Sound Opinion, one of UK's leading Medical Information service providers, to be integrated with PrimeVigilance
Acquisition expands post-marketing services
London, UK: Ergomed plc, (LSE: ERGO or 'Ergomed') a profitable UK-based company, dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs announces that it has made the strategic acquisition of Sound Opinion, one of the UK's leading Medical Information (MI) service providers. Sound Opinion will be combined with Ergomed's existing fast growing post-marketing business – PrimeVigilance. The acquisition, which is expected to be accretive in the first year, will be paid for from existing cash reserves with an earn-out based on future performance.
In line with Ergomed's preferred acquisition targets, Sound Opinion is a strong brand and has been trading profitably for over 18 years, providing high quality outsourced MI services to pharma and generic companies selling medicines in the UK and Ireland. Sound Opinion had a turnover of £340k for the year ending 31 March 2015.
This acquisition is the next step in Ergomed's strategy of strengthening the group's presence in the fast growing pharmaceutical post-marketing services sector that was started with the acquisition of PrimeVigilance at the IPO in July 2014. Ergomed believes that there are good opportunities for rapid expansion in this under-served market.
Sound Opinion will be immediately combined with the existing MI business of PrimeVigilance that has an established UK and international footprint including native speakers in a number of European and other languages. The medium term strategy is to build out the combined strength in UK MI services into the main European markets whilst continuing to expand in the UK.
The current operational staff and management of Sound Opinion will all stay involved with the business after completion.
Commenting on the acquisition, Miroslav Reljanovic, Chief Executive Officer of Ergomed, said: "The acquisition of Sound Opinion is in line with Ergomed's strategy to expand our post-marketing services capacity, a sector we think is critical to the future approval of new medicines and treatments. Medical Information is a very good fit with our leading presence in pharmacovigilance and drug safety through the PrimeVigilance brand, and we are extremely pleased to acquire Sound Opinion with its strong legacy and existing client business. I would like to welcome the Sound Opinion clients and staff to Ergomed and look forward to working with them."
For further information, please contact:
Hume Brophy
Mary Clark, Supriya Mathur and Hollie Vile
Tel: + 44 203 440 5654
[email protected]
Stifel Nicolaus Europe Limited
NOMAD/Broker to the Company
Jonathan Senior, Giles Balleny
Tel: + 44 207 710 7600
About PrimeVigilance
The pharmacovigilance services offered by PrimeVigilance support essential regulatory and scientific elements required to obtain and maintain a product license within Europe. This includes Qualified Persons, a compliant PV System with robust Quality Management, consistent Adverse Event data capture, expedited reporting, literature screening, preparation of Periodic Safety Update Reports, signal detection and evaluation, benefit-risk assessment, Risk Management Planning, compliance auditing, support during crisis and ad hoc consulting assignments. PrimeVigilance also offers a multi-language Medical Information service. PrimeVigilance has grown organically since 2008 and now has approximately 140 staff employed in its main offices in Guildford UK, and Zagreb, Croatia, as well as an international network of consultants. PrimeVigilance is currently providing services across more than 100 countries. For more information please visit www.primevigilance.com
PrimeVigilance also offers all Medical Information clients high quality full service pharmacovigilance solutions and consultancy as required and can offer larger clients integrated IT solutions for both MI and PV services using the ARISg 7 PV system and the agInquirer MI data base.
About Sound Opinion
Sound Opinion is a profitable business and has been trading for over 18 years, providing outsourced Medical Information services to pharma companies selling medicines in the UK and Ireland Sound Opinion provides expert, real time responses to product related queries via a virtual call centre/data base solution to over 15 clients.
Forward Looking Statements
Certain statements contained within the announcement are forward looking statements and are based on current expectations, estimates and projections about the potential returns of Ergomed plc ("Ergomed") and industry and markets in which Ergomed operates, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment.
These forward-looking statements speak only as of the date of this announcement. Ergomed expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Ergomed's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.