ErgoMed provides a trading update for the year ended 31 December 2017.
Another year of strong service growth in 2017 and a robust order book backlog positions Ergomed well for 2018
London, UK – 25 January 2018: ErgoMed, Inc., a specialised pharmaceutical services and drug development company, provides a trading update for the year ended 31 December 2017. The Company will provide further details on the year-end performance at its 2017 Preliminary Results at the end of March 2018.
Financial Highlights:
- Unaudited 2017 net service revenues expected to be approximately £39 million, up 35% from £29.2 million in 2016.
- Unaudited 2017 total revenues expected to be approximately £47 million, up 21% from £39.2 million in 2016.
- Approximately £54 million of new service contracts were won in 2017, up 29% from £42 million in 2016.
- Ended 2017 with an order backlog of £88 million of contracted future work (31 December 2016: £70 million).
Service revenue growth of 35% in 2017 was driven by approximately 68% growth in Drug Safety & Medical Information services (DS&MI) which includes PrimeVigilance. DS&MI now represents approximately 57% of Ergomed’s total service revenues. Growth in this business continues to outpace a fast-growing market and is expected to be a key driver for Ergomed going forward.
The continued fast growth in Ergomed’s DS&MI, together with the acquisition of PSR, a specialised orphan drug CRO, represent another year of execution towards Ergomed’s strategy to become the global leader in pharmacovigilance services, the leading CRO in orphan drug development and to strengthen the CRO network by filling in geographies and / or service offerings. The Company continues to pursue opportunities to acquire services businesses which fulfil these criteria.
Stephen Stamp, Chief Executive Officer of Ergomed plc, said: “An order book backlog of £88 million means we enter 2018 in a position of strength, building on another year of strong top-line growth and continued execution on strategy. The PSR acquisition moves Ergomed towards a leadership position in orphan drug development services. Across our profitable services offering, Ergomed continues to outpace the market, driven by our Drug Safety and Medical Information business as we drive for global leadership in this attractive market.”
