We have updated our forecasts on Ergomed this morning following full year results on 12th April 2016. The results highlighted continued progression and robust growth in the group’s services business. We are expecting three of the group’s co-development partnerships to deliver clinical data in 2016 with positive data providing value inflection points. The group continues to be in discussions for potential new co-development deals and we look forward to them being announced during 2016. We continue to favour Ergomed’s integrated business model of services provision and co-development, which provides low-risk exposure to ongoing drug development programmes. We upgrade our target price to 286p (284p) and remain at Buy.
