Ergomed — H1 2020 Earnings Presentation
22 slides from Ergomed's earnings presentation, Sep 22, 2020
Slide 1: Transforming Drug Development - Interim Results H1 2020
TRANSFORMING DRUG DEVELOPMENT plc Interim Results H1 2020 22 September 2020
Slide 2: Disclaimer
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 p
Slide 3: Presenters
Presenters Dr Miroslav Reljanović Executive Chairman Richard Barfield Chief Financial Officer 3 www.ergomedplc.com
Slide 4: Our Vision
OUR VISION Global specialized leadership in Orphan Drug Development and Pharmacovigilance 4 www.ergomedplc.com
Slide 5: H1 2020 Headlines
H1 2020 Headlines Continuing growth through challenging times 26% Service Fee Revenue 79% North America Revenue Growth 40% Adjusted EBITDA 1 Jan 2020 850 30 June 2020 970 14% Now >1,000 Employees 5 www.ergomedplc.com
Slide 6: H1 2020 Highlights
H1 2020 Highlights Resilience and continued momentum • Excellent financial performance in H1 2020 • Full focus on services business model • Robust response to COVID-19 pandemic • Resilient performances from PV and CRO • Successful acquisition and integration of PrimeVigilance USA • Strong sales perf
Slide 7: Ergomed's COVID-19 Response
Ergomed’s COVID-19 Response Resilient positioning and response, contributing to COVID-19 research • Services in both PV and CRO are provided: • under long-term contracts • for essential medical research • to meet mandatory PV requirements • Smooth transition to remote working in both PV and CRO • Go
Slide 8: Management Team
Management Team Strength in depth Miroslav Reljanovic, MD Founder & Executive Chairman Richard Barfield Gordana Tonkovic, MD Jonathan West Roy Ovel Sally Amanuel Chief Financial Officer President, CRO Business President, PrimeVigilance Chief Commercial Officer Head of Regulatory and Clinical Deliver
Slide 9: H1 2020 Income Statement
H1 2020 Income Statement Service strategy drives revenue and profit growth H1 H1 (£ millions, unless stated) 2020 2019 Focus on services business model drives financial performance ______________________________________________________ Total Revenue 40.4 35.2 • Revenue up 14.8% • Service Fee revenue
Slide 10: Focus on Services Business Model
Focus on Services Business Model Strong service fee revenue and gross margin LFL Service Fee Revenue Growth LFL Service Fee Gross Margin CRO Business PrimeVigilance PrimeVigilance USA £18.5m £36.9m 50.0% 4.2 PV USA 2.1 PV USA £12.8m £27.7m 46.0% 11.3 21.6 51.9% 7.6 15.8 47.8% 5.2 5.1 11.9 11.1 43.7%
Slide 11: Strategic Transition to Full Service revenue
Strategic Transition to Full Service revenue Co-development revenue declining significantly H1 2019 to H1 2020 H1 2019 CRO H1 2020 CRO Service Fee Revenue Service Fee Revenue Co-Dev Service Fee 3rd Party Service Fee Co-Dev Service Fee 3rd Party Service Fee 10.0 12.0 3rd party Service Fees 9.0 65.9%
Slide 12: Geographic Analysis of Revenue by Client Location
Geographic Analysis of Revenue by Client Location Significant client growth in North America Total H1 2019 Total H1 2020 Revenue - £35.2m Revenue - £40.4m 1% 4% 18% 16% 33% 52% 28% 48% Total revenue up 14.8% Service Fee revenue up 25.9% UK EU / EMEA N America Asia N America up 79% from £11.6m to £20
Slide 13: Strong growth in order book and sales
Strong growth in order book and sales Underpins high forward visibility Contracted Order Book Growth Sales New Awards Growth £60.2m £151.4m PV USA £7.6m £118.3m £49.0m H1 2019 H1 2020 H1 2019 H1 2020 13 www.ergomedplc.com
Slide 14: Cash Flow
Cash Flow Strong operating cash flow funds PrimeVigilance USA acquisition Cash Flow H1 2020 Cash Balance – H1 2020 16 14.3 14.1 14 Acquisition of 12 PV USA £8.1m 10 8 6 4 FX 2 0 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 14 www.ergomedplc.com
Slide 15: Proposed Capital Reduction
Proposed Capital Reduction Circular to be issued for shareholders’ approval Balance Sheet at 31 December 2019 Consolidated Ergomed Plc Elimination of parent company retained earnings deficit £000's Group Company ___________________________________________________ • At 31 December 2019, group net ass
Slide 16: PrimeVigilance Resilience
PrimeVigilance Resilience Steady course held with continuing revenue growth • Pharmacovigilance is a regulatory requirement, and must be conducted even during a pandemic • Moved seamlessly to home-working model, with over 90% staff now remote • Excellent IT and telecommunications kept all staff conn
Slide 17: PV Digital Transformation
PV Digital Transformation Leveraging a portfolio of technologies to achieve state of the art PV Services Full engagement with DataRobot and Oracle Argus Automation Anywhere Safety Database • Development of applications for automated Adverse Event processing • First phase focussed on RPA to digitise
Slide 18: PrimeVigilance USA Integration
PrimeVigilance USA Integration Ashfield PV - acquired 10 January 2020 Operational integration completed to plan US presence drives substantial new awards & increased pipeline in PV and CRO Rebranded to PrimeVigilance USA Inc Potential loses New Clients New Client Retained Contracted New Business Ope
Slide 19: CRO COVID-19 Resilience
CRO COVID-19 Resilience Challenges and Solutions COVID-19 impact on business Our approach Regulatory Restrictions & halts • Unique Regulatory Intelligence Tool ensures agile approach to • COVID-19 related studies are prioritized by regulatory comply with many regulatory changes throughout COVID pand
Slide 20: Focus on Delivering Excellence in CRO Services
Focus on Delivering Excellence in CRO Services COVID-19 Resilience Case Studies PROJECT A PROJECT B PROJECT C ISRAELI CLIENT US CLIENT JAPANESE CLIENT Oncology Global Phase I/II – Gastrointestinal Global Oncology Global Phase IIa – Head and Neck Cancer Study – Ulcerative Colitis Head and Neck Cancer
Slide 21: Summary
Summary ▪ Continued strong growth trend in ▪ Rapid and successful integration of revenues and profits PrimeVigilance USA ▪ Margins maintained in challenging ▪ Accelerated growth in N America market markets ▪ Global leadership position in ▪ Demonstrated resilience and ability to pharmacovigilance, on
Slide 22: Q&A
Q&A TRANSFORMING DRUG DEVELOPMENT plc Interim Results H1 2020 22 September 2020