Ergomed recently announced the acquisition of Haemostatix and accompanying c.£9m placing. The announcement of an acquisition came as no surprise given that strategic acquisitions are part of the group’s strategy in order to expand globally. However, we expected a complementary acquisition to PrimeVigilance rather than one that added a development segment to the business, increasing its overall risk profile. Although we do note that a portion of the c.£9m placing has been earmarked for acquisitions in the services business. We continue to favour Ergomed’s integrated business model of services provision, co-development and now development. We remain at Buy with a revised Target Price of 263p (from 286p).
