Ergomed at heart of battle against coronavirus

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Ergomed at heart of battle against coronavirus
  • Ergomed is a fast-growing pharmaceutical services company
  • Company has clinical trial arm and pharmacovigilance business
  • It is running a trial in Italy to help identify treatments for coronavirus

How its doing

Ergomed PLC (LON:ERGO) reported a 26% increase in revenue and confirmed an order book of £124.1mln as it reported full-year results.

The AIM-quoted firm is also 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.

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.

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, it added.

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 groups 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 nRead More – Source

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