Ergomed Share Discussion Threads

[timbo003] 16/12/2016 11:00

Here's a date for your diary



I've now booked my place

[mfhmfh] 14/12/2016 15:29

bought some today, solid company. IMHO.

[battlebus2] 13/12/2016 10:25

Thanks timbo003.

[timbo003] 13/12/2016 09:46

Definitely worth a read:

[battlebus2] 09/12/2016 16:13

Moving well since those tie ups.

[russman] 29/11/2016 12:09

Seems a reasonable deal.

[timbo003] 29/11/2016 08:09

At the numerous Ergomed presentations I have attended over the last year or so, the directors have repeatedly said that they will continue to buy and build in this area providing they can find good opportunities where they only have to pay 8 times earnings (or less), this acquisition seems to be for at just over 7 times (historic) earnings or 6 times prospective earnings, so that sounds like a good deal me.

[battlebus2] 29/11/2016 07:29

Acquisition of Pharminvent for £4.1 million, looks a good add on, expected profits of 0.8€.

[russman] 31/10/2016 11:06

Looks like sevuparin could prove this business model works. R

[battlebus2] 27/10/2016 17:25

Creeping off lows with a bit of volume today :))

[sophiegb] 17/10/2016 14:58

Proactive Investors is here:

[battlebus2] 14/10/2016 07:16

Fourth license for Zoptrex, gaining a bit of traction.

[aim_trader] 11/10/2016 12:41

Ergomed CFO Stephen Stamp will be presenting to investors on the evening of 20th October at the Proactive One2One forum in Mayfair, London. For more details and to register to attend, please click here:

[hannahh] 26/9/2016 14:26

We will be hosting a webinar with the management of Ergomed tomorrow (Tuesday 27th September) at 11.15. There will be a presentation of the interim results lasting around 30mins followed by Q+A. If you would like to join please register for free at:

The Equity Development team

[battlebus2] 26/9/2016 07:45

I think we should move higher on the back of those results, I'm a happy holder.

[18bt] 26/9/2016 07:38

Interim report reflects increase in cost base. Still profitable, but a lot now riding on co-development potential.

[onlyahobo] 16/9/2016 12:11

I have liked the idea of this company because its history was one of an owner operator diligently and effectively growing a capital light business in a niche part of a space with broadly strong tail winds.

I have also liked the idea of co-development because of the way that it can strengthen its underlying CRO business from a sales point of view, its attractive tax implications, and strong possible upside as and when some of these deals come home.

While these initial conclusions stand, I have been extremely disappointed by the haemastatix acquisition because it moves the company into a new dependency on the capital markets. It was a deal that was not in my opinion value accretive. And furthermore, I think Stephen Stamp's handling of the transaction was very poor - ERGO allowed themselves to be royally screwed by the brokers.

Stephen Stamp and Rolf Stahel have a record of building big businesses but not per share value. So this transaction should not have come as a surprise to anyone.

That the company has now taken to paying for, and worse, press releasing paid for research is a further vote against management and its capital allocation discipline and capital markets understanding.

Very disappointing.

[onlyahobo] 16/9/2016 12:04

I have liked the idea of this company because its history was one of an owner operator diligently and effectively growing a capital light business in a niche part of a space with broadly strong tail winds.

I have also liked the idea of co-development because of the way that it can strengthen its underlying CRO business from a sales point of view, its attractive tax implications, and strong possible upside as and when some of these deals come home.

While these initial conclusions stand, I have been extremely disappointed by the haemastatix acquisition because it moves the company into a new dependency on the capital markets. It was a deal that was not in my opinion value accretive. And furthermore, I think Stephen Stamp's handling of the transaction was very poor - ERGO allowed themselves to be royally screwed by the brokers.

Stephen Stamp and Rolf Stahel have a record of building big businesses but not per share value. So this transaction should not have come as a surprise to anyone.

That the company has now taken to paying for, and worse, press releasing paid for research is a further vote against management and its capital allocation discipline and capital markets understanding.

Very disappointing.

[battlebus2] 08/9/2016 08:13

RNS this morning...."The completion of patient recruitment in the Phase IIa study in insomnia marks another important step in the clinical development of lorediplon for the treatment of insomnia. Lorediplon previously demonstrated - in a phase advanced model of insomnia - a potential best-in-class efficacy profile in terms of sleep maintenance and sleep quality when compared to the market leader zolpidem. This would make a marked improvement in the lives of patients suffering from this disorder. We look forward to reporting the results around the end of the year."

