Interim Results 2019 25 September 2019 1 www.ergomedplc.com - - PowerPoint PPT Presentation

interim results 2019
SMART_READER_LITE
LIVE PREVIEW

Interim Results 2019 25 September 2019 1 www.ergomedplc.com - - PowerPoint PPT Presentation

TRANSFORMING DRUG DEVELOPMENT Interim Results 2019 25 September 2019 1 www.ergomedplc.com www.ergomedplc.com DISCLAIMER The information contained in this confidential document ( Presentation ) has been prepared by Ergomed plc (the


slide-1
SLIDE 1

www.ergomedplc.com www.ergomedplc.com

TRANSFORMING DRUG DEVELOPMENT

Interim Results 2019

25 September 2019

1

slide-2
SLIDE 2

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

DISCLAIMER

The information contained in this confidential document (“Presentation”) has been prepared by Ergomed plc (the “Company”). It has not been independently verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation and not immediately returning it, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation. This Presentation is not to be disclosed to any other person or used for any other purpose. Please note that the information in this Presentation has yet to be announced or otherwise made public and as such constitutes relevant information for the purposes of section 118 of FSMA and non-public price sensitive information for the purposes of the Criminal Justice Act 1993. You should not therefore deal in any way in the securities of the Company until after the formal release of an announcement by the Company as to do so may result in civil and/or criminal liability. Numis Securities Limited ("Numis") is acting in the provision of corporate finance business to the Company, within the meaning of the Financial Conduct Authority’s Conduct of Business Sourcebook (“COBS”), and no-one else in connection with the proposals contained in this Presentation. Accordingly, recipients should note that Numis is neither advising nor treating as a client any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Numis under the COBS nor for providing advice in relation to the proposals contained in this Presentation. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation,

  • r any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as

“Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed

  • r implied by these statements. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the

Company's results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. Neither this Presentation nor any copy of it may be (a) taken or transmitted into Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or the United States of America (each a “Restricted Territory”), their territories or possessions; (b) distributed to any U.S. person (as defined in Regulation S under the United States Securities Act of 1933 (as amended)) or (c) distributed to any individual outside a Restricted Territory who is a resident thereof in any such case for the purpose of offer for sale or solicitation or invitation to buy or subscribe any securities or in the context where its distribution may be construed as such offer, solicitation or invitation, in any such case except in compliance with any applicable

  • exemption. The distribution of this document in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this document comes should inform

themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.

| 2

slide-3
SLIDE 3

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com | 3

OUR VISION

GLOBAL LEADERSHIP

in Pharmacovigilance and Orphan Drug Development

slide-4
SLIDE 4

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Consolidation and Growth

H1 2019 OVERVIEW

| 4

  • Strong financial performance H1 2019 vs H1 2018
  • Strengthened executive team and Board changes
  • Commercial integration process on track
  • Accelerated Business Development
  • Focussed strategy
  • Confidence in market and ability to deliver future growth
slide-5
SLIDE 5

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Consolidation and Growth

H1 2019 KEY DEVELOPMENTS

| 5

Strengthened Executive Team

  • Richard Barfield appointed to the Board as Chief Financial Officer
  • Roy Ovel appointed as Chief Commercial Officer
  • Sally Amanuel appointed as Head of Regulatory and Clinical Delivery
  • Jon West appointed as President of PrimeVigilance

Board changes

  • Appointments of Jim Esinhart, Rolf Soderstrom and Ian Johnson as NEDs
  • Peter George resigned, Jan Petracek stepped down as COO and CEO of PrimeVigilance

Strategic focus

  • Integration of acquisitions and realisation of CRO / PV commercial synergies
  • Strong organic growth in both CRO and PV core businesses
  • Full focus on services business model
  • Co-development projects now all in final stages, significant reduction in R&D expense

Positioning for future

  • Positive cash position and debt free
  • Strong and stable position as platform for future growth
  • Market dynamics will support future growth potential
  • Trading in H2 2019 has started well and is in line with FY expectations
slide-6
SLIDE 6

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Financial Summary

2019 INTERIM RESULTS

| 6

Financial performance H1 2019 vs H1 2018

  • Revenue of £35.2 million, up 36.8% on a comparable

IFRS 15 basis (H1 2018: £25.7 million)

  • Gross Margin £14.5 million, up 61.4% on a comparable

IFRS 15 basis (H1 2018: £9.0 million)

  • EBITDA (adjusted) of £6.5 million (H1 2018: Breakeven

£0.0 million)

  • Cash and cash equivalents of £8.1 million at 30 June

2019 (30 June 2018: £7.4 million)

  • Backlog of future contracted revenue £118.3 million, up

26.9% (30 June 2018: £93.2 million)

  • Basic EPS profit of 7.8 p (H1 2018: (5.7)p loss)

Certain items in this report are restated and should be read in conjunction with the disclosures in the Press Release dated 25 September 2019.

