TIDMINS
Instem plc
11 May 2023
Instem plc
("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 p rovider 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 NPT 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 & Broker) +44 (0) 20 7496 3000
Peter Steel
Alex Bond
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
Joe Walker
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
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