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Ergomed at heart of battle against coronavirus

Snapshot

  • 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
Ergomed PLC -

Quick facts: Ergomed PLC

Price: 810 GBX

AIM:ERGO
Market: AIM
Market Cap: £394.45 m
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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

In the first half of the year, underlying earnings (EBITDA) surged by 40% to £9.1mln, while revenue rose by 14.8% to £40.4mln.

The order book continued to grow and stood at £151.4mln at the end of June, up from £118.3mln a year earlier. Net cash at the halfway point of 2020 had risen to £14.1mln from £8.1mln as at the end of June 2019.

 

What the boss says: Miroslav Reljanović, executive chairman

"Ergomed has delivered exceptional progress both operationally and financially during the first half of the year, continuing to demonstrate our ability to drive sustained growth through a clear focus on our service model strategy.” 

“We responded robustly to the challenges of the COVID-19 pandemic with strong revenue and profit growth, a growing order book and sales momentum across the business. We will continue to invest for organic growth and efficiency, with a disciplined approach to strategic acquisition opportunities, and are firmly positioned to realise our potential as a leading global provider of specialist services to the pharmaceutical industry."

 

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Inflexion points

  • Bergamo trial is raising the group’s profile globally
  • Before the virus outbreak results were improving rapidly
  • Strong momentum maintained throughout 2020

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