US Government Contract Award
11 May 2023
("Instem", the "Group" or the "Company")
US Government Contract Award
Continuation of 10-year relationship, Secured SaaS revenue and scope for further expansion
Instem plc (AIM: INS), a leading provider of IT solutions to the global life sciences market, announces a renewal of its long-standing agreement with the National Toxicology Program (“NTP”), run by the US National Institute of Environmental Health Sciences (“NIEHS”).
This renewed contract further expands use of the Company’s Provantis preclinical software, while also providing the NTP with access, for the first time, to Instem’s genetic toxicology and safety pharmacology study management applications, as well as to powerful in silico predictive analytics. The contract is expected to underpin increased revenue visibility through additional SaaS revenues while also providing significant scope for expansion. The maximum allowable NTP expenditure during this 5-year agreement period is $16.5m.
The year one value of this order will be c.$2.0m, including initial recurring revenue of c.$0.9m, and the contract envisages Instem providing additional solutions, including the use of outsourced in silico services that would result in increased one-off and annual recurring revenue. The Company continues to develop AI and predictive analytics-based solutions, which it believes will create a growing number of touchpoints as this relationship develops.
The prior 10-year NTP contract with the NIEHS, which commenced in March 2013, generated total revenue of c.$10m over the period – with recurring revenue in the 12 months ending 28 February 2023 of c.$0.7m.
Working with the NTP
The NTP, founded in 1978, is a world leader in toxicology research. Headquartered at NIEHS, the NTP is managed by the NIEHS and supported by the United States Food and Drug Administration and the Centers for Disease Control and Prevention.
The NTP is an interagency program whose mission is to evaluate agents of public health concern by developing and applying tools of modern toxicology and molecular biology. The program maintains an objective, science-based approach in dealing with critical issues in toxicology and is committed to using the best science available to prioritize, design, conduct, and interpret its studies.
Through the original contract, Provantis enabled NTP research scientists and multiple external contract research organisations and research institutes to streamline their preclinical processes, supporting them in the collection, management and maintenance of their studies.
The accessibility of Provantis data by a diverse NTP and partner community, via Instem’s SaaS delivery model, also enabled the NIEHS to meet a key goal of combining study information with a broader set of biology information to improve scientific insights.
For more information about the collaboration please visit the below link which details the evolution of the long-standing relationship: Read article
Phil Reason, Instem CEO, commented: “We are delighted to announce the continuation of our relationship with the NTP and NIEHS. The longevity of the relationship, continued endorsement from a government agency and potential to evolve further as we broaden our in silico presence over the course of the renewal, underpin significant potential to scale.
“Our collaboration over the years has exemplified the Group’s values and is a perfect case study of how Instem has helped to integrate activities with government agencies, research institutes and CROs, providing data that is shared for insight generation.”
For further information, please contact:
|Instem plc||Via Walbrook|
|Phil Reason, CEO|
|Nigel Goldsmith, CFO|
|Singer Capital Markets (Nominated Adviser & Joint Broker)||+44 (0) 20 7496 3000|
|Stifel Nicolaus Europe Limited (Joint Broker)||+44 (0) 20 7710 7600|
|Wallbrook Financial PR||Tel: +44 (0) 20 7933 8780|
Instem is a leading provider of IT solutions & services to the life sciences market delivering compelling solutions for Study Management and Data Collection; Regulatory Solutions for Submissions and Compliance; and Informatics-based Insight Generation.
Instem solutions are in use by over 700 customers worldwide, including all the largest 25 pharmaceutical companies, enabling clients to bring life enhancing products to market faster. Instem's portfolio of software solutions increases client productivity by automating study-related processes while offering the unique ability to generate new knowledge through the extraction and harmonisation of actionable scientific information.
Instem products and services address aspects of the entire drug development value chain, from discovery through to market launch. Management estimate that over 50% of all drugs on the market have been through some part of Instem's platform at some stage of their development.
To learn more about Instem solutions and its mission, please visit instem.com.