$12m five-year agreement with Leading CRO
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™ 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 |
|
|
|
|
|
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
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.
Latest directors dealings
- 9 hours ago ASOS
- 10 hours ago MJ Gleeson
- 10 hours ago Rolls-Royce Holdings
- 11 hours ago Crest Nicholson Holdings
- 11 hours ago Naked Wines