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Ergomed seeing high levels of interest for coronavirus research services

The AIM-quoted pharma-services firm is supporting clinical coronavirus research in Bergamo, Italy

Ergomed PLC - Ergomed seeing high levels of interest for coronavirus research services

Ergomed PLC (LON:ERGO) reported a 26% increase in revenue and confirmed an order book of £124.1mln as it reported full-year results on Wednesday, and it also updated on its involvement in coronavirus (COVID-19) research.

The AIM-quoted firm is involved in a study at the Papa Giovanni XXIII Hospital in Bergamo, the epicentre of the virus in Italy, where the siltuximab antibody is being trialled in the treatment of patients with serious respiratory complications caused by COVID-19.

WATCH: Ergomed team discuss new coronavirus project and 'transformational 2019'

Ergomed told investors that it is currently experiencing high levels of interest in COVID-19 clinical research, and, the company remains focussed on its strategy to become a market leader in pharmacovigilance (the study of drug safety) and orphan drug trial services. 

In early trading, Ergomed shares rose by 7% to change hands at 350p.

READ: Ergomed joins fight against coronavirus in Bergamo, Italy

In its results statement, the group said: “Ergomed will use all the resources at its disposal to contribute to the efforts of the global and scientific community to beat the COVID-19 virus.”

“We will do this by continuing to provide our clinical trial and monitoring services for our existing and new clients and patients to the highest professional standards. At the same time, we will provide our services to researchers and clinicians for new projects designed to combat the virus,” the company added.

Ergomed said the Bergamo study illustrates how its experience and deep expertise in the provision of clinical study and pharmacovigilance services can assist the global scientific community in its fight against COVID-19.

Regarding the impact the virus is having on its own operations, Ergomed told investors that it has so far not seen a material impact. It said that plans are in place for financial risk mitigation and will be implemented if necessary.

Ergomed described its balance sheet as strong, with £14.3mln of cash at the end of December, and, it recently agreed a new three-year, multi-currency credit facility for the equivalent of £30mln which is intended to facilitate the group’s growth strategy.

Financial results

The pharma-services firm reported £68.3mln of revenue for the twelve months ended 31 December, up 26.1%.

The group's pharmacovigilance business unit saw a 28.6% increase in revenue to £35.4mln, while the clinical research outsourcing section improved revenue by 23.6% to £32.9mln.

Gross profit rose by 53% to £29.5mln, and adjusted underlying earnings (EBITDA) amounted to £12.5mln, while net profit came in at £5.56mln.

Quick facts: Ergomed PLC

Price: 442.5 GBX

AIM:ERGO
Market: AIM
Market Cap: £213.17 m
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