Proactive One2One Healthcare Investor Forum · Continuing to out-pace the market with global solutions SERVICES –FAST-GROWING | 6 * Source: Transparency Market Research **Source:

www.ergomedplc.comwww.ergomedplc.com

TRANSFORMING DRUG DEVELOPMENT

1

Proactive One2One Healthcare

Investor Forum

18 May 2017

www.ergomedplc.comwww.ergomedplc.comwww.ergomedplc.com

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Building a profitable services business

combined with

sustainable product development

for significant shareholder value.

OUR MISSION

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Balanced downside protection and upside potential

HYBRID BUSINESS MODEL

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PROFITABLE, FAST GROWING,

PREDICTABLE

BREAK-OUT UPSIDE

POTENTIAL

SERVICES PRODUCTS

Global platform

Full range of services

EBITDA accretive acquisition opportunities

Diversified portfolio

Multiple shots on goal

Managed risk approach


All clinical phases and post-approval

SERVICES – COMPREHENSIVE RANGE

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SERVICES

Ergomed CRO ServicesPrimeVigilance /

PharmInvent

Phases I – III Phase IV Drug SafetyMedical

Information

Project management

Patient recruitment

Medical writing

Data management / statistics

Regulatory affairs

Quality assurance

Adverse event case processing

Medical safety review / reports

Consulting / audit

Medical information

QPPV / Qualified person


Continuing to out-pace the market with global solutions

SERVICES – FAST-GROWING

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* Source: Transparency Market Research

**Source: Global Data

£39.2m

2016 Revenue

£13.4m

£25.8m

+18% GROWTH

Clinical Research

ServicesDrug Safety &

Medical Information+63% GROWTH

CRO Services

Industry Growth

+7.5%**

PV Industry Growth

+17%*


Efficient management and control of complex trial protocols

ERGOMED CRO SERVICES: KEY DIFFERENTIATORS

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ALL CROs

STUDY PHYSICIAN

TEAM

SITE MANAGEMENT

TEAM

PROJECT MANAGER

STUDY MONITOR(S)

HOSPITAL

INVESTIGATOR

NURSES/ SITE STAFF

• Peer-to-peer support

• Develops best practice across treating centres

• Provides expertise for particular study designs

• Enhanced recruitment

• Increased retention

• More evaluable patients


Europe’s leading independent pharmacovigilance business

PRIMEVIGILANCE / PHARMINVENT SERVICES

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High customer retention leads to strong

backlog of contracts

Queens Award for Enterprise in 2014

Recent expansion into the US and acquisition of

PharmInvent s.r.o.

350+ employees supporting 100+ customers with

products marketed in 100+ countries


20 year track record of performance and execution

PROFITABLE SERVICES – GLOBAL PLATFORM

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55,000+adverse event

cases p.a.

£39m+revenue

50,000+patients studied

Ergomed Offices Longstanding Partners

500+employees

300+studies

150+active clients

Clinical trials

in 56 countries

Supporting

products in

100+countries


SHARED

INVESTMENT

Through co-development model

SUSTAINABLE PRODUCT DEVELOPMENT

30-50% reduction in fees

Ergomed investment

$1 to 15m

Ergomed focuses on Clinical

Partner focuses CMC, Pre-

Clinical, Commercialisation

COMPLEMENTARY

ACTIVITY

PROPORTIONATE

UPSIDE

Equity share of company

5-15% share of revenue

or

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Building a portfolio with significant upside potential

OUR DIVERSIFIED PRODUCT PIPELINE

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COMPOUND PARTNERNEXT

MILESTONE

PRE-

CLINICALPHASE I PHASE II PHASE III

Partnership

Multikine Cel-Sci TBD

Lorediplon Ferrer TBD

SevuparinModus

Therapeutics1H 2018

SepranoloneAsarina

Pharma EoY 2017

Multikine Cel-Sci TBD

Ownership

PeproStat 1H 2018

ReadyFlow 2H 2017

Evaluate 100+ deal opportunities per year, aim to sign two per year

Head & Neck Cancer

Insomnia

Sickle-Cell Disease

Premenstrual Dysphoric Disorder

Haemostasis

Haemostasis

Perianal warts


Global market >$2.5 billion, growing 6% pa

NEW CLASS OF COAGULANT (HAEMOSTAT)

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PATENTED FIBRINOGEN-BINDING

PEPTIDE TECHNOLOGYFOR SURGICAL BLEEDING


LOW RISK DEVELOPMENT / SIGNIFICANT MARKET POTENTIAL

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PEPROSTAT COMPLETED CLINICAL TRIAL IN 20 LIVER

SURGERY PATIENTS• Faster, no safety concerns and easy to use

PEPROSTAT: FAST TO MARKET AND LOW COST OF

DEVELOPMENT• Phase IIb 2017 - 120 patients

• Phase III 2018/2019 - 600 patients

SIGNIFICANT COMMERCIAL OPPORTUNITY• Major haemostat brands have annual sales of $100 - $300 m

• Strong patent protection

1.4 min(PeprostatTM)

