US expansion and opening of office in Boston

RNS Number : 2789C

Ergomed plc

27 June 2016

 

Ergomed subsidiary PrimeVigilance enters US market and opens office in Boston, USA

London, UK - 27 June 2016: Ergomed plc (LSE: ERGO) ('Ergomed' or 'the Company'), a profitable UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, announces the establishment of a new US office for its subsidiary group, PrimeVigilance Inc.

The new office in Waltham just outside Boston, MA, opens in July 2016 and will become the US base for PrimeVigilance, one of Europe's leading pharmacovigilance and medical information service providers. This US base gives PrimeVigilance the presence needed to support its current North American clients and to further develop relationships with new clients looking for US services as well as for US clients looking to enter the European and international markets.  

In 2015, Ergomed's pro forma revenues grew by 27% to £30.2 million, winning £28 million in new contracts with a £59 million contracted backlog as at 1 January 2016.  PrimeVigilance's revenues grew 47% to £8.3 million in 2015. Pharmacovigilance is a large and fast growing market, expected to reach $5bn in the next five years⁽¹⁾. 

Dr. Miroslav Reljanovic, Chief Executive Officer of Ergomed, said: 

"The opening of this US office marks an important step in our strategy, as stated at our IPO, to grow our profitable services business both through geographic expansion and selective acquisitions to add complementary services.  We can now offer our US customers pharmacoviligance and medical information support in the US as well as the rest of the world."

Neil Clark PrimeVigilance CEO added:

"We welcome our new employees in USA and look forward to working with our existing clients and building new relationships. The North American market is a key growth area for PrimeVigilance and we are excited about the potential for our business."

1.   Source: Contract Research Organization (CRO) Market for Early-Stage Development Services and Last-Stage Development Services: Global Industry Perspective, Comprehensive Analysis and Forecast 2014 - 2020 by Zion Research

Enquiries:

Stifel Nicolaus Europe Limited	Tel:  [phone]
(Nominated Adviser and Joint Broker) Jonathan Senior / Stewart Wallace
Numis	Tel: [phone]
(Joint Broker) Michael Meade / James Black
FTI Consulting	Tel:  [phone]
Simon Conway / Mo Noonan

About Ergomed

Founded in 1997, Ergomed plc is a profitable UK-based company, providing drug development services to the pharmaceutical industry and has a growing portfolio of co-development partnerships. It operates in over 50 countries.

Ergomed provides clinical development, trial management and pharmacovigilance services to over 100 clients ranging from top 10 pharmaceutical and generics companies to small and mid-sized drug development companies. Ergomed successfully manages clinical development from Phase I through to late phase programmes.

Ergomed has wide therapeutic expertise, with a particular focus in oncology, neurology and immunology and the development orphan drugs. Ergomed's approach to clinical trials is differentiated from that of other providers by its innovative Study Site Management model and the use of Study Physician Teams, resulting in a close relationship between Ergomed and the physicians involved in clinical trials.

As well as providing high quality clinical development services, Ergomed is building a portfolio of co-development partnerships with pharma and biotech companies. Here Ergomed shares the risks and rewards of drug development, leveraging its expertise and services in return for carried interest in the drugs under development. - a low risk investment model for potential high returns. For further information, visit: http://ergomedplc.com.

Global pharmacovigilance and medical information services are provided through its group company PrimeVigilance. www.primevigilance.com. PrimeVigilance is a specialised pharmacovigilance and medical information services provider positioned between the large clinical trials focused CROs and the smaller, local service providers who do not have the expertise or international presence needed for accurate, international safety and medical information services. 

Forward Looking Statements

Certain statements contained within the announcement are forward looking statements and are based on current expectations, estimates and projections about the potential returns of Ergomed plc ("Ergomed") and industry and markets in which Ergomed operates, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment. These forward-looking statements speak only as of the date of this announcement. Ergomed expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Ergomed's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.

 

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