Instem plc Trading Update and Notice of Half-Year Results (9392H)
August 24 2016 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 9392H
Instem plc
24 August 2016
Instem plc
("Instem" or "the Company")
Trading Update and Notice of Half-Year Results
Instem (AIM: INS.L), a leading provider of IT solutions to the
global early development healthcare market, provides its trading
update for the six-month period to 30 June 2016.
The encouraging market dynamics in early drug development,
including the new regulatory requirements driven by the Standard
for the Exchange of Non-clinical Data ("SEND"), has supported
year-on-year revenue growth in the first half of 2016, with overall
trading providing confidence that results for the full-year to 31
December 2016 will be in line with market expectations.
Instem's portfolio of solutions and services to satisfy SEND,
which is mandated by the FDA, has been in particular demand as the
initial December 2016 regulatory compliance milestone approaches.
Instem is continuing to invest to maximise its share of this
developing market over the coming years.
The implications of the acquisition of WIL Research ("WIL") by
Charles River Laboratories ("CRL"), both significant Instem
clients, have now been clarified. The Company is pleased to report
that a single agreement has been negotiated covering the provision
of Instem products and services at all current CRL and former WIL
sites. This new agreement includes the continuation of all current
licenses, an extended support and maintenance contract, running
through to 31(st) December 2022, and the integration of two sizable
Provantis(R) and submit(TM) implementation projects. The revised
agreement will result in moderately higher revenue in 2016 than
receivable under the previous, separate WIL and CRL contracts,
together with enhanced cash receipts in 2016 and 2017 and reduced
annual fee income from CRL for 2017 to 2022 in return for the
longer contract duration. Opportunities exist to continue to grow
this key relationship over the coming years.
Following the record order intake in 2015, fewer orders were
placed in the early phase clinical market than had been expected,
although the pipeline for the next 12 months remains strong.
Offsetting this, the pre-clinical market remains very active; this
is Instem's largest area of activity, generating around 90% of the
Company's revenues.
In February 2016, following strong support from our new and
existing investors, Instem raised GBP4.7m net of expenses, to fund
acquisitions and working capital. We announced the acquisition of
Samarind Limited, on 31 May 2016. This acquisition is expected to
be accretive to earnings in 2016 and beyond and extends Instem's
software portfolio, as well as offering additional opportunities
for the provision of out-sourced regulatory services. The
integration of Samarind is progressing well.
Notice of Half-Year Results
Instem will announce its Half Year Results on Monday 19
September 2016 and management will be hosting a presentation for
analysts on the day at 9.30am at the offices of Walbrook PR, 4
Lombard Street, London, EC3V 9HD. Analysts wishing to attend the
presentation should register their interest by emailing
instem@walbrookpr.com or by telephoning 020 7933 8780.
Phil Reason, CEO of Instem plc, commented: "The first half of
2016 has continued the momentum of 2015, as early phase life
sciences research and development has continued to flourish.
Securing a long-term relationship with Charles River Laboratories,
by far the largest pre-clinical CRO in the industry, is expected to
help underpin our future growth. Our long-term leadership in the
SEND market has been reinforced and our acquisition of Samarind has
enhanced our existing lines of business while extending our
addressable market. We continue to see positive trends across our
target markets and Management remains confident it can continue to
deliver further growth over the remainder of the year."
For further information, please contact:
Instem plc Tel: +44 (0) 1785 825
600
Phil Reason, CEO www.instem.com
Nigel Goldsmith, CFO
N+1 Singer (Nominated Tel: +44 (0) 20 7496 3000
Adviser & Broker)
Richard Lindley
Nick Owen
Walbrook PR Ltd Tel: +44 (0) 20 7933 8780
or
Paul Cornelius instem@walbrookpr.com
Helen Cresswell
Sam Allen
About Instem
Instem is a leading supplier of IT applications and services to
the early development healthcare market delivering compelling
solutions for data collection, analysis and regulatory submissions
management. Instem solutions are in use by customers worldwide,
meeting the rapidly expanding needs of life science and healthcare
organisations for data-driven decision making leading to safer,
more effective products.
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 supports over 500 clients through offices in the United
States, United Kingdom, Japan, China and India.
To learn more about Instem solutions and its mission, please
visit www.instem.com
This information is provided by RNS
The company news service from the London Stock Exchange
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