Ergomed is a profitable CRO that enhanced its service offering in July 2014 through the acquisition of PrimeVigilance to include post-marketing support for marketed drugs. We believe the co-development business could drive significant potential upside as Ergomed co-invests a proportion of revenue in return for equity or royalty payments. Ergomed currently has 5 active co-development deals with clinical data from 4 due in 2016, providing upside potential to our 290p TP. We initiate with a Buy.
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Hybrid model drives significant upside potential
- Published:
18 Jun 2015 -
Author:
N+1 Singer Team -
Pages:
14
Ergomed is a profitable CRO that enhanced its service offering in July 2014 through the acquisition of PrimeVigilance to include post-marketing support for marketed drugs. We believe the co-development business could drive significant potential upside as Ergomed co-invests a proportion of revenue in return for equity or royalty payments. Ergomed currently has 5 active co-development deals with clinical data from 4 due in 2016, providing upside potential to our 290p TP. We initiate with a Buy.