Ergomed — FY2020 Earnings Presentation
25 slides from Ergomed's earnings presentation, Mar 23, 2021
Slide 1: Transforming Drug Development: Preliminary Results 2020
TRANSFORMING DRUG DEVELOPMENT plc Preliminary Results 2020 23 March 2021
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 specialised leadership in Orphan Drug Development, Oncology and Patient Safety 4 www.ergomedplc.com
Slide 5: At a Glance – Global Platform
At a Glance – Global Platform Full service specialist Our geographic reach 16 £86.4m 20%+ offices 2020 total revenue revenue CAGR worldwide up 26.5% last six years North America Europe MENA Asia-Pacific >100 82% 1,150 • 4 offices strategically • Robust infrastructure • Ergomed is one of the • The As
Slide 6: Market Update
Market Update Ergomed focused on high growth sectors Oncology $15.6bn 9.2% p.a. growth (2020 – 2026) Global CRO market Rare disease (non-oncology) $42.3bn $5.6bn target markets in 10.8% p.a. growth (2020 - 2026) 6.6% p.a. growth (2020 – 2026) high growth areas Pharmacovigilance $5.1bn 15.8% p.a. gro
Slide 7: Market Opportunity: Competition and consolidation
Market Opportunity Competition and consolidation Large Consolidation COMPETING • $1bn+ CRO revenue • IQVIA (IMS + Quintiles) Companies • Global public companies • Syneos (INC + Inventiv) 6-8 • 10,000+ employees • ICON PRA • Mid single digit growth • Big pharma oriented Mid-tier Consolidation • $100m
Slide 8: 2020 Headlines
2020 Headlines Continuing growth through challenging times 32% Service Fee Revenue 82% North America Revenue Growth 55% Adjusted EBITDA 1 Jan 2020 850 Ashfield PV + 65 MedSource + 110 Organic + 125 35% Employees 31 December 2020 >1,150 8 www.ergomedplc.com
Slide 9: 2020 Highlights
2020 Highlights Resilience and continued momentum • Excellent financial performance in 2020 • Strategic transition • Transition to services business model completed • Resilient response to COVID-19 pandemic • Successful acquisition and integration of Ashfield PV and MedSource • Starting 2021 with so
Slide 10: 2020 Income Statement
2020 Income Statement Excellent financial performance Transition to services model concluded (£ millions, unless stated) 2020 2019 ______________________________________________________ Total Revenue 86.4 68.3 • Revenue up 26.5% • Service Fee revenue up 32.4% Gross Profit 39.7 29.5 • Like-for-like S
Slide 11: 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 £39.7m £78.4m 50.6% 9.2 £27.9m £57.6m 48.4% 28.7 45.5 52.4% 18.2 34.9 52.2% 9.7 11.0 22.7 23.7 42.6% 46.3% 2019 20
Slide 12: CRO Returns to Growth
CRO Returns to Growth LFL Service Fee Revenue Annual Service Fee Growth H2 2020 over H1 2020 H2 2020 over H2 2019 Service Fee Growth Service Fee Growth 23.7 12.6 12.6 22.7 11.1 10.8 FY 2019 FY 2020 H1 2020 H2 2020 H2 2019 H2 2020 12 www.ergomedplc.com
Slide 13: Strategic Transition to Full Service Revenue
Strategic Transition to Full Service revenue 3rd party Service Fees up 17% 2019 to 2020 2019 CRO 2020 CRO Service Fee Revenue Service Fee Revenue Co-Dev Service Fee 3rd Party Service Fee Co-Dev Service Fee 3rd Party Service Fee 24.0 3rd party Service Fees 24.0 22.0 up 17% to £21.5m 22.0 20.0 20.0 90
Slide 14: Geographic Analysis of Revenue by Client Location
