UK pharmaceutical company Ergomed has acquired PSR Group, a Dutch contract research organization (CRO) that specializes in orphan drug development and is regarded as a leading expert in rare diseases, for a total price of €5.7 million.

Under the terms of the transaction, Ergomed has made an initial payment of €3.2 million with a further sum of up to €2.5 million contingent upon achieving EBITDA targets in 2017, 2018 and 2019.

Ergomed said it would continue to grow the business under the PSR brand and remain focused on the two divisions - PSR Orphan Experts, which supports biotech and pharma companies with their regulatory and clinical development of orphan drugs, and PSR Pharma Resource, a niche staffing provider focused on orphan drug specialists.

Ergomed’s CEO, Dan Weng, said the acquisition fits with its strategy of becoming a leader in orphan drug development. PSR’s CEO, Roger Legtenberg added that it welcomed the opportunity to expand its portfolio and geographical coverage by leveraging Ergomed’s international reach and complementary services.

According to Ergomed, there is a total of 30 million people worldwide suffering from rare diseases. Consequently, the orphan drug market to target these diseases continues to grow, requiring highly specialized providers because of the regulatory, logistical and operational complexities of conducting clinical trials.