$12m five-year agreement with Leading CRO
02/09/2022 07:00
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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™ 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 (http://www.instem.com/)
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