Instem(INS) , a provider of IT solutions to the global life sciences market, said in a trading update today that it had seen double-digit revenue growth in H1, alongside a record number of operational milestones.
Revenue is expected to be £29.7m, up 10.2%, not including the sale of Samarind Limited in April. Annual Recurring Revenue stood at c.£41m, up from £32m in the previous period and increasing from £35m from 1 January 2023.
As of June 30, 2023, closing cash was £8.4 million (£10.3 million on June 30, 2022), with £5.8 million paid for deferred consideration on past acquisitions in H1 2023.
Operational momentum came from the transfer of the ToxHub Platform - designed to speed up the development of medicines - and the launch of Centrus® , a tool for information integration in early drug development, both announced in May. Instem also renewed its long-standing agreement with the National Toxicology Program, and after the period end grew its Provantis footprint further by Altasciences signing a three-year subscription order worth $3.1m.
Looking ahead, Instem said that revenue growth will be second half weighted, benefitting from increased software recurring revenue and expected contract renewals with existing clients. Management is confident that FY23 group performance will be broadly in line with the board’s expectations.
Phil Reason, Instem CEO, commented: "We are delighted with the continued momentum we are seeing, advocating our acquisition strategy and highlighting our standing across the drug research and development lifecycle. We believe there is significant potential to continue driving value and look forward to building on the Company's growing market reach."
View from Vox
The drug discovery process can be incredibly costly and rising, with new research finding the average cost of developing a new drug among the top 20 global biopharmas rose 15% last year, to approximately $2.3 billion.
Instem is in a prime position to assist, with workflow software and data science solutions that are targeted at increasing life science R&D efficiency, currently used by over 700 customers worldwide, including the largest 25 pharmaceutical companies. Instem's software helps companies radically reduce the cost and time taken for drugs to come to market across the discovery and development lifecycle.
The transfer of ToxHub is set to enhance Instem's already significant time and cost-saving capabilities. The company received its first subscription order for the platform from industry leader Bayer AG, further speeding up medicine development when coupled with Instem's existing data sharing, predictive modeling, and insight generation solutions.
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