Ergomed is a global full-service CRO business with a core focus on the United States and the EU. It provides Phase I–III clinical services in addition to post-marketing pharmacovigilance (Phase IV) services and is predominantly focused on oncology, orphan drugs, rare diseases and pharmacovigilance.
Ergomed proved to be a resilient business, which we attribute to a diversified and well-balanced pharma services offering (contract research outsourcing (CRO) and pharmacovigilance). Furthermore, Ergomed’s H121 results highlight that operational momentum continues to be strong following its stellar performance in FY20. Total revenues increased to £56.0m, up 48.1% on constant exchange rate basis (CER; 38.8% reported) y-o-y. Adjusted EBITDA increased to £12.1m, up 33% from H120 (£9.1m), while adjusted EPS was 16.8p, up 48.7% from H120 (11.3p). H121 results were substantially affected by FX headwinds, reflecting the increasing US$ contribution (now c 63% of the mix) after the US-based MedSource acquisition in December 2020. Growth was driven by a solid order book (£227.8m, up 51% y-o-y) and healthy new business wins in H121 (£90.8m, up 50.8% y-o-y). This provides high visibility for H221 and into 2022.
Innovation in healthcare is driving sales and growth in the number of clinical trials being initiated, as pharmaceutical and biotechnology companies continue to invest substantially. Tight operational control and execution will enable Ergomed to drive market share in high-growth orphan drug trials as well as in larger indications.