Well-positioned ahead of PeproStat data
Ergomed offers clinical trial and pharmacovigilance services to pharmaceutical companies, while also co-developing a product portfolio of therapiesAhead of the PeproStat data expected toward the end of this month, Ergomed recently improved its competitive position for its Services businesses with its acquisition of PSR in the Orphan Drug/Rare Disease. At the same time, it signed its first deal for PeproStat (and ReadyFlow), suggesting attractive commercialisation opportunities awaiting the data at the end of the month.
Excitingly, the first commercial deal for a Haemsotatix product, PeproStat for the treatment of surgical bleeding was signed late September, having completed the recruitment of its 169 patient Phase IIb trial in July, six months ahead of schedule. A positive result from this clinical trial could increase the probability of success from 36% to 63% (as estimated by BIO for this therapeutic area) in the valuation analysis, nearly doubling the valuation for this programme.
The expected news flow for the rest of 2017 and into 2018 is focused on the outcome of the PeproStat Haemostatix trial data, further acquisitions to boost the profitability of the Clinical Research Services businesses may occur and more contract wins are likely.
The bottom of the range of our increased 281p-397p per share valuation is based on the more conservative “Services-only†sales forecast, discounting completely the potential upside from the attractive Products and Co-Development projects. The top of the range adds in these Product and Co-development projects. With significant upside to the bottom end of our valuation, the shares could see strong performance on the back of positive clinical data.
Ergomed is engaged in the provision of specialized services to the pharmaceutical industry and the development of new drugs. Co. focuses on oncology, neurology and immunology and the development of orphan drugs. Co. is building a portfolio of co-development partnerships with pharmaceutical and biotech companies. Co. has two business segments: clinical research services, which provides clinical development services to clients ranging from pharmaceutical companies to small and mid-sized drug development companies; and drug safety and medical information services, which includes Co.'s subsidiary, PrimeVigilance Limited, a pharmacovigilance and medical information services company.
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