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Ergomed buys US pharmacovigilance services provider for $10M

London-listed Ergomed PLC said it acquired U.S.-based pharmacovigilance services provider Ashfield Pharmacovigilance Inc. for $10 million.

Ergomed bought Ashfield from UDG Healthcare PLC, and plans to combine it with its PrimeVigilance division, which offers pharmacovigilance services that are meant to detect and prevent adverse effects or any other possible drug-related problems during the development of a medicine.

Ashfield generated $11.6 million in revenues during the financial year ended Sept. 30, 2019, and recorded an adjusted EBITDA of $900,000. The business had net assets of $2.8 million. Ashfield Pharmacovigilance also has a backlog of sales totaling $9.8 million.

Ergomed said it would fund the purchase using existing cash resources and that it expects to acquisition to contribute toward its 2020 earnings.