Top line revenue growth of 30% Gross profit up 43% New business won in 2016 increased 50% to £42 million Contracted backlog at 1 January 2017 of £70 million Multiple corporate milestones achieved in 2016 Post year-end positive Phase II results announced from insomnia study London, UK – 28 March 2017: Ergomed plc, (‘Ergomed’, AIM: […]
Top line revenue growth of 30%
Gross profit up 43%
New business won in 2016 increased 50% to £42 million
Contracted backlog at 1 January 2017 of £70 million
Multiple corporate milestones achieved in 2016
Post year-end positive Phase II results announced from insomnia study
London, UK – 28 March 2017: 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 unaudited Preliminary Results for the year ended 31 December 2016.
Commenting on the results, Miroslav Reljanovic MD, Chief Executive Officer of Ergomed plc, said:
“I am proud of our achievements in 2016, a transformational year. We met our financial targets, delivering increased revenue and gross profit and at the same time achieved a number of important corporate milestones. The Board remains focused on delivering significant shareholder value by the continuing development of Ergomed’s exciting hybrid business model.
The acquisitions1 of O+P and GASD strengthened our CRO service offering whilst the acquisition of PharmInvent consolidated our position as a leading international, fast growing provider of pharmacovigilance services. Positive Phase II results from our co-development partnership with Ferrer and the acquisition of Haemostatix underline the potential of our drug development pipeline and its potential to deliver very significant shareholder value in the medium term. Based on our £70 million contracted backlog and the opportunities in front of us I believe 2017 will be another exciting year for Ergomed.”
Financial Highlights: Performance ahead of market expectations
- Revenues up 30% to £39.2 million (2015: £30.2 million)
- Gross profit up 43% to £12.0 million (2015: £8.4 million)
- EBITDA (adjusted)2 was £3.0 million (2015: £3.4 million) and EBITDA was £1.6 million (2015: £2.8 million), reducing
principally due to inclusion of Haemostatix R&D (2016: £1.0 million, 2015: £nil) following its acquisition (note 12)
- EPS (adjusted) was 7.1p (2015: 9.2p) and EPS was 1.3p (2015: 5.2p), again due to the inclusion of Haemostatix R&D
following its acquisition in May 2016 (note 13)
- Cash and cash equivalents of £4.4 million as at 31 December 2016 (2015: £4.0 million) with zero debt (2015: £nil)
- New contracts won in 2016 up 50% with an initial value of £42 million (2015: £28 million)
- Strong backlog of £70 million contracted revenue as of 1 January 2017 (1 January 2016: £59 million)
- The Company made four acquisitions during the year; Haemostatix Limited (“Haemostatix”) in May 2016, Dr Oestreich+ Partner GmbH (“O+P”) and Gesellschaft für angewandte Statistik + Datenanalyse mbH (“GASD”) acquired together in June 2016 and European PharmInvent Services s.r.o. (“PharmInvent”) in November 2016.
- Adjustments are made to EBITDA for share-based payment charge, deferred consideration for acquisition, write-back of deferred consideration for acquisition, acquisition costs and exceptional items.
Adjustments are made to EPS for amortisation of acquired fair valued intangible assets, share-based payment charge, deferred consideration for acquisition, write-back of deferred consideration for acquisition, acquisition costs and exceptional items.
Operational Highlights: Significant corporate milestones achieved
- An institutional placing raising gross proceeds of £9.2 million (May 2016)
- Acquisition of Haemostatix, a company focused on developing innovative products for surgical bleeding based in Nottingham, UK (May 2016) (see note 6)
- Acquisitions of O+P and GASD, respectively CRO and biostatistics companies, both based in Germany (June 2016) (see note 7)
- Acquisition of PharmInvent, a leading pharmacovigilance and regulatory services business based in Czech Republic (November 2016) (see note 8)
- An agreement with Asarina AB for the co-development of sepranolone for the treatment of PMDD (November 2016)
- Ergomed’s co-development partner, Ferrer, announced positive Phase II results of lorediplon for insomnia (February 2017)
- Ergomed initiated a Phase IIb study of PeproStat, our wholly-owned development product and the first to come from the Haemostatix pipeline (March 2017)
|Ergomed plc||Tel: +44 (0) 1483 503205|
|Miroslav Reljanovic (Chief Executive Officer)|
|Stephen Stamp (Chief Financial Officer)|
|Numis Securities Limited||Tel: +44 (0) 20 7260 1000|
|Michael Meade / Freddie Barnfield (Nominated Adviser)|
|James Black (Joint Broker)|
|Stifel Nicolaus Europe Limited||Tel: +44 (0) 20 7710 7600|
|Jonathan Senior / Ben Maddison (Joint Broker)|
|FTI Consulting – for UK enquiries||Tel: +44 (0) 20 3727 1000|
|Simon Conway / Mo Noonan / Natalie Garland-Collins|
|MC-Services – for Continental European enquiries||Tel: +49 211 5292 5222|
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 50 countries.
Ergomed provides clinical development, trial management and pharmacovigilance services to over 100 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. Lastly, Ergomed acquired a pipeline of proprietary development products for the treatment of surgical bleeding. 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.