We believe our SaaS value proposition offers both Instem and our customers enduring benefits and increases shareholder value as the visibility of our revenue continues to improve.
Phil Reason, chief executive
What it does
In short, its tech helps its customers to bring their products to market faster.
The AIM firm owns more than a dozen software applications, including its flagship SEND technology.
SEND stands for Standard for the Exchange of Nonclinical Data and is a protocol set up by the US Food and Drug Administration. It ensures that companies present data in a consistent format.
Among Instem’s other top products is Samarind – a software-as-a-service (SaaS) platform that enables companies to register and track their regulated products worldwide by maintaining a single integrated database, which is then used to update drugs watchdogs as products change over time.
The company, which is valued at nearly £60mln, has over 500 clients, including some of the world’s biggest pharmas. Last summer, for example, an unnamed Fortune 500 giant signed a deal worth US$750,000 to use Samarind.
How it’s doing
In a trading update posted in July, Instem said revenue rose 10% in the first half of 2019 as all three areas of its business performed well.
Revenues from SaaS grew by more than expected during the period as more new customers chose SaaS subscriptions over perpetual licensing and a growing number of existing clients moved from on-premise deployments to SaaS, as planned.
There was a related short-term impact on earnings but operating cash flow has been particularly strong, Instem said, with net cash at the end of June standing at £6.0mln, up from £3.7mln at the beginning of the period.
The company revealed it continues to build a “healthy pipeline of new business”, with the number of individual transactions increasing significantly year-on-year across all sectors of the life sciences industry.
Importantly, further diversification of revenue by both type and geography is expected to continue to benefit performance through the remainder of the year, Instem said.
What the boss says
Phil Reason, chief executive of Instem, said in July’s trading update: “We believe our SaaS value proposition offers both Instem and our customers enduring benefits and increases shareholder value as the visibility of our revenue continues to improve.”
He added: "The board expects that full-year performance will be in line with expectations."