Unaudited

(£ millions, unless stated)

H1 2019 H1 2018

Total Revenue 35.2 25.7 Gross Profit 14.5 9.0 Gross Margin 41.2% 34.9% EBITDA (adjusted) 6.5 (0.0) Cash at 30 June 2019 8.1 7.4 Backlog at 30 June 2019 118.3 93.2 Basic earnings per share (pence) 7.8p (5.7)p

slide-7
SLIDE 7

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

CRO 10.2 CRO 13.6 PV 12.0 PV 15.9

CRO 4.1 CRO 7.0

PV 4.9 PV 7.6

Focus on services business model

2019 INTERIM RESULTS: FINANCIAL HIGHLIGHTS

Service Fee revenue split by segments (£m) Service Fee margin split by segments (£m) Service Fee revenue up 32.7% to £29.5m

(H1 2018: £22.2m)

Total revenue up 36.8% to £35.2m

(H1 2018: £25.7 m)

Total gross profit up 61.4% to £14.5m

(H1 2018: £9.0m )

H1 2018 H1 2019 H1 2018 H1 2019

Certain items in this report are restated and should be read in conjunction with the disclosures in the Press Release dated 25 September 2019.

| 7

(£m)

Total Service Fee margin 49.8%

  • verall

(H1 2018: 40.5% )

Service Fee gross profit up 63.4% to £14.7m

(H1 2018: £9.0m)

+ 32.3% + 56.1% + 33.1% + 72.0%

slide-8
SLIDE 8

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

2019 INTERIM RESULTS: FINANCIAL HIGHLIGHTS

Strong backlog growth and H1 2019 sales performance

£66.2 million contracted CRO backlog up 28.0%

(30 June 2018: £51.7m)

£49 million Order intake Momentum continued in H2 2019 c £98 million Strong pipeline New BD team beginning to deliver 93.2 118.3

H1 2017 H1 2018

Contracted backlog (£m)

£118.3 million contracted backlog at 30 June 2019

(30 June 2018: £93.2m)

Strong H1 2019 Business Development

| 8

H1 2018 H1 2019

  • Strengthened BD team
  • Strong RFP flow
  • Total pipeline £98 million
  • Order intake H1 2019 £49 million
  • Significant new major wins across the full

range of services with many new clients

  • Momentum continued into H2 2019
  • Sales outlook positive

£52.1 million contracted PV backlog up 25.5%

(30 June 2018: £41.5 m)

slide-9
SLIDE 9

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Sevuparin Sickle Cell Disease

  • Negative Phase II data
  • New funding sought for new indication, Ergomed will not contribute
  • 98% complete

Sepranolone PMDD

  • Recruitment finished, results expected H1 2020
  • Ergomed c. 2.5% shareholding in Stockholm listed company
  • 85% complete

Multikine Head and neck cancer

  • Phase III study ongoing; results awaited
  • Advanced stage of progress

All projects approaching completion with minimal focus and spend going forward

CO-DEVELOPMENT STRATEGY CLOSING OUT

| 9

PROGRAMME STATUS UPDATE

  • Awaiting Phase III trial, seeking financial / license partner
  • Fully impaired – no carrying value on Ergomed balance sheet
  • Minimal ongoing cost to maintain IP during marketing process
  • No new co development agreements signed in 2019 in line with strategy to fully focus on services business model
  • All existing co-development studies in final stages to completion and / or maintenance mode

Peprostat Readyflow

slide-10
SLIDE 10

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Renewed Business Development team in key global markets

COMMERCIAL UPDATE

| 10

Full team now in place

  • Philadelphia
  • San Francisco
  • Jersey City
  • Pennsylvania
  • California

Full team to be complete imminently

  • UK
  • Scandinavia / Nordics
  • DACH
  • Western Europe

~ 50% of global clinical trials market ~ 47% of all global clinical trials started in 2018 required US operations 2nd largest global clinical trials market ~ 25% of all global clinical trials started in 2018 required Europe operations USA Europe

slide-11
SLIDE 11

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

FOCUS ON SERVICES BUSINESS MODEL

Total revenue ~ £2.5m

  • ver 3 years

| 11 June 2019

New Client

Illustrating Ergomed’s ability to win substantial new global studies utilising all our businesses and services with innovative new approaches

