TIDMERGO
RNS Number : 3466Q
Ergomed plc
29 November 2016
PRESS RELEASE
FOR IMMEDIATE RELEASE
Ergomed strengthens PrimeVigilance with acquisition of European
pharmacovigilance and regulatory services business, PharmInvent
Complements existing PrimeVigilance services, consolidating
market leading position and boosting sources of future growth
Expected to be immediately accretive to earnings
London UK 29 November 2016: Ergomed plc ("Ergomed" or the
"Company", LSE: ERGO), a pharmaceutical services and drug
development company, today announces the acquisition of European
PharmInvent Services s.r.o. ("PharmInvent"), a leading European
pharmacovigilance and regulatory services business.
Background to the acquisition
This acquisition is consistent with Ergomed's stated strategy to
grow its existing, profitable services businesses both organically
and through bolt-on acquisitions. The transaction will expand and
complement its existing pharmacovigilance division, PrimeVigilance,
which has grown with a CAGR of 40% over the last 4 years and is
having a very successful 2016. PharmInvent is led by an
experienced, ex-regulatory agency team that offers drug safety and
regulatory consultancy expertise. They also have an extensive
network of international pharmacovigilance experts that provide
advice and support on both local product safety and offer
integrated global support for pharma and generic companies'
products.
Following the completion of the acquisition PharmInvent will
continue to be led by its founders, Dr Jan Petracek and Dr Martin
Votava. Dr Petracek was formerly a Head of the Risk Management
Section at the European Medicines Agency (EMA), while Dr Votava
represented the Czech Republic in The Committee for Medicinal
Products for Human Use at the EMA.
Combining PharmInvent's proven expertise with PrimeVigilance
creates one of the largest international specialist service
providers in the highly regulated drug safety sector. The enlarged
business will have a broad international client list offering
significant opportunities to cross sell, as well as an expanded
range of services to attract new customers. From this strong
position Ergomed's strategy is to actively expand the
pharmacovigilance and regulatory division, especially in the US,
thereby underpinning Ergomed's planned growth of revenues and group
profitability.
Commenting on the acquisition Miroslav Reljanovic MD, CEO of
Ergomed, said:
"This synergistic acquisition of PharmInvent both complements
and consolidates PrimeVigilance's market-leading position in
outsourced pharmacovigilance services for clients developing or
selling drug products across the world. Combining these companies
offers an expert and complete solution for clients and is
consistent with our strategy to accelerate further this strongly
growing part of our service business that addresses an expanding,
multi-billion dollar market. We are therefore confident that this
earnings accretive deal will quickly translate into significant and
sustainable shareholder value. We are delighted to be working with
Jan and his team and welcome them to Ergomed."
Jan Petracek MD, CEO of PharmInvent, added:
"These are very exciting times for PharmInvent. We have spent
the last six years building our business and reputation and now
look forward to significantly leveraging our position working
alongside PrimeVigilance. Together, our skills will allow us to
seize significant new opportunities as well as expand our offering
to our existing customer base. My team and I are delighted to be
joining the Ergomed team."
Deal terms and PharmInvent trading history
Under the terms of the deal Ergomed is acquiring 100 per cent of
the issued share capital of PharmInvent for an initial
consideration of EUR4.8 million (GBP4.1 million), with contingent
consideration based on the achievement of EBITDA targets for 2016,
2017 and 2018 of up to an aggregate further EUR3.2 million (GBP2.7
million). The initial and contingent consideration are both to be
satisfied 80% in cash and 20% in new Ergomed ordinary shares. The
initial share consideration will be satisfied through the issuance
of 640,576 new Ordinary Shares in Ergomed at an issue price of
128.78 pence per share. Admission of these new Ordinary Shares is
expected to take place at 8.00 a.m. on 2 December 2016
("Admission"). Following Admission, the total number of Ordinary
Shares in the Company will be 40,504,806. The Company holds no
treasury shares and therefore the total number of voting rights is
40,504,806. The deal is expected to be immediately accretive to
Ergomed's 2017 earnings per share.
In the year ended 31 December 2015, PharmInvent reported revenue
of EUR3.0million and adjusted EBITDA of EUR0.7million and had net
assets at 31 December 2015 of EUR1.1million. PharmInvent's revenue
is expected to grow 35% to approximately EUR4.0 million (GBP3.4
million) for the year ending 31 December 2016. Adjusted EBITDA for
the same period is expected to be approximately EUR0.8 million
(GBP0.7 million).
- ENDS -
Enquiries:
Ergomed plc Tel: +44 (0) 1483
503205
Miroslav Reljanovic (Chief Executive
Officer)
Stephen Stamp (Chief Financial
Officer)
Neil Clark (CEO - PrimeVigilance)
Numis Securities Limited Tel: +44 (0) 20
7260 1000
Michael Meade / Freddie Barnfield
(Nominated Adviser)
James Black (Joint Broker)
Stifel Nicolaus Europe Limited Tel: +44 (0) 20
7710 7600
Jonathan Senior (Joint Broker)
FTI Consulting - for UK enquiries Tel: +44 (0) 20
3727 1000
Simon Conway / Mo Noonan
MC Services AG - for Continental Tel: +49 (0) 211
European enquiries 52925222
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.
About European PharmInvent Services s.r.o.
Founded in 2010 by Dr Jan Petracek and Dr Martin Votava, in
Prague, Czech Republic, PharmInvent offers a comprehensive range of
pharmacovigilance and regulatory services to over 100 clients in
the global pharmaceutical industry. Led by a team of highly
experienced and qualified medical doctors and pharmacists,
pharmacovigilance services include an outsourced global network of
95 Qualified Persons for Pharmacovigilance (QPPVs) in 50 countries,
case management, risk management, audit, training and consulting
services on the establishment and maintenance of pharmacovigilance
systems. Regulatory services include strategic advice on regulatory
strategy, clinical trial and protocol design and medical writing of
regulatory submissions. PharmInvent's highly qualified workforce of
60 people includes 10 medical doctors, 28 pharmacists and 16
scientists with advanced degrees.
Following the acquisition PharmInvent will continue to be led by
Dr Jan Petracek. Dr Petracek is the former Head of Risk Management
Section at the European Medicines Agency, and the former Head of
Pharmacovigilance, Strategy and Development at the State Institute
for Drug Control in the Czech Republic. He studied Quality and
Safety in Healthcare (MSc) at Imperial College London, and trained
as a physician at Charles University in Prague (MD). He has written
and/or contributed to multiple national and international
guidelines, including ICH E2F, EMA Guideline on Safety and Efficacy
Follow-up - Risk Management of Advanced Therapies, and parts of
Volume 9A. Dr Petracek will also be joining the Board of
PrimeVigilance.
Dr Martin Votava will continue as PharmInvent's Chief Medical
Officer. Dr Votava represented the Czech Republic in The Committee
for Medicinal Products for Human Use at EMA (2007-2010), while
working as the Head of the Preclinical and Clinical Documentation
Assessment Unit at the State Institute for Drug Control. He
coordinated and provided assessment for centralized marketing
authorization procedures and referrals as a rapporteur or a
co-rapporteur for new active substances, biosimilar and generic
medicinal products. He gained his education in pharmacology at
Charles University in Prague (MD, PhD, Prof. Assoc.), where was
Head of the Pharmacology Department at the 2nd Faculty of
Medicine.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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