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.
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Ergomed proved to be a resilient business in the challenging environment of 2020, which we attribute to a diversified and well-balanced pharma services offering (contract research outsourcing (CRO) and pharmacovigilance). Furthermore, Ergomed’s H121 trading update highlights that operational momentum continues to be strong following its stellar performance in FY20. Total H121 revenues increased by 38.8% to £56.0m (+48.1% CER) with underlying service fees up 28.6% to £47.6m (+37.2% CER). FX headwinds did curtail growth somewhat in H121 reflecting the increasing US$ contribution (now c 50% of the mix after the MedSource acquisition in December 2020). The order book continues to grow at an impressive rate, up 18% from end-2020 with a strong 1.62x book-to-bill ratio for the period.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2019A | 68.3 | 12.5 | 8.6 | 19.8 | 69.7 | 54.6 |
| 2020A | 86.4 | 19.4 | 14.4 | 23.7 | 58.2 | 37.0 |
| 2021E | 119.6 | 24.0 | 20.2 | 34.1 | 40.5 | 49.4 |
| 2022E | 136.8 | 27.1 | 23.3 | 39.3 | 35.1 | 38.5 |
Industry outlook
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.
Last updated on 21/09/2021Content on Ergomed
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Healthcare
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Balance sheet |
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| Forecast net cash (£m) | 29.1 |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Richard Barfield | CFO |
| Dr Miroslav Reljanović | Executive chairman |