Shares in healthcare software specialist Instem (LON:INS) shot up as much as 40% this morning as it unveiled new business with the US government.
The AIM quoted IT firm will provide the US National Institute of Environmental Health Sciences with its Provantis 9 preclinical software suite.
The software-as-a-service (SaaS) product will be used to support National Toxicology Program studies, Instem said.
Instem told investors the initial deal would be worth US$870,000 in the first year, and if it is extended it could be worth between US$6.2mln and US$7.6mln over ten years. Also the deal could be extended to other sites, and Instem says this would result in a material increase in revenue too.
"Such a significant contract with the US government, won through a competitive tendering process, is not only a fantastic endorsement of Instem's innovative software but also of our strategy to support collaborative working practices,” said chief executive Phil Reason.
“Our SaaS delivery model enables the sharing of the software between dispersed communities from multiple organisations.”
On AIM Instem shares were up 32% trading at 129p each.