The contract is worth approximately US$1mln, the group said in a statement, with a majority of the revenue to be recognised in 2020 and the balance in 2021.
Instem said it will provide the Korean company with a comprehensive package of preclinical data collection, analysis and regulatory submissions management solutions. These will help it to automate and optimize stud- related processes at Biotoxtech's facility in North Chungcheong Province, it added.
Instem said it was awarded the contract after a competitive tender, which recognised its leading position in non-clinical IT solutions.
Biotoxtech has already received certifications for Good Laboratory Practices by international regulators, including the US Food & Drug Administration.
Phil Reason, Instem’s chief executive, said he was delighted with the contract.
“South Korea has been investing heavily in its pharmaceutical R&D capabilities and has become a significant player on the global stage. We continue to have a strong footprint in the Asia-Pacific region and are working hard to ensure that we maintain our world-leading market position," he added.
CEP says it is very busy in spite of coronavirus disruption
Instem also revealed results for the year to end December 2019, which saw revenues increase 13% to £25.7mln and underlying profits (adjusted EBITDA) rise to £4.9mln from £4.1mln.
Recurring revenue rose 9% to £14.9mln, while software-as-a service (SaaS) sales improved £16mln to £6.4mln.
After goodwill and intangible asset impairments, Instem recorded a loss of £900,000 (£1.7mln profit).
Reason said there has been some uncertainty due to the coronavirus (COVID-19) outbreak, but added most of its revenue comes from clients with laboratories that are regarded as essential businesses and many are working on COVID-19 related vaccines and therapies.
“Consequently, we have remained very busy, have good visibility over a strong H1 2020 performance and continue to have confidence in the longer-term outlook for the business, supported by a strong cash balance at the end of April 2020 of £8.3mln,” he added.