Ergomed Share Discussion Threads

[buffetteer] 20/6/2015 07:31

I think you're both completely wrong. The acquisition was clearly tiny in money terms but more in strategic terms . It fills a niche in the PV division. You may well live to regret that hasty decision IMHO.
Went to the Agm yesterday. The potential here is exciting. The trial business is growing at 10-15% p.a and the PV business at nearer 35% with much higher margins. This will increase overall margins.It is a leader in Europe and is being driven by regulation with. V high margins. The co- development business is progressing well and they expect 3 results in '16.with a maximum potential revenue of $120m the potential to add substantial value to the business is for all to see. If you look at the oars you will see a seriously able and widely experienced board of non execs. I've been topping up and will buy more in any further weakness.

[mirabeau] 28/5/2015 20:14

I think you're correct with your observations. Such an obvious lack of transparency does not inspire confidence

[devbod] 28/5/2015 18:57

Now finally managed to get rid of my shares. I'm very unhappy that the directors feel its not neccessary to tell other shareholders basic info like what they paid to buy a company. As you say it shouldn't have been much but it betrays a lack of concern that I've seen elsewhere turn into something far more serious.

For anyone buying into these beware the real spread. Its already quite wide but once you try to trade more than 1,500 shares the price will fall away beneath your sells. share price dropped 8p during my attempts to sell over the last few days. The real spread is effectively well over 10%.

I wouldn't touch these again with a barge pole.

[mirabeau] 26/5/2015 12:41

Well, it's got £22.5k in cash and a net worth of around £10.5k so I can't imagine they paid that much for it

[devbod] 26/5/2015 12:29

I'm more than a little disturbed by this mornings RNS. Given its to report buying of another company the two basic facts are what was bought and how much was paid. To omit the latter in an RNS to shareholders is disgraceful. Seriously thinking of selling out of these.

[proactivest] 14/5/2015 14:56

Video interview with CEO Reljanovic



Dr Miroslav Reljanovic, chief executive of Ergomed (LON:ERGO), says the company believes it can increase its share price further, which he claims is still undervalued even after a 20% rise over the last six months.

Reljanovic believes the acquisition strategy, coupled with newsflow over the coming months, should help the stock to continue its journey north.

Ergomed’s CEO says it’s hard to pin down the exact size of the potential market but says the market for oncology treatments in general is very large. The company floated on AIM in July last year, raising £11mln to fund its ambitious growth plans.

[buffetteer] 25/3/2015 17:16

Only comment I saw was a broker target by Stifel of £2.81 !
The market is completely ignoring the drug partnerships .Ive been topping up last month.
Good luck .

[18bt] 25/3/2015 16:56

Amazed no comment on results today and no movement in share price Propsective PE of 15x looks good for a company growing at 20% +

[buffetteer] 23/2/2015 15:18

Were paying short term pain (£2.3m in 2013) for long term gain .Lets hope the drugs aren't pups!

[malhashemi] 03/2/2015 15:46

Bought in today as well. Looks a bit under the radar, but as previous posters have said, it's profitable Pharma with (as an added bonus) huge upside of some of their collaborations bear fruit. CEO is ex shire is a big plus too in terms of credibility.

[puku] 21/1/2015 13:27

went to the seminar and was impressed, even more so with this update. I like the fact that it is profitable, cash generative, along with a blue-sky potential in its collaborations. If /when it gets another milestone payment, it should surge. Bought in today.

[18bt] 20/1/2015 08:08

Good update - steady progress last year and well placed for 2015.

[aim_trader] 06/1/2015 15:09

CFO Neil Clarke will be joining us on 15th January at the Chesterfield, Mayfair. Registration will start at 5:30pm. To register click here;

[hydrus] 28/7/2014 22:27

I haven't invested yet but looks pretty interesting, be good to get your thoughts once researched

[18bt] 28/7/2014 19:48

Have picked up a shareholding through an Octopus EIS fund. Looks an interesting co.but need to research further.

[hydrus] 19/7/2014 11:13

I like what I read to be honest, as long as they don't give too much of the testing business profits away for co-development projects but they seems to suggest 2 a year max. Also they clearly believe they have expertise to pick a small number of winners. If you read the existing co-development projects a couple of them seem to have a good chance of commercialisation. Good sounding Board, the Chairman is most impressive as he was CEO of Shire and grew them massively through acquisitions. There is talk of acquisitions in the prospectus so maybe ERGO hope to go down same route? They work with some pretty big drug companies also. My main question is, why have they floated? What is the motivation as its such a small free float? Seems to be a way for the Directors to get paid off for the business they are acquiring. I want to make sure Directors interests are aligned to mine as a small shareholder. Hope this is a helpful summary. Be good to hear others views, particularly on the above point and the VCT point.

[hydrus] 19/7/2014 11:06

Had a proper read now. Directors own 75% of the company so not much of a free float. Can be held as VCT/EIS, not sure how common that is perhaps someone can advise? How does one go about purchasing as a VCT/EIS? I am with HL. Most of the proceeds are being used to buy a company that the Directors own. This company seems to specialise in helping drug companies comply with the complex drug regulatory environment. Not sure how we know the purchase price was fair.Interesting model - they have a clinical testing business that looks pretty good to me, generating good profits. The second element of their business is co-development. They use some of the clinical testing business profits to gamble on co-development projects buy getting a proportion of future revenues for providing services to the partner at significantly reduced cost. The proportion of future revenues is typically capped at $100m. There is a hint that in the future this co-development business could be spun out IMO. Although there is clearly risk involved, the risk is not huge as the downside seems to be not getting fully paid for services.

[hydrus] 15/7/2014 22:43

EPS of 7.7p for 2013, for 2014 they seem confident of growth plus have the profits from the sister company they are buying also presumably. Doesn't look absurdly priced like some IPOs in this area. Will have a proper look over next few days.

[hydrus] 15/7/2014 22:31

Anyone got views on Ergomed? I need to read the admissions document!