Ergomed PLC (LON:ERGO) is to pay up to €5.7mln to acquire Dutch-based PSR Group BV, a niche contract research organisation (CRO) specialising in orphan drug development, and undertook a share placing to raise £2.9mln, before expenses, to part-fund the deal.
The AIM-listed drug development company completed the placing this morning, after an accelerated bookbuild by brokers Numis Securities Limited and N+1 Singer Advisory LLP, with 1.757576 mln new ordinary shares issued at a price of 165p each. In late afternoon trading, Ergomed shares were trading at 183p each, down 4%, or 7.5p on last night's close.
WATCH: Ergomed develops in orphan drug space with PSR Group acquisition
Ergomed said its chairman Peter George acquired 45,000 shares in the placing at a total cost of £74,250, taking his total holding in the company to 276,250 shares, or 0.65% of the issued share capital.
Dr Dan Weng, Ergomed’s chief executive officer said: "This acquisition aligns with the strategy laid out at IPO of seeking to grow our existing, profitable service business both organically and through strategic acquisitions, and specifically of becoming a leader in orphan drug development.”
He added: “PSR has successfully demonstrated its leading capabilities in this area and its addition to the Group complements Ergomed's existing highly-regarded orphan disease specialist.”
Ergomed said it believes the combination with PSR will “have the scale and specialism to compete effectively in the global CRO market.”
READ: Ergomed signs first commercialisation deal for its blood coagulant products
The group added that it continues “to pursue opportunities to acquire services businesses which are consistent with its strategy of becoming the global leader in pharmacovigilance services, the leading CRO in orphan drug development and to strengthen its CRO network through geographic expansion and/or complementary service offerings.”
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