Shares in Integumen PLC (LON:SKIN) rose 15% on Tuesday afer the firm revealed it had landed three contracts for its new product worth £290,000.
Labskin AI is a digital extension to the lab-grown skin the company specialises in, which helps cut the testing process in half and with it costs.
To accommodate the new business announced on Tuesday, and the pipeline of potential orders, Integumen is increasing its laboratory capacity by 50%.
WATCH: Integumen builds out laboratory capacity as it bags three new contracts
The three new clients are described thus: a leading drug store chain, a European provider of beauty and household products, and the creator of CBD-infused tampons designed to fight period cramps.
Integumen's chief executive Gerry Brandon said the orders revealed there was “real demand” for its AI services from the health and beauty sector that has to comply with a tough new EU directive (2017/745, Rule 21), which in turn requires the rigorous testing of products that come in contact with the skin.
“Following recent changes to our strategy to target larger, higher-value contracts, these new agreements highlight the progress we are making as we set the business up for greater expansion,” he added.
In late morning trading, Integument shares were up 13.9% to 2.26p.
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