Ergomed is a global full-service CRO business with a core focus on the US and 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.
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.
Healthcare
Healthcare
Healthcare
Healthcare
Dr Miroslav Reljanović
Executive chairman
Richard Barfield
CFO
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (4.0) | 6.5 | 9.0 |
Relative | (7.6) | (3.7) | 6.4 |
52 week high/low | 1456.0p/932.0p |
In the run-up to Ergomed’s FY22 trading update (expected end-January 2023), we take a fresh look at our estimates for the company and make minor adjustments to our projections to incorporate recent forex trends (primarily related to the US dollar strengthening in H222), management feedback and increased clarity on business performance. We raise our FY22–23 top-line estimates by c £2m for both years (benefiting from forex tailwinds), although our profitability and margin expectations remain largely unchanged as we increase our opex estimates slightly. We also update our capex and working capital estimates following clarity from the company management. Overall, our valuation remains broadly unchanged at £789m (1,573p/share) versus £783m (or 1,568p/share).
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2020A | 86.4 | 19.4 | 14.4 | 22.8 | 55.0 | 33.6 |
2021A | 118.6 | 25.4 | 21.6 | 39.6 | 31.7 | 32.6 |
2022E | 140.1 | 28.2 | 23.9 | 39.0 | 32.2 | 30.3 |
2023E | 156.5 | 31.7 | 27.7 | 44.7 | 28.1 | 22.9 |
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