TIDMINS
RNS Number : 3607V
Instem plc
23 July 2018
Instem plc
("Instem", the "Company" or the "Group")
Trading Update
Results in-line with management expectations
SEND contract value in H1 2018 exceeds that for the entire
FY2017
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, announces a trading update for the six
months to 30 June 2018 (the "Period").
Financial Highlights
Trading for the Period was in-line with management expectations.
Net cash as at 30 June 2018 was GBP3.7m (30 June 2017;
GBP1.2m).
Operational Highlights
There were positive contributions in most areas, with several
significant new client wins in addition to existing customers
extending and expanding their adoption of Instem's products and
services.
Investment in Instem's early phase clinical product, Alphadas,
was increased with a focus on current client needs and recognising
that the enhancements will have wider market appeal going
forward.
Importantly, the business continued to expand its SaaS delivery
model for accessing its solutions via the Instem Cloud with both
Provantis(R) and Samarind RMS being deployed via
Software-as-a-Service by additional multinational corporations.
SEND Market Update
The Regulatory Solutions business performed particularly
strongly during the period following the latest FDA mandate of the
Standard for the Exchange of Non-clinical Data ("SEND").
Increasing Number of Contract Wins
Orders for the Company's SEND software solutions and
technology-enabled SEND out-sourced services over the period have
increased year-on-year with 103 orders won during the six-month
period ended 30 June 2018, compared to 47 and 65 for the first and
second six-month periods of 2017 respectively. Importantly, more
SEND out-sourced services deals were closed in the first half of
2018 than for the entire 2017 financial year. These contract wins
will increasingly impact overall Group revenues in H2 and beyond in
line with recruitment of the necessary services personnel, which
has been ongoing throughout 2018.
These new orders came from 50 unique clients during the period,
compared with 32 for the equivalent period last year and the
Company continues to win the overwhelming majority of all business
quoted for.
All of Instem's study conversions are performed on a secure,
hosted and validated SEND services platform, which is available and
supported 24/7 utilising Instem's submit(TM) SEND software suite.
This is the same submit(TM) software that is in production use at
pharma and contract research organisations worldwide.
Increasing Contract Value
The total contracted value of SEND-related new business for the
current period increased approximately 190% over the corresponding
period last year with outsourced services orders particularly
strong.
Increasing Pipeline
The Company continues to believe that this rapid growth has been
largely driven by the IND ('Investigational New Drug') legislation
from the FDA, which mandated that studies started after 17 December
2017 and included in IND regulatory submissions must use the
electronic SEND format.
Future demand appears to be similarly robust and the Company has
a strong SEND new business pipeline for both technology and service
related sales, with both the number and value of SEND contracts
expected to increase in the second half of 2018 and expected to be
significantly ahead of last year.
Outlook
The further shift towards a SaaS based revenue model, combined
with increasingly material recurring outsourced services revenue,
will see a continued improvement of earnings visibility. This helps
position the Company strongly to meet management's full year
expectations.
Phil Reason, CEO of Instem plc, commented:
"The financial year has started well and we are confident
further new business, the delivery of recent contract wins and
strong operational management will ensure we meet our expectations
for the full year."
For further information, please contact:
Instem plc +44 (0) 1785 825 600
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser
& Broker) +44 (0) 20 7496 3000
Richard Lindley
James White
Walbrook Financial PR +44 (0) 20 7933 8000
Paul Cornelius instem@walbrookpr.com
Nick Rome
Sam Allen
About Instem
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 customers worldwide and enable
our 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 supports over 500 clients through offices in the United
States, United Kingdom, France, Japan, China and India.
To learn more about Instem solutions and its mission, please
visit instem.com.
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END
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