Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Instem enjoys strong second half; bags £1.7mln contract from CRO

Revenue increases and expense reductions have delivered a strong increase in full-year profit and the sales order pipeline has once again strengthened
Phil Reason, Instem
Instem believes this is the largest outsourced SEND services contract ever awarded

Instem Plc (LON:INS) has won a new two-year SEND (Standard for the Exchange of Nonclinical Data) outsourced services contract.

The contract has been awarded by an unnamed top five global nonclinical contract research organisation (CRO) and is worth in excess of £1.7mln over an initial two-year period.

READ: Instem boss says firm is better positioned for profitable growth than ever before

Revenue of at least £0.7mln is expected to be generated in the current year.

"For several years, we have been presenting an anticipated substantial 2018 uplift in SEND study volume following the December 2017 FDA mandate, which is now materialising,” said Instem’s chief executive officer, Phil Reason.

The US Food and Drug Administration (FDA) announced in December 2017 that the next major milestone in its adoption of the SEND was now in force, mandating that earlier stage drug approval submissions now fall under the requirement to include SEND data packages.

“With SEND data sets now on the critical path in the new drug development timeline, the industry will only work with partners that can quickly deliver to an exceptionally high quality, which puts Instem's people and technology in very high demand. This new CRO award, combined with commitments to other clients, means we are already contracted to deliver in 2018 over five times the number of SEND assignments completed in 2017," he added.

"Winning what we believe to be the largest outsourced SEND services contract ever awarded is clearly a huge endorsement of Instem and our SEND credentials,” Reason asserted.

2017 results

In a separate announcement, Instem said results for 2017 are expected to be in line with market expectations.

Instem successfully delivered around £0.75mln of cost savings anticipated in its mid-2017 restructuring and ended the year with net cash of around £3.1mln.

All areas of the business made a positive contribution to the full-year financial performance, with many new client wins, as well as existing customers extending their use of Instem's products and services, the company said.

"After slower than anticipated growth in H1 2017 the second half of 2017 has been much stronger. Revenue increases and expense reductions have delivered a strong increase in full-year profit and the sales order pipeline has once again strengthened,” Reason said, adding that the current period has started well.

View full INS profile View Profile

Instem Plc Timeline

Related Articles

Virtual Reality headset
May 02 2018
The integration of the group's Apollo 11 experience into the Oculus Go launch package has seen its share price rocket up over 40%
Network security
March 13 2018
The company was arguably late to change to a software-as-a-service model, but the change is beginning to take hold
August 16 2018
In March, it formed a joint venture with New Hope Data Technology Co Ltd, which is affiliated to conglomerate New Hope Group

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use