Instem (LON:INS) said demand had “intensified” in the clinical and pre-clinical sectors as it published a strong set of interims.
The group, which provides IT services to drug developers, reported a 31% increase in turnover, which pushed underlying earnings (EBITDA) to £900,000 (from £100,000 12 months ago).
It said 67% of total revenues are now recurring, an increase of 19%.
In the niche market of pre-clinical safety assessment, Instem dominates with its Provantis product, which is made up of eight separate, chargeable licence components.
However, ALPHADAS product suite, the result of an acquisition of Logos Technologies in 2013, is also gaining traction.
Focused on early stage clinical trials, it has been deployed with four new clients and eleven new clinical sites across Europe, Canada and the US during the period.
"Research and development pipelines in the pharma industry continue to grow, particularly in the earlier phases of development in which Instem specialises,” said chief executive Phil Reason.
"With a solid backlog of existing orders, high levels of customer retention and a growing prospect pipeline, trading is expected to be in line with management expectations for the full year 2015 and we have confidence in the opportunities for 2016."