Global study West coast biotech All Ergomed services Rare disease Full service Phase II CRO study

Project A Project C Project B

August 2019 September 2019

New Business / Repeat Client Repeat Client Pharmacovigilance Automation Pre-case processing Full service Phase III New technologies 1,400 patients Global – large APAC Post-marketing consulting GDPR compliance Global – 3 continents European Biotech Total revenue ~ £4.8m

  • ver 3 years

Total revenue ~ £17m

  • ver 3 years
slide-12
SLIDE 12

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

H1 2019 SCORECARD

| 12

Focused on pharmacovigilance &

  • rphan drug development

Service fee growth of 32.7% driven by CRO growth of 32.3% and PV growth of 33.1%

Orphan drug strategy gaining traction; overlap with PV offers cross-selling potential

45% of CRO new business won in H1 2019 was orphan drug related

2019 growth targets underpinned

Contracted backlog of £118.3m at 30 June 2019

Significant H1 2019 financial performance improvement

EBITDA (adj.) in H1 2019 of £6.5m vs £0.0m in H1 2018

slide-13
SLIDE 13

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

GLOBAL PLATFORM – FULL SERVICE

| 13

750+

employees

300+

contractors Clinical trials in 59 countries Supporting products in

100+ countries

16

  • ffices worldwide

Combined PV / specialized CRO ~20%

growth

Public / AIM- listed

(LSE: ERGO)

Biotech / small pharma $80m+

PV / CRO revenue

slide-14
SLIDE 14

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Ergomed - mid-tier specialist CRO within reach

EXPLOITING POTENTIAL IN THE CRO MARKET

| 14

MID-TIER Characteristics

  • $100m+ CRO revenue
  • Global (excl Asia)
  • 1,000+ employees
  • Pure CRO models

Dynamic

  • Double digit growth
  • PE-owned
  • Biotech / small pharma
  • No / small PV

LARGE Characteristics

  • $2Bn+ CRO revenue
  • Global
  • 10,000+ employees
  • Multi-divisional

Dynamic

  • Mostly publicly owned-US
  • Single-digit growth
  • Consolidating
  • Big pharma orientated
slide-15
SLIDE 15

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

CONFIDENCE IN MARKET

| 15

Global CRO market

$26.9bn (2018)

6% p.a. growth (2018-2022)

Target areas for future growth

target markets in

high growth areas

Biotech / spec pharma

$14.0bn market (2018)

  • utsourcing 66% to 77% (2018-2022)

Oncology

$9.9bn market (2018)

9% p.a. growth (2018-2022) Orphan drug / rare diseases

$7.2bn market (2018)

11% p.a. growth (2018-2022) Pharmacovigilance

$2.4bn market (2018)

16% p.a. growth (2018-2022) USA focus

>50%

clinical trials need US presence

Sources: Grand view Aspects, clinicaltrials.gov, AT Kearney, William Blair & Company

slide-16
SLIDE 16

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

STRATEGY FOR ACCELERATED GROWTH

SOLID 2ND HALF AND TRANSITION TO 2020 AND BEYOND

  • Strong backlog and pipeline provide good visibility to H2 and beyond
  • Complete work in progress on integration to maximise cost synergies
  • Complete integrated commercial team and drive new sales
  • Continue to strengthen leadership team and bed in recent changes
  • Explore funding options to provide headroom and capacity for growth
  • M&A opportunities – strategic and disciplined approach
  • Continue drive for global leadership in:
  • Pharmacovigilance
  • Oncology and Orphan Drug development
  • Cautious and disciplined stewardship of co-development assets

| 16

STRATEGIC EXPANSION INTO NEW MARKETS - GEOGRAPHIC AND THERAPEUTIC

slide-17
SLIDE 17

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

APPENDIX

| 17

  • 18. IFRS16
  • 19. IFRS15
  • 20. Income Statement
  • 21. Balance Sheet
  • 22. Cash Flow

23-27. Ergomed’s Business Segments

slide-18
SLIDE 18

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

IFRS 16 – Impact on H1 2019 of IFRS 16 reporting of right of use assets

IMPACT OF FINANCIAL REPORTING CHANGES

| 18

Income statement Six months to 30 June 2019 IAS 17 IFRS 16 Unaudited

(Figures in £000’s)

