Contract win validates rationale of acquisitions

RNS Number : 4981K

Ergomed plc

22 September 2016

 

Ergomed's full service contract win validates strategic rationale of recent acquisitions

London, UK - 22 September 2016: Ergomed plc, (LSE: ERGO or 'Ergomed' or "the Group") announces that, following its recent acquisitions of Dr. Oestreich + Partner GmbH ('O+P') and Gesellschaft für angewandte Statistik + Datenanalyse mbH ('GASD') in Germany, it has signed its first contract with an existing O+P and GASD customer to provide a significantly broader suite of services from the entire Group.  The long-standing customer will be using O+P's proprietary electronic data capture system, OPVERDI.

At the time of the acquisitions, it was noted that O+P and GASD enjoy strong brand awareness in their home markets and that a key rationale for the deals was the potential for cross-selling across offerings available within the broader Ergomed business, providing a "one-stop shop" for clinical trial service needs.  This €1.5 million contract covers six countries and supports Ergomed's broader approach to seek bolt-on acquisitions that further expand and enhance the menu of clinical trial services offered by the Group.

Commenting on the news Dr. Miroslav Reljanovic, Chief Executive Officer of Ergomed, said:

"I am delighted to announce this contract win with an existing customer of O+P and GASD.  The significantly broadened suite of Ergomed services provided to this customer validates the rationale behind our recent acquisitions of these German businesses.  Offering a comprehensive range of clinical trial solutions will enable us to grow our existing business as well as attract customers from new markets.  As such, we will continue to seek bolt-on acquisitions that enhance our menu of Services and position Ergomed as a one-stop shop for all our customer's clinical trial service needs."

-ENDS -

This statement is not regarded as disclosure of price sensitive information and the Company's guidance for the Group's financial performance remains unchanged.

Enquiries:

Ergomed plc	Tel: [phone]
Miroslav Reljanovic (Chief Executive Officer)
Stephen Stamp (Chief Financial Officer)
Numis Securities Limited	Tel: [phone]
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black (Joint Broker)
Stifel Nicolaus Europe Limited	Tel: [phone]
Jonathan Senior (Joint Broker)
FTI Consulting - for UK enquiries	Tel: [phone]
Simon Conway / Mo Noonan
MC Services AG - for Continental European enquiries	Tel: [phone]
Anne Hennecke

About Ergomed

Ergomed plc is a profitable UK-based business 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 companies to small and mid-sized drug development companies. Ergomed successfully manages clinical development from Phase I through to late phase programmes.

Ergomed has a wide therapeutic focus, with a particular expertise in oncology, neurology and immunology and the development of orphan drugs. Ergomed believes its 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 which share the risks and rewards of drug development. Ergomed leverages its expertise and services in return for carried interest in the drugs under development. Lastly, Ergomed recently acquired a pipeline of proprietary development products for haemostasis in surgical settings. For further information, visit: http://ergomedplc.com.

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.

 

END

 

 

NRAEAKNFALKKEFF