Instem plc $12m five-year agreement with Leading CRO (0110Y)
September 02 2022 - 2:00AM
UK Regulatory
TIDMINS
RNS Number : 0110Y
Instem plc
02 September 2022
Instem plc
("Instem", the "Group" or the "Company")
$12m five-year agreement with Leading Contract Research
Organisation
Further growing SaaS revenues with long-term client
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, announces a five-year agreement, worth
over $12 million, with a leading global contract research
organisation ("CRO" or "Client") to support over 2,000 users
worldwide in their clinical trial analysis.
The Client, which has been a clinical trial analysis customer
since 2016, is adopting Instem's new Aspire(TM) software solution,
being developed by the Group's Clinical Trial Acceleration business
unit, formed in 2021 following the acquisition of d-Wise
Technologies, Inc. ("d-Wise"). This contract demonstrates the
execution of the Company's SaaS strategy and the value of its
inorganic growth strategy through the d-Wise acquisition, further
expanding Instem's global coverage and end-to-end solutions.
The initial five-year agreement includes a one-time
implementation project worth approximately $3 million, revenue to
be recognised during 2022 and 2023, with recurring
software-as-a-service ("SaaS") subscription revenues worth at least
$2.25 million annually over 4 years, with revenue forecast to be
recognised from late quarter three 2023. Additional Amazon Web
Services Cloud fees charged to the client will be variable based on
actual usage. Aspire related SaaS revenue will provide increased
visibility and higher margin returns for the Company compared to
previous, custom statistical computing environment ("SCE")
implementations. For this client specifically, annual recurring
revenue is expected to be approximately $1m more than currently
received to host their custom SCE.
The Aspire solution is a significant advancement in the Client's
digital transformation, providing cloud-native capabilities that
will enable scalability, elasticity, and resiliency. The Client
will benefit from a suite of leading, modern analysis tools and
efficiencies through new workflow features. This will accelerate
both the CRO's delivery of clinical trial results to their clients
and their clients' delivery of life-saving medicines to
patients.
The contract is the largest ever received by Instem and will
help to underpin management expectations for the current and future
years.
Phil Reason, Instem Chief Executive, commented: " This agreement
marks a key juncture in our long-standing relationship with the
Client, and we are very excited to support them as they adopt their
next generation solutions. Using Aspire, they will see significant
advancements in their current capabilities and overall
robustness.
"This agreement underlines the advantages of our long-term
acquisition strategy in broadening our market reach, technological
capabilities and client list while providing opportunities to
introduce compelling new SaaS solutions that advance our mission to
help to radically reduce the cost and time of drug
development."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information, please contact:
Instem plc Via Walbrook
Phil Reason, CEO
Nigel Goldsmith, CFO
Singer Capital Markets (Nominated
Adviser & Broker) +44 (0) 20 7496 3000
Peter Steel
Alex Bond
Rachel Hayes
Stifel Nicolaus Europe Limited (Joint
Broker) +44 (0) 20 7710 7600
Ben Maddison
Alex Price
Richard Short
Walbrook Financial PR +44 (0) 20 7933 8780
Tom Cooper instem@walbrookpr.com
Nick Rome
About Instem
Instem is a leading provider of IT solutions & services to
the life sciences market delivering compelling solutions for Study
Management, Regulatory Submissions, Clinical Trial Acceleration,
and Informatics-based Insight Generation.
Instem solutions are in use by over 700 customers worldwide,
including all of 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 during their
development.
To learn more about Instem solutions and its mission, please visit www.instem.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRUAVVRUOUKRAR
(END) Dow Jones Newswires
September 02, 2022 02:00 ET (06:00 GMT)
Instem (LSE:INS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Instem (LSE:INS)
Historical Stock Chart
From Jul 2023 to Jul 2024