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Ergomed raises £3.9mln as it looks to develop its PrimeVigilance business

The AIM company issued 2.03mln new shares – equivalent to around 5% of the company – at 190p apiece
scientist in lab with test tube in hand
PrimeVigilance is Ergomed’s specialised pharmacovigilance and medical information service provider

Pharma services and drug development company Ergomed PLC (LON:ERGO) has successfully raised £3.9mln from investors as it looks to bolster its PrimeVigilance platform.

The AIM-quoted firm sold 2.03mln new shares – equivalent to around 5% of the company – at 190p apiece, it said in a statement on Thursday.

READ: Ergomed update underlines the potential of the company's PrimeVigilance unit

The cash injection will be used to fund small bolt-on acquisitions that would enhance its Drug Safety & Medical Information business, which includes PrimeVigilance.

Ergomed said developing a state-of-the-art technology platform is “critical” for executing PrimeVigilance’s growth strategy.

Ergomed’s IT platforms will also benefit from the funds, while the rest of the money will be used to provide the company with additional working capital.

READ: Ergomed's finance chief appointed chief executive; welcomes new COO

“This placing provides us the flexibility to move forward on a number of fronts, in particular securing and enhancing the technology platform to advance our leading market position and drive further growth in our Drug Safety & Medical Information business,” said chief executive Stephen Stamp.

Last week, Ergomed told investors that, for the year ended December 31, service revenue increased 35%, new service business won totalled £54mln and there is a contracted order book backlog of £88mln.

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