1st Half 2019

EBITDA impact Operating profit impact Total impact

As reported

Total Revenue 35,179

  • 35,179

Gross Profit 14,489

  • 14,489

EBITDA (adjusted) 5,614 867 6,481 Amortisation and depreciation (1,123) (803) (1,926) Operating profit 4,130 64 4,194 Finance cost (1) (123) (124) Profit before tax 4,205 (59) 4,146 Profit after tax 3,668 (59) 3,609 Earnings per share (pence) - basic 7.9p (0.1)p 7.8p

slide-19
SLIDE 19

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

IFRS15 – Impact on H1 2018 originally reported under IAS18, now under IFRS15

IMPACT OF FINANCIAL REPORTING CHANGES

| 19 Income statement Six months to 30 June 2018 IAS 18 IFRS 15

(Figures in £000’s)

Originally reported Adjustment Revised reporting Total Revenue 25,338 386 25,724 Gross Profit 8,589 386 8,975 EBITDA (adjusted) (432) 386 46 Operating loss (2,546) 386 (2,160) Loss before tax (2845 386 (2,459) Tax (83) 11 (72) Loss after tax (2,928) 397 (2,531) Basic EPS (loss) (p) (6.6)p 0.9p (5.7)p

Balance Sheet At 30 June 2018 IAS 18 IFRS 15

(Figures in £000’s)

Originally reported Adjustment Revised reporting Non Current Assets 38,720

  • 38,720

Current Assets 22,162 (382) 21,780 Current Liabilities (11,493) (1,433) (12,926) Net Current Assets 10,669 (1,815) (8,854) Non Current Liabilities (13,348) (4) (13,352) Net Assets 36,041 (1,819) 34,222 Total Equity 36,041 (1,819) 34,222

Cash Flow

Nil - Non-cash adjustment so no impact

Backlog

91.4 1.8 93.2

slide-20
SLIDE 20

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

ABBREVIATED PROFIT AND LOSS ACCOUNT

Unaudited (Figures in £ millions, unless otherwise stated) 1st Half 2019 Restated 1st Half 2018

Total Revenue 35.2 25.7 Cost of Sales (14.8) (13.2) Reimbursable expenses (5.9) (3.5) Gross Profit 14.5 9.0 Administrative and Other Expenses (9.2) (10.3) Research & Development (0.3) (0.9) Net impairment losses and other operating income (0.8) 0.0 Operating Profit / (Loss) 4.2 (2.2) Net Finance Costs & Investment Income (0.1) (0.3) Profit / (Loss) Before Taxation 4.1 (2.5) Taxation (0.5) (0.1) Profit / (Loss) After Taxation 3.6 (2.6) Adjusted EBITDA (after exceptional and other items) 6.5 0.0 Earnings / (Loss) Per Share (pence) - basic 7.8p (5.7)p

Adjustments are made to EPS for amortisation of acquired fair valued intangible assets, share-based payment charge, deferred consideration for acquisitions relating to post acquisition remuneration, acquisition costs and exceptional items.

| 20

slide-21
SLIDE 21

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

ABBREVIATED BALANCE SHEET

Figures in £ millions, unless otherwise stated Unaudited 30 Jun 2019 Restated Unaudited* 30 Jun 2018 Audited 31 Dec 2018

Non-current Assets 27.1 38.7 21.4 Current Assets 26.4 21.8 25.5 Current Liabilities (14.8) (12.9) (17.2) Net Current Assets 11.6 8.9 8.3 Non-current Liabilities (5.3) (13.4) (1.3) Total Net Assets 33.4 34.2 28.4 Total Equity 33.4 34.2 28.4 | 21

slide-22
SLIDE 22

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

ABBREVIATED CASH FLOW

Unaudited (Figures in £ millions, unless otherwise stated) 1st Half 2019 1st Half 2018

Operating Profit / (Loss) 4.2 (2. 2) Add: Depreciation & Amortisation 1.9 1.3 Share based payment charge 0.4 0.4 Exceptional items and acquisition costs 0.5 EBITDA (adjusted) 6.5 0.0 FX and Other Non Cash items (0.7) (1.0) (Increase)/Decrease in Working Capital (2.3) 2.3 Net Cash Inflow from Operations 3.5 1.3 Taxation (0.3) 0.5 Investing Activities (1.3) (1.4) Financing Activities 0.8 3.7 Increase in Cash 2.7 4.1 Effect of FX on cash balances 0.2 0.1 Opening Cash Balance 5.2 3.2 Closing Cash Balance 8.1 7.4 | 22

slide-23
SLIDE 23

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Business enabler for biotech and pharma

