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Ergomed expects earnings below market consensus despite top line growth
Pharmaceutical services and drug development company Ergomed announced on Monday that it expects its adjusted earnings to be lower than the market consensus.
Despite forecasts for full-year top line growth of 21% to £47m, Ergomed said in a statement that foreign exchange losses related to assets and liabilities would see its bottom line fall £900,000 short of the market consensus.
Revenue growth was driven by a 68% jump in sales at its Drug Safety & Medical Information services arm, a part of the company's service business, while the overall backlog of contracted future work stood at £88m.
Stephen Stamp, Chief Executive Officer of Ergomed, said: "2017 has been a year of exceptional growth and clinical success and it is unfortunate that these late adjustments have just come to light. We believe that our re-focused strategy to take leadership positions in pharmacovigilance and orphan drug development services will take us to the next level. Recent investment in systems will support that growth, most of which remains in front of us."
The company also forecast research and development costs to be £0.3m higher than market consensus after the faster than anticipated completion of the PeproStat Phase II trial.
The Guildford-based company will release its final results on 28 March.
As of 1052 GMT, Ergomed's shares were down 7.14% at 194.00p.