisation and share-based payment charge
**Pro forma numbers for H1 2014 are adjusted to include PrimeVigilance (PV), which was acquired in July 2014, in both periods and also adjusted for certain pre-IPO related party costs
- Contracts with a value of £15.0 million signed for clinical studies and pharmacovigilance projects in H1 2015 (£11.2 million signed in H1 2014) – strong backlog of awarded contracts of approximately £60 million at the end of August 2015, in line with expectations
- Medical Information business expanded in May 2015 through the acquisition of Sound Opinion Limited
- Signed first orphan disease co-development agreement with Dilaforette for Phase II clinical development of sevuparin in patients with sickle-cell disease (SCD)
- Three Phase III oncology co-development portfolio assets progressing as planned through on-going studies. Potential to receive over $100 million in future revenues if successful. Two of these Phase III reporting pivotal results in 2016 with Phase III interim analyses expected in Q4 2015
- One Phase II clinical study also due to report results in 2016
Expanded presence in Asia with opening of office in Taiwan. This is in line with the Company’s strategic growth plan set out at the IPO and the Taipei base will be used as a first step for expansion into Asia
Post-Period End Highlights
- Strengthened Board with the appointment of Andrew Mackie as Chief Business Officer
- Placing of 3.96 million founder shares at 170p per share in July 2015 with institutional shareholders in London and Europe and increasing free float to 37% from 27%
Commenting on the results, Miroslav Reljanovic M.D., Chief Executive Officer of Ergomed plc, said:
“Ergomed has delivered excellent results for the first half of 2015 and is well positioned for the rest of the year and into 2016. We have made very good progress delivering on some of our key strategic aims whilst achieving year-on-year growth.
Our co-development portfolio is maturing and we are looking forward to our partners’ late stage clinical data readouts in 2016. We continue to believe that significant value can be generated through focusing our drug development capability on co-development partnerships and as the portfolio expands, Ergomed will be in a position to place more emphasis on this element of the business. Certainly, we are seeing good opportunities in this sector and as one of the few companies taking a shared-risk approach, expect to be one of the leading beneficiaries of this trend going forward.
The synergistic acquisition of Sound Opinion is in-line with our strategy to build our post-marketing services business, thereby generating strong recurring profits and a high value, focused business.
Overall, we continue to believe that our hybrid model of a profitable, healthcare services business, combined with managed investment in an exciting co-development portfolio, has the potential to deliver significant value while balancing the risks over the next few years.”
For further information, please contact:
Hume Brophy – for UK enquiries
Mary Clark, Supriya Mathur and Hollie Vile
Tel: + 44 203 440 5654
NOMAD/Broker to the Company
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: https://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.