3 to 6 min (Competitors)

vs

3 years

2020 market

entry

$500m combined

peak sales

potential

READYFLOW• Phase I ready 2018

• Similar development costs


Revenue and EBITDA (adjusted) ahead of expectations

2016 FINANCIAL HIGHLIGHTS

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30.239.2

2015 2016

Revenue (£m)

3.4 3.0

2015 2016

EBITDA (£m)

4.1

• Revenue up 30% to £39.2 million (2015: £30.2 million)• Excluding acquisitions, revenue up 27%

• Gross profit up 43% to £12.0 million (2015: £8.4 million)

• EBITDA (adjusted) before R&D £4.1 million (2015: £3.4 million)• After R&D (Haemostatix) £3.0 million

• Cash at bank £4.4 million at 31 December 2016 (2015: £4.0 million)

+30%

R&D


Revenue and EBITDA (adjusted) ahead of expectations

2016 OPERATIONAL HIGHLIGHTS

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28

42

2015 2016

New Business (£m)

5970

2015 2016

Contracted Backlog (£m)

• New contracts worth an initial £42 million won (2015: £28 million)

• Contracted backlog at 1 January 2017 £70 million (2016: £59 million)

• Institutional placing raised £9.2 million (gross)

• Three Services acquisitions closed

• PrimeVigilance established US office in Boston, MA

• Products pipeline enhanced through acquisition of Haemostatix and Asarina deal

+50%

+19%


Multiple value inflection opportunities near term

NEWSFLOW

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Co-development deals – target two p.a.

Services acquisitions

PeproStat™ / ReadyFlow™ out- licensing opportunities

2017 2018

• Ferrer: Phase II insomnia results

• Haemostatix: PeproStat™

Phase IIb initiated

• Aeterna Zentaris: Zoptrex™

Phase III results

• Initiation of Asarina PMDD trial


Phase IIb recruited


Phase IIb results

• Modus Therapeutics: Sevuparin

Phase II top line results

• Haemostatix: ReadyFlow™

Phase I ready


Phase III ready


Profitable Services with break-out potential from Product Portfolio

BUILDING SIGNIFICANT SHAREHOLDER VALUE

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5 Year Shareholder

value drivers

Services:

Stable profitable growth

Products:

Breakout potential

Commitment to remain overall EBITDA positive

E B

I T

D A


QUESTIONS?

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APPENDIX

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Exceeded target revenue and EBITDA (adjusted)

PROFIT AND LOSS ACCOUNT

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£000s FY 2016 FY 2015

REVENUE 39,233 30,178

GROSS PROFIT 11,994 8,370

Administrative expenses (10,483) (6,379)

Other administrative expenses (8,323) (5,186)

Amortisation of acquired fair valued intangible assets (771) (596)

Share-based payment charge (398) (288)

Deferred consideration for acquisition (690) –

Write-back of deferred consideration for acquisition 460 –

Acquisition costs (584) (272)

Exceptional items (177) (37)

Research and development (1,040) –

Other operating income 127 81

OPERATING PROFIT 598 2,072

Finance costs (net) (272) –

PROFIT BEFORE TAXATION 326 2,072

Taxation 153 (520)

PROFIT FOR THE PERIOD 479 1,552

EBITDA (adjusted) 3,014 3,382


BALANCE SHEET

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£000s31 December

2016

31 December

2015

Goodwill 12,285 7,488

Intangibles 19,842 2,819

Other non-current assets 2,436 883

NON-CURRENT ASSETS 34,563 11,190

Trade and other receivables 14,958 9,528

Clinical trial inventory 450 –

Cash and cash equivalents 4,424 3,974

CURRENT ASSETS 19,832 13,502

TOTAL ASSETS 54,395 24,692

CURRENT LIABILITIES (8,592) (7,233)

NET CURRENT ASSETS 11,240 6,269

NON-CURRENT LIABILITIES (11,195) (523)

TOTAL LIABILITIES (19,787) (7,756)

NET ASSETS 34,608 16,936

£m

2015 7.5

Haemostatix 2.1

O+P / GASD 0.5

PharmInvent 2.2

2016 12.3

£m

2015 2.8

PeproStat 13.1

ReadyFlow 2.1

OPVERDI 0.4

GASD cust. lists 0.2

PharmInvent cust. lists 1.3

Software 0.7

20.6

Amortisation (0.8)

2016 19.8


100Reviews

CDA / Due Diligence

Advanced Negotiations

DEALS

50

12

2

Co-development leverages services expertise

STRUCTURED DUE DILIGENCE PROCESS

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Desktop review by BD analysts annually

• Medically led

• Therapeutic expert

reviews

Comprehensive review covering:

• IP

• Legal

• Finance

Deals per year

• Regulation

• Clinical

• CMC

• Confidential package

• Focus on clinical need

• Commercialisation

Documents

Proactive One2One Healthcare Investor Forum · Continuing to out-pace the market with global solutions SERVICES –FAST-GROWING | 6 * Source: Transparency Market Research **Source: