US Government Contract Award
11/05/2023 07:00
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RNS Number : 0219Z 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 provider 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
(https://www.instem.com/news/articles/0403-instem-receives-award-from-niehs.php)
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 (http://www.instem.com/)
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