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.”
