New Business Update
15 December 2020
(“Instem” or “the Company”)
New Business Update
To Generate Additional £2.2m Revenue from Existing Client
Instem plc (AIM: INS), a leading provider of IT solutions to the global life sciences market, announces that the Company has been awarded new business worth c.£2.2m by one of its key clients, incorporating additional software licencing, annual support and funded product development revenue streams. This further strengthens this long-standing relationship, the value we bring to one another and the resulting benefits to the wider life sciences research and development market.
Approximately 35% of the total order value will be recognised in 2020, with the remainder being recognised in 2021. Furthermore, annual recurring revenue generated by the client is expected to increase by approximately £0.5 million, providing future revenue visibility, already a significant strength of the Company’s business model.
The additional contracts include the expansion of the client’s Provantis® user base, by over 25%, reflecting the continuing growth in non-clinical research development. Instem will also provide the client with SEND (the Standard for the Exchange of Non-clinical Data) staff augmentation support, which will act as an extension of their staff to help address growing future demand (and backlog) for SEND study services. Among other things, the funded product development work will involve Provantis integration with a leading, third party digital pathology solution, offering the potential for significant future productivity enhancement and facilitating the work of an increasingly distributed pathologist community.
Phil Reason, CEO of Instem plc, said: “We are delighted to have further strengthened our long-standing relationship with this key existing client. This provides welcome endorsement of our product suite and our ability to win and deliver contracts of scale for new and existing clients. The market fundamentals remain strong and we look forward to benefitting from further cross-selling and up-selling opportunities within our existing client base.”
For further information, please contact:
|Phil Reason, CEO||Via Walbrook|
|Nigel Goldsmith, CFO|
|N+1 Singer (Nominated Adviser & Broker)||+44 (0) 20 7496 3000|
|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 500 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.