[battlebus2] 23/7/2016 18:00

Thanks Timbo for an excellent summary...

[timbo003] 22/7/2016 11:50

I'm not invested here but they are on my watch list and I attended the ShareSoc presentation yesterday so thought I would do a few notes as an aid memoire. This is the second time I have seen them present in the last year, so some of the slides were familiar.

Steve Stamp (CFO) gave the presentation (unfortunately there were no slide handouts so I cannot vouch for accuracy of numbers in my notes).

Summary details:

* Market Cap circa £50M, Revenue around £30M, EBITDA positive
* 100+ clients, 300 clinical studies, 50K patients, 350 employees.
* Ergomed has an unusual and diversified business model which consists of four main activities (CRO activities, Pharmacovigilance, co-development portfolio and Ergomed development portfolio).

CRO activities:

This specialises in a small number of areas (oncology, neurology, immunology and rare diseases, they won’t take on programs which require large studies like diabetes or asthma). This is a profitable part of the business but profits recycled to build co-development portfolio of drugs where Ergomed have a shared interest (5-15%) with the trial sponsor. Ergomed are continuing to buy and build the CRO business as small CRO companies can currently be acquired for 8X EBITDA.

Pharmacovigilance:

This is profitable with a 30-40% gross margin and demand for services is growing with large pharma outsourcing. Once signed up clients are sticky. Ergomed would like to acquire more businesses like this but they are hard to find.

Co development portfolio:

This currently consists of 5 products, which cost them the equivalent to £3M last year (not sure about previous years), they were acquired through discounting the CRO fee (discount 30 – 50%) with client companies who are using Ergomed as CRO for clinical studies on the 5 compounds (note there used to be 6 compounds one failed). Ergomed receives a fixed percentage of future royalties and milestone payments which are between 5 and 15% (of the partners income from the compound, not from gross sales should the partner outlicence to a large pharma). In some cases the client has negotiated a cap on the total fees/income receivable by Ergomed.

Ergomed 100% owned development portfolio:

This consists of two products (Haemostatix) to reduce/eliminate bleeding during surgery which sounded quite low tech, basically a biocompatible occlusive liquid and a biocompatible gel which have convenience advantages over existing products.



When asked about the relative value assigned by the brokers to the different parts of the business we were told it was £53m for the combined CRO and pharmacovigilance divisions, £15m for the co-development portfolio, £20m for their own Haemostatix development portfolio and £12m cash. The market cap is currently around £50m (share price circa 120p) and the last placing at 140p per share to fund the latest acquisitions was two months ago (May 2016).

What I like about the company is the potential royalty stream from the shared interest portfolio and the existing cash generating CRO and Pharmacovigilance service activities.

What I don’t particularly like is that they are also diversified into developing their own products (Haemostatix) and I am always suspicious of continuous buy and build strategies, which is what they are doing for the CRO and pharmacovigilance services and it is how they acquired the Haemostatix develop portfolio.

These will stay on my watch list for now, I would be more interested if they sold off Haemostatix and concentrated on organic growth rather than buy and build on the services whilst simultaneously growing the value of the co-development portfolio.

[davidosh] 20/7/2016 00:35

Ergomed are presenting at the ShareSoc event later today at FinnCap btw...



There may be a couple of places left.

[dice1950] 06/7/2016 21:28

!YOUTUBEVIDEO:Sb37zwgnCGo:
Stephen Stamp, CFO of Ergomed (ERGO)
6th July 2016




Ergomed (ERGO)


Founded in 1997, Ergomed plc is a profitable UK-based company, dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs. It operates globally in over 40 countries.


The company has planned, managed, monitored, and reported clinical trials with a range of technologies that include small molecule drugs, monoclonal antibodies, tri-functional antibodies, soluble receptors and other targeted agents, cancer vaccines and immunotherapy, radioactive agents, and photodynamic therapies.

[bigheff] 02/7/2016 08:23

Trading suspended. Very worrying.

[battlebus2] 13/6/2016 07:34

Couple of acquisitions this morning....