US Government Contract Extension

RNS Number : 1889D

Instem plc

26 March 2014

 

26 March 2014

RNS Reach

Instem plc
("Instem", or the "Company")

US Government Contract Extension

NIEHS extends use of Provantis Preclinical software across additional sites and users

Instem (AIM:INS), a leading provider of IT solutions to the global early development healthcare market, announces that the National Institute of Environmental Health Sciences (NIEHS), part of the US National Institutes of Health (NIH), has exercised the year two option for Instem's Provantis preclinical software suite via SaaS (Software-as-a-Service), supporting National Toxicology Program studies.  It has also exercised options to add two further operational sites and 100 further Provantis users.

The value of this latest extension to the contract, which was signed in February 2013, is approximately $1.3 million and the potential remains to extend and expand the agreement up to a further 8 years, giving a possible total contract value for all 10 years of between $6.5m-$7.6m. Having also added two additional sites during 2013, there are now 6 sites licensed under the agreement. The contract includes the ability to licence usage at 6 additional sites (maximum 12 sites in total) on the same terms, which could result in a further material increase in revenue.

The National Toxicology Program (NTP) is an interagency program established in 1978 to coordinate toxicology research and development across the Department of Health and Human Services. The program was also created to strengthen the science base in toxicology, develop and validate improved testing methods and provide information about potentially toxic chemicals to health regulatory and research agencies, scientific and medical communities, and the public.

Headquartered at NIEHS, the NTP is managed by the NIEHS and supported by the United States Food and Drug Administration and the Centers for Disease Control and Prevention.

Phil Reason, CEO of Instem plc, commented, "The first twelve months under this important US government contract have gone very well and the renewal for the first option year marks an important contract milestone.  We continue to see opportunities for further government related contracts and our performance under this NIEHS contract provides a valuable reference project.

"This long term contract provides funding for the development of the Provantis suite in areas specific to the National Toxicology Program, adding further depth to our market leading study management platform and positioning Instem well for anticipated contract extensions."

For further information, please contact:

Instem plc	[phone]
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser & Broker)	[phone]
Richard Lindley
Nick Owen
Newgate Threadneedle	[phone]
Caroline Forde
Fiona Conroy

About Instem

Instem is a leading supplier of IT applications to the early development healthcare market delivering compelling solutions for data collection, management and analysis across the R&D continuum.  Instem applications are used by customers worldwide, meeting the rapidly expanding needs of life science and healthcare organisations for data-driven decision making leading to safer, more effective products.

Instem's established portfolio of software solutions increases client productivity by automating study-related processes while offering the unique ability to generate new knowledge through the extraction and harmonisation of actionable scientific information.

Instem supports over 400 clients through full service offices in the United States, United Kingdom and China with additional locations in India and a full service distributor based in Japan. 

To learn more about Instem solutions and its mission, please visit www.instem.com or its investor centre http://investors.instem.com/  

About NIEHS
The NIEHS supports research to understand the effects of the environment on human health and is part of the National Institutes of Health (NIH). Its mission is to reduce the burden of human illness and disability by understanding how the environment influences the development and progression of human disease.

For more information on environmental health topics, visit www.niehs.nih.gov.

The NIH - The Nation's Medical Research Agency - includes 27 Institutes and Centers and is a component of the U.S. Department of Health and Human Services. It is the primary federal agency for conducting and supporting basic, clinical and translational medical research, and it investigates the causes, treatments, and cures for both common and rare diseases. For more information about NIH and its programs, visit www.nih.gov.

This project has been funded in whole or in part with Federal funds from the National Institute of Environmental Health Sciences, National Institutes of Health, Department of Health and Human Services, under Contract No. HHSN27320130004C.

 

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