What it does
Ergomed PLC (LON:ERGO) provides custom made solutions in every stage of development, from proof of concept to late-stage programmes, to the pharmaceutical industry and the development of new drugs.
It has three arms: a full-service clinical research services division, a specialised orphan drug development team and PrimeVigilance, which provides pharmacovigilance and medical information services.
In response to the pandemic, the firm has engaged in trials for two antibodies, namilumab (IZN-101) and siltuximab. Interim data on the latter, an approved rheumatoid arthritis option, showed that 33% of patients saw clinical improvement, with a reduced need for oxygen support, while 43% stabilised.
Namilumab is a monoclonal antibody therapy targeting granulocyte-macrophage colony-stimulating factor (GM-CSF), a pro-inflammatory immune response or cytokine that plays a central role in a broad range of immune-mediated diseases.
Ergomed said the cytokine has been found in higher levels of COVID-19 intensive care patients and early treatment to suppress it might help halt the progress of coronavirus related illness.
How it is doing
The company saw underlying earnings (EBITDA) surge in 2020.
Adjusted EBITDA jumped 55.2% to £19.4mln from £12.5mln in 2019 while profit before tax leapt to £12.6mln from £5.0mln.
Revenue advanced 26.5% to £86.4mln from £68.3mln, despite contract research organisation (CRO) revenue being little changed at £31.3mln, as the sector was hit by the Coronavirus (COVID-19) pandemic.
Revenue growth was driven by the pharmacovigilance (PV) business, which saw revenues rocket 55.6% to £55.1mln from £35.4mln the year before, partly reflecting a first-time contribution of £9.3mln from PV USA (previously known as Ashfield Pharmacovigilance).
The group ended the year with a net cash balance of £19mln and unused credit facilities of £30mln, plus a strong order book of £193mln, up from £124.1mln a year earlier.
What the boss says: Miroslav Reljanović, executive chairman
"In 2020 Ergomed demonstrated the resilience and robustness of our services business model, continuing our strong organic growth and completing key strategic acquisitions in the USA in both our pharmacovigilance and CRO businesses. Despite the global COVID-19 pandemic, Ergomed performed ahead of market expectations for the full year.”
“We have started 2021 in a strong position focused on our vision to achieve global leadership in specialised pharmaceutical services addressing unmet medical needs and patient safety,” he declared.
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Inflexion points
- Benefits from strong order book
- Additional earnings from MedSource acquisition
- Strong momentum into 2021