Ergomed is a UK-based provider of drug development services to the pharmaceutical industry. Dedicated to the provision of specialised pharmaceutical services and the development of new drugs, the group offers solutions for clinical development and trial management challenges from early phase to complex late-stage programmes. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalisation of £218 million.
Ergomed shares have performed very well over the last 12 months,rising over 140%. The stock has been boosted by strong financial results, as well as a number of encouraging trading updates. Most recently, the group advised on 29 January that it has continued to deliver strong year-on-year top-line growth and financial performance across the business since its half-year results, and that it expects EBITDA for the year ended 31 December 2019 to be ahead of current market expectations. Chairman Dr Miroslav Reljanović added: “With a robust financial position, strong order book and strengthened leadership team, we are firmly positioned to deliver on the promise of becoming a leading mid-tier pharmaceutical services specialist with a global presence.”
Source: 2iQ Research
What looks interesting here is that in the last week four directors – including COO Lewis Cameron – have purchased shares in Ergomed. Combined, these four insiders acquired 40,910 shares, spending a total of approximately £187,000 on stock. In our view, this is a bullish signal as these directors are likely to have good insight into the company’s future prospects. With the company recently advising that it expects full-year EBITDA to be ahead of market expectations, and multiple insiders buying shares, we think the outlook for Ergomed is favourable.