Ergomed pays €5.7M for orphan drug CRO

The CRO will boost its footprint as well as its offerings.

U.K.-based trial services company Ergomed has penned a deal to buy PSR Group BV, a specialist orphan drug CRO, as it adds orphan drug development services to its offerings.

The company will buy the niche, Netherlands-based contract research organization for a total consideration of up to €5.7 million, as it also seeks to raise gross proceeds of £2.9 million to help pay for the buyout.

Dan Weng, CEO of Ergomed, said: “This acquisition aligns with the strategy laid out at IPO of seeking to grow our existing, profitable service business both organically and through strategic acquisitions, and specifically of becoming a leader in orphan drug development.

“We are looking forward to combining PSR’s specialist skills and Ergomed’s global infrastructure to rapidly develop this business based on our combined strengths. PSR has successfully demonstrated its leading capabilities in this area and its addition to the group complements Ergomed’s existing highly regarded orphan disease specialism. We welcome PSR’s team and are pleased to increase our capabilities in an underserved and growing area.”

Dr. Roger Legtenberg, CEO of PSR Group, added: “PSR welcomes the opportunity to expand its current services portfolio and geographical coverage by leveraging Ergomed’s international reach and complementary services. We will continue to make a significant contribution to the availability of new orphan drug treatments, improving the lives of patients and their families impacted by rare diseases. We look forward to joining the group and contributing to its growth and success.”

Ergomed said that PSR’s “extensive expertise in orphan drug development” will dovetail with its own services and boost its global geographical footprint, including its presence in the MENA region, an area which is important for orphan drug development.