UDG.L Share News (UDG)

(Sharecast News) - Pharmaceutical services provider Ergomed announced the acquisition of Ashfield Pharmacovigilance, a specialist pharmacovigilance services provider based in Cary in the 'Research Triangle' of North Carolina on Monday.
The AIM-traded firm said it was acquiring Ashfield Pharmacovigilance from UDG Healthcare US Holdings, the US operating subsidiary of UDG Healthcare, and said it was purchasing the entire issued share capital of Ashfield for a total cash consideration of $10m (£7.7m).

It described Ashfield Pharmacovigilance as a "long-established and respected" provider in the pharmacovigilance services sector.

The company was founded as Drug Safety Alliance (DSA) in 2000, and was acquired by UDG in 2012.

It had maintained an "excellent" reputation as a leader among a small field of expert independent specialist pharmacovigilance providers in North America, Ergomed explained.

The acquisition aligned with Ergomed's strategy to grow its existing profitable services business both organically and through acquisition, and advanced a number of important strategic objectives for the company, the board said.

"The acquisition of Ashfield PV is a major step forward for Ergomed in the strategically important US market," said executive chairman Dr Miroslav Reljanović.

"It provides a significant US pharmacovigilance presence and access to a genuinely global offering for customers.

"It also strengthens the US platform for the Ergomed CRO business as we continue our drive towards becoming a leading mid-tier pharmaceutical services specialist with a global presence."

Dr Reljanović said the company was "enthusiastic" about bringing together the specialist skills and expertise of both businesses, and providing the full benefit of the combination to its clients.

"We look forward to welcoming the Ashfield PV team into Ergomed's PrimeVigilance division and to working with them to grow the combined business."

Lee Chaiken, senior vice-president and general manager of Ashfield PV, added that the company was "delighted" to join the PrimeVigilance business, and to have the opportunity to work within the Ergomed group.

"With our existing strong service and loyal clients in North America, we are confident that combining with PrimeVigilance will provide a platform to grow the combined pharmacovigilance business through additional services, market-leading systems and extended coverage globally."

At 1036 GMT, shares in Ergomed were up 6.26% at 414.4p.