PV & MEDICAL INFORMATION SERVICES

ESSENTIAL PHARMACOVIGILANCE PROCESSES ALL COVERED BY PRIMEVIGILANCE

Data collection Signal detection Risk assessment Communication Decision making Regulatory action No action

PV: Ensuring drugs get on the market quicker & stay there, even if benefit-risk profile is challenged by regulators. Automation accelerated growth. Medical Information: Multi-lingual call centres for enquiries of healthcare professionals, receipt of safety information and product quality complaints, other customer-specific services

| 23

Global Market Insights, Inc.; March 15, 2018

Pharmaco- vigilance market

$2.4bn (2018)

↑ 16% p.a. growth (2018-2022)

16%

PV industry growth

50%

contract outsourcing by 2024

ADRs ↑

Exponential growth of data in the system, including adverse drug reactions

slide-24
SLIDE 24

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Critical business enabler in both developed and emerging markets

PHARMACOVIGILANCE (PV) SERVICES

Pharmacovigilance

The science and activities relating to the detection, assessment, understanding and prevention of adverse effects, or any other drug related problem. (WHO, 2002)

Essential Intermediate Premium

Case processing Signal management Pharmaco-epidemiology Aggregate reports Risk management Additional risk minimisation PSMF + SOPs + business continuity EU QPPV Local QPPVs PV referral procedures Internal audits External audits and inspections Strategic consultancy

| 24

Technology / automation Expertise / experience

450+

Employees

130+

Customers Services marketed in

100+

countries

£27.5 m

Revenue in 2018

>23%

growth in sales, majority new business won

slide-25
SLIDE 25

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Reinforcing our position in orphan drug development services.

PHARMACOVIGILANCE (PV) SERVICES

Formation of PrimeVigilance in UK Acquisition of Sound Opinion – UK MI company Acquisition

  • f PharmInvent –

expert regulatory and PV Company Launch of Medical Information IPO on AIM

Consistent growth

Revenues (£m)

Good client retention

Revenues by customer cohort (£m)

2008 2013 2014 2015 2016 2018 2018

Acquisition

  • f Harefield –

small UK PV provider Acquisition

  • f Mesama -

specialist pharmacoepi demiology services | 25

0.0 5.0 10.0 15.0 20.0 25.0 30.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Million

0.0 5.0 10.0 15.0 20.0 25.0 30.0 2013 2014 2015 2016 2017 2018 2013 & before 2014 2015 2016 2017 2018

slide-26
SLIDE 26

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Efficient management and control of complex trial protocols

CLINICAL RESEARCH SERVICES

| 26

In its Clinical Research Services division, Ergomed undertakes on behalf of our clients all facets of clinical trial management and execution from Phase I to IV.

£26.6 m

Revenue in 2018

111

Active studies

300+

Employees and consultants

59

Active clients

Ergomed CRO – Service Fee (€m)

The underlying CRO revenue has been growing at 18% CAGR

  • ver the past 5 years, excluding revenue attached to Co-

Development projects and acquisitions

Clinical trials in

53

countries 5 10 15 20 25 2014 2015 2016 2017 2018 Full Service cash PSR cash Co-Development cash Equity share discount

slide-27
SLIDE 27

www.ergomedplc.com www.ergomedplc.com www.ergomedplc.com

Personalised medicine Regulatory framework Speed to market Exclusivity Pricing

Orphan Drug trials are complicated by the nature and types

  • f therapy and patient recruitment.

Specialist knowledge combined with tailored recruitment and site management required for optimal outcomes.

Focus: global leadership in Orphan Drug development

CLINICAL RESEARCH SERVICES

| 27

21%

  • f all prescription

11%

p.a. growth

$7.2bn (2018)

11% p.a. growth (2018-2022)

30m

people suffer from orphan disease

ORPHAN DRUG MARKET GROWTH DRIVERS

5 10 15 20 25 30 Endocrinology Immunology & Infect. Dis. Nephrology Dermatology Pulmology Ophtalmology Urology CNS & Neurology Metabolic Disease

  • Cardiovasc. & Haematology

Oncology PSR Ergomed 58% 42% 68% 32% NON-RARE RARE

Full Rare Disease Experience per Therapeutic Area

2018 Revenue 2018 Studies