Geographic Analysis of Revenue by Client Location Significant client growth in North America Total 2019 Total 2020 Revenue - £68.3m Revenue - £86.4m 2% 5% 19% 14% 37% 54% 27% 42% Total revenue up 26.5% Service Fee revenue up 32.4% UK EU / EMEA N America Asia N America up 82% from £25.6m to £46.7m UK
Slide 15: Sales and Order Book
Sales and Order Book 2020 sales and order book underpin forward visibility Sales New Awards Growth Contracted Order Book Growth £193.0m £117.8m £83.0m £124.1m 2019 2020 2019 2020 15 www.ergomedplc.com
Slide 16: Cash Flow
Cash Flow Strong operating cash flow funds PrimeVigilance USA and MedSource acquisitions Acquisition of Cash Flow 2020 Cash Cash Balance – 2020 Balance 2020 MedSource £4.4m 25 19.0 -0.1 19.0 20 Acquisition of 19.0 PV USA £7.6m 14.3 -7.6 £ millions £ millions 14.3 15 -4.4 10 -2.3 1.9 -0.9 -0.9 5 0 De
Slide 17: COVID-19 Accelerates Technology Adoption
COVID-19 Accelerates Technology Adoption Remote Our approach Patient Monitoring • Regulators accepting a wider uptake of decentralized/virtual trials • Robust solutions for Remote Patient Monitoring includes risk-based Patient eConsent Concierge and monitoring, remote data verification to ensure pat
Slide 18: CRO Therapeutic Area Focus
CRO Therapeutic Area Focus Oncology & Rare Disease Focus 2019 Oncology & Rare Focus – 2020 Oncology & Rare Focus – New Business New Business 12% £3.9m 33% 31% £8.3m £7.9m 22% £7.5m 66% £22.2m £8.8m 35% Oncology Rare Other Oncology Rare Other 18 www.ergomedplc.com
Slide 19: MedSource
MedSource A key strategic acquisition MedSource acquisition by numbers • Acquisition closed on 11 December 2020 Revenue (Mkt Exp to 31 December 2021) • Complementary specialism in oncology and rare disease $30.0m EBITDA (Mkt Exp to 31 December 2021) • Over 200 oncology trials executed in the US over
Slide 20: PV Digital Transformation
PV Digital Transformation Leveraging a portfolio of technologies to achieve state of the art PV Services 2020 Achievements Oracle Argus • Developed Automation Anywhere tool for the digitization of Safety structured Adverse Event reports Database • Continued development of the ASaPPV tool (Automated
Slide 21: PrimeVigilance Resilience
PrimeVigilance Resilience Steady course held with continuing revenue growth through COVID-19 Excellent client retention Revenues by customer cohort (£m) • Business Continuity Plan successfully executed 60 • Rapid and efficient transition of c. 700 staff to 50 remote working 40 30 • Productivity incr
Slide 22: PrimeVigilance USA Integration
PrimeVigilance USA Integration Ashfield PV - acquired 10 January 2020 ✓ Rebranded to PrimeVigilance USA Inc +£10.1m ✓ Operational integration complete Total 2020 Amount Contracted ✓ Strong synergies from Management integration ✓ Ergomed Inc. registered office transferred to Cary, NC +£17.5m ✓ US pre
Slide 23: Cross Selling Opportunities
Cross Selling Opportunities CRO and PrimeVigilance PrimeVigilance Sales to CRO Clients CRO Sales to PrimeVigilance Clients Current Pipeline £20.6m £30.4m £51.0m Contracted in 2020 £1.3m £7.3m £8.6m 23 www.ergomedplc.com
Slide 24: Summary
Summary ▪ Strategic focus in oncology and rare ▪ Continued strong organic growth in disease / orphan drugs and revenues and profits pharmacovigilance ▪ Successful cross-selling between PV and ▪ Focus on technology as a driver of CRO into enlarged customer base future growth and differentiation in bo
Slide 25: www.ergomedplc.com
ERGGMED 25 www.ergomedplc.